flight rates for cartel schemes was that surcharges were not discounted in
practice and were considered to result in relatively less consumer backlash.
The cartel conspiracy was implemented in a widespread manner targeting all
outbound shipments from Korea and inbound shipments to Korea from major
overseas airports as explained in the following sections.
First, regarding outbound shipments from Korea, Korean Air and Lufthansa
agreed to introduce fuel surcharges in June 2002, and later, seventeen (17)
airlines345 including the former two (2) reached an agreement to impose fuel
surcharges of KRW 120 per kg starting from April 16, 2003 at the Board of
Airline Representatives (hereinafter, "BAR") meetings held between January
and April 2003. They also agreed to raise surcharge rates in October 2004,
July 2005 and November 2005, and implemented the rate hikes as agreed upon.
The concerned cartel was terminated as the BAR meetings came to an end on
July 31, 2007.
Second, the conspiracy on shipments from Hong Kong to Korea started with
an agreement by seven (7) carriers346 on January 14, 2000, to impose fuel
surcharges of HKD 0.50 per kg starting from February 1, 2000 at an air cargo
sub-committee meeting of BAR. They consistently conspired to increase
surcharge rates adjusted to oil price hikes, and actually charged higher rates
then agreed-upon. The cartel on Hong Kong-Korea shipments was terminated
as Cathay Pacific Airways announced its withdrawal from the sub-committee
of BAR on June 25, 2007.
Regarding shipments from Europe to Korea, ten (10) airlines347 agreed to
introduce fuel surcharges of ten (10) euro cents per kg starting from February
1, 2000 through the Interline Meeting comprised of airlines operating in
Germany (the so-called “coffee meetings”), or through individual