Japan Airlines admits cargo fix

The airline is the largest cargo carrier between Japan and the US

Japan Airlines (JAL) is to be fined $110m (£55.5m) after admitting that it helped to fix the price of cargo shipments between Japan and the US.

The airline has agreed to plead guilty to criminal charges of taking part in a conspiracy with other airlines to thwart competition on key cargo routes.

Prosecutors said JAL earned about $2bn from the illegal practices which took place between 2000 and 2006.

BA, Korean Air and Qantas have already pleaded guilty to similar charges.

Consumer damage

The Department of Justice (DOJ) said JAL and other airlines had effectively "eliminated competition" by agreeing to synchronise prices for cargo shipped on flights to the US.

The airline's plea bargain is subject to court approval.

"This price-fixing conspiracy inflicted a heavy toll on American businesses and consumers," said Thomas Barnett, a senior official at the DOJ.

JAL said it had co-operated fully with the investigation - conducted jointly by the DOJ and the FBI - and would further strengthen its compliance procedures.

"The company will not tolerate any behaviour that contravenes such laws and regulations," the airline, Japan's largest, said.

A Japanese government spokesman described JAL's behaviour as "regrettable" but said the Japanese authorities would not be taking separate action against the carrier.

British Airways, Korean Air and Qantas have all previously agreed to pay sizeable fines after admitting their involvement in a price-fixing agreement over cargo shipments.