British Airways Fined for Price Fixing

British Airways will pay a $4.2 million fine under a ruling by a Canadian court that the airline participated in a cargo price-fixing cartel between 2002 and 2006. 

The ruling by a federal court in Ottawa is part of the spreading series of penalties around the world that have taken in many of the world's largest freight carriers.

The fines in Canada against BA, Air France, KLM, Martinair and Qantas total some $13.5 million. 

"The fines obtained as a result of our investigation into the air cargo price-fixing conspiracy reflect the serious nature of this behavior," said Melanie Aitken, Canadian commissioner of competition. "The fines obtained as a result of our investigation into the air cargo price-fixing conspiracy reflect the serious nature of this behavior."

The bureau’s investigation continues with other airlines. From March 2010, the maximum fine will be increased to $23.17 million per count and imprisonment for up to 14 years, or a combination of both.

A court in Australia last month rejected Singapore Airlines' challenge to the Australian government's jurisdiction in a price-fixing investigation there.