South Korea Warns Japan's Airlines on Anti-Trust

Three Japanese airlines announced separately that they have been warned by South Korea over their possible violation of that nation's anti-trust law in their international cargo operations.

The Korean Fair Trade Commission warned Japan Airlines Corp., All Nippon Airways, and Nippon Cargo Airlines. JAL and NCA announced KFTC's anti-trust warning on Friday; ANA did so on Thursday.

JAL is Asia's biggest air carrier mired in a serious financial crisis. ANA is Japan's second-largest air carrier. NCA, Japan's only air freight company, is a subsidiary of Nippon Yusen Kabushiki Kaisha (NYK Line), the nation's largest shipping firm by revenue.

The three Japanese airlines did not disclose any details of the allegations, but Nikkei, Japan's biggest business daily, reported that they are suspected of having formed an international air cargo price-fixing cartel.

JAL, ANA and NCA all said in their statements that they will carefully examine the KFTC's warning reports and respond to them appropriately.

According to the three Japanese airlines, the KFTC's reports do not mean that the South Korean body has made a final decision on their violation of that nation's anti-trust law.

The KFTC will hold hearings with JAL, ANA and NCA, and if it finds them to be in violation of the South Korean anti-trust law, it will fine them. If JAL, ANA and NCA are dissatisfied with the KFTC's final decision, they will be able to file appeals against it with a South Korean court, according to the three Japanese airlines.

Contact Hisane Masaki at yiu45535@nifty.com.