Northwest to pay $38 million cargo price-fixing fine

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Northwest Airlines will plead guilty and pay a $38 million fine for conspiring to fix cargo rates, the Justice Department announced Friday.

In a felony charge filed Friday, the Justice Department said Northwest Airlines Cargo earned more than $80 million from air cargo services between the United States and Japan after the company conspired to fix those rates in violation of federal antitrust laws. The alleged price-fixing occurred between July 2004 and February 2006, prior to Northwest's merger with Delta Air Lines (DAL, Fortune 500).

Northwest agreed to pay the fine and cooperate with an ongoing investigation into an industry-wide conspiracy to fix rates.

The company has also fired the person "it believed had primary responsibility for the conduct in question," Delta said in a statement following the plea agreement.

"The agreement doesn't assert any misconduct by any current or former officer or member" of the company's board of directors, Delta's statement said.

Another 15 carriers - including British Airways, Korean Air Lines, Qantas Airways and Cathay Pacific Airways -- have already either pleaded guilty or agreed to plead guilty in the Justice Department's investigation, paying out $1.6 billion in criminal fines, the department said.

Four executives from Qantas, British Airways and SAS Cargo Group have also been sentenced to serve prison time, and charges are pending against a fifth executive, the department said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 12,801.23 -89.23 -0.69%
Nasdaq 2,903.88 -23.35 -0.80%
S&P 500 1,342.64 -9.31 -0.69%
Treasuries 1.97 -0.08 -3.81%
Data as of 8:54pm ET
Company Price Change % Change
Bank of America Corp... 8.07 -0.11 -1.34%
General Electric Co 18.88 -0.26 -1.33%
Cisco Systems Inc 19.90 -0.10 -0.52%
Ford Motor Co 12.44 -0.25 -1.97%
Frontier Communicati... 4.04 -0.10 -2.42%
Data as of Feb 10
Sponsors

Sections

Now that the complex deal negotiations are over, many foreclosures that had been stuck in limbo will proceed. More

Audit of the Energy Department's controversial loan program in the wake of Solyndra says the risks are slightly less than DOE predicted, largely thanks to a stronger Ford. More

Buzzy social network Pinterest got caught in a disclosure controversy after users found affiliate links slipped into their pins. More

One family-owned Chicago pizzeria is helping to make love connections nationwide with heart-shaped pizzas on Valentine's Day. More

Hoping to cut their losses, banks are paying delinquent homeowners up to $35,000 in incentives to sell their homes in short sales and avoid foreclosure. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.