Business

China Airlines agrees to pay $40m US price-fixing fine

An aircraft of Taiwan-based China Airlines
Image caption The firm will look to pay its fine over five years

China Airlines is to plead guilty and pay a $40m (£25m) fine for its role in fixing air-cargo prices, the US Department of Justice has said.

The Taiwan-based airline conspired to fix air-cargo rates from January 2001 to February 2006, the department said.

Northwest has agreed to plead guilty to a single offence, added the DoJ.

So far a total of 18 airlines have pleaded guilty or agreed to do so in an ongoing investigation into price-fixing in air cargo.

'Resolve investigation'

"China Airlines engaged in a conspiracy to fix the cargo rates charged to customers for international air cargo shipments to and from the United States," the Department of Justice said in a statement.

The carrier will pay the fine in annual installments over five years.

"If approved by the court, the agreement will resolve the DoJ investigation as to China Airlines," the airline said in a statement.

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