Northwest Cargo fined USD38m for pricefixing

A US judge has fined Northwest Airlines Cargo US$38 million for price-fixing air cargo charges.

Prosecutors proved that the division, which is no longer operating and whose parent Northwest Airlines is now part of Delta Air Lines, conspired to fix airfreight rates in the US and overseas from July 2004 to February 2006.

Northwest was once the largest US combination cargo carrier, earning more than $80 million between the US and Japan during the time covered.

“The company has accepted responsibility fully,” said the US judge.

In a statement the carrier said: “The agreement between Northwest Airlines and the Department of Justice relates to actions which occurred before the Delta-Northwest merger by certain employees of Northwest Airlines Cargo, the former cargo division of Northwest Airlines.

“The agreement doesn’t assert any misconduct by any current or former officer or member of the board of directors of…Northwest Airlines or Delta.”

The airline also added that it has fired the employee who had primary responsibility for the misconduct.