communications between December 1999 and February 2000. Later, the cartel
was expanded to include additional air carriers. They agreed to raise the
surcharge rates adjusting to oil price increases and actually implemented the
agreement. This conspiracy was terminated as carriers including Lufthansa
changed their surcharges individually.
Lastly, for conspiracies on shipments from Japan to Korea, five (5) air
carriers348 agreed to impose fuel surcharges of twelve (12) yen per kg starting
from October 16, 2002 at Interline Cargo Sales Association of Japan (ICAJ)
meetings between September and October 2002. They continued to reach and
implement agreements to raise surcharges. The conspiracy was terminated as
carriers left the cartel in August 2006.
2) Features of the cartel
There are several features that distinguish the air cargo cartel at issue from
other cartels. First, respondents used cartel organizations comprised of
competing carriers, originally created for the purpose of intermodal transport,
as a channel for collusion. They particularly relied on air carriers' associations
led by flagship carriers such as BAR of Korea, Hong Kong Air Cargo Sub-
Committee of Bar, ICAJ, BOAR-CSJ and the Interline Meeting of Europe.
Moreover, they held alliance meetings349 on the pretext of enhancing business
efficiency, but actually for the purpose of pursuing price cartel schemes with
competitors. Regarding shipments from Korea, Hong Kong and Japan, where
rates needed to be approved by the competition authorities, the companies
worked in close collaboration to obtain government approval.
Respondents were well aware that their cartel activities could be in violation
of competition laws, thus carried out conspiracies in a very careful and
secretive manner. For instance, in a conspiracy of shipments from Europe,
Secret Services were used to contact competing carriers and, in order to hide
communications with competitors, secret languages were used such as "Paris
(meaning Air France)" or "Amsterdam (meaning KLM Airlines) ".
communications between December 1999 and February 2000. Later, the cartel
was expanded to include additional air carriers. They agreed to raise the
surcharge rates adjusting to oil price increases and actually implemented the
agreement. This conspiracy was terminated as carriers including Lufthansa
changed their surcharges individually.
Lastly, for conspiracies on shipments from Japan to Korea, five (5) air
carriers348 agreed to impose fuel surcharges of twelve (12) yen per kg starting
from October 16, 2002 at Interline Cargo Sales Association of Japan (ICAJ)
meetings between September and October 2002. They continued to reach and
implement agreements to raise surcharges. The conspiracy was terminated as
carriers left the cartel in August 2006.
2) Features of the cartel
There are several features that distinguish the air cargo cartel at issue from
other cartels. First, respondents used cartel organizations comprised of
competing carriers, originally created for the purpose of intermodal transport,
as a channel for collusion. They particularly relied on air carriers' associations
led by flagship carriers such as BAR of Korea, Hong Kong Air Cargo Sub-
Committee of Bar, ICAJ, BOAR-CSJ and the Interline Meeting of Europe.
Moreover, they held alliance meetings349 on the pretext of enhancing business
efficiency, but actually for the purpose of pursuing price cartel schemes with
competitors. Regarding shipments from Korea, Hong Kong and Japan, where
rates needed to be approved by the competition authorities, the companies
worked in close collaboration to obtain government approval.
Respondents were well aware that their cartel activities could be in violation
of competition laws, thus carried out conspiracies in a very careful and
secretive manner. For instance, in a conspiracy of shipments from Europe,
Secret Services were used to contact competing carriers and, in order to hide
communications with competitors, secret languages were used such as "Paris
(meaning Air France)" or "Amsterdam (meaning KLM Airlines) ".
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