2 Former Air France Execs Indicted for Conspiracy to Fix Cargo Prices
On April 26, 2011, the Justice Department announced that two former executives of Paris-based Société Air France were indicted for participating in a conspiracy to fix and coordinate surcharges on air cargo shipments to and from the U.S. and on air cargo service rates in the U.S. and elsewhere.
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Execs Allegedly Conspired with Other Cargo Carriers to Suppress Competition
Marc Boudier, former executive vice president of the cargo division of Air France, and Jean Charles Foucault, former vice president of the cargo division of sales and marketing of Air France, allegedly conspired with other air cargo carriers and their officials to suppress and restrain competition for international air cargo services.
The indictment alleges that Boudier and Foucault participated in the conspiracy from at least as early as August 2004 until at least February 2006. Boudier and Foucault allegedly carried out the conspiracy by fixing and coordinating rates on air cargo shipments to certain U.S. locations and elsewhere and surcharges on air cargo shipments to and from the U.S. and elsewhere, and refusing to pay their customers commissions on surcharges for certain air cargo shipments.
Execs & Co-Conspirators Charged w/Directing Employees to Meet on Rates, Etc.
According to the indictment, Boudier, Foucault and co-conspirators allegedly carried out the conspiracy by participating in or directing the participation of subordinate employees in meetings, conversations and communications to discuss the air cargo shipments surcharges and rates. Boudier, Foucault and co-conspirators are alleged to have issued announcements of the increases on surcharges and rates in accordance with the agreement and understanding they had reached.
Ongoing Investigation Has Charged 21 Airlines, 21 Execs, Imposed $1.8B in Fines
A total of 21 airlines and 21 executives, including Boudier and Foucault, have been charged in DOJ's ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining 17 executives, including Boudier and Foucault.
(See ITT's Online Archives or 12/01/10, 11/04/10, 09/28/10, 09/07/10, 08/02/10, 10/03/08, 07/01/08, 05/14/08, 04/30/08, 04/25/08, 12/05/07, and 08/08/07 news, 10120132, 10110423, 10092825, 10090707, 10080111, 08100399, 08070115, 08051499, 08043099, 08042599, 07120599, and 07080899 for BP summaries of airlines that have been charged as part of DOJ's ongoing investigation and have agreed to pay a total of $1.8 billion in fines.)