American Airlines agrees to pay $5 million to settle freight price-fixing case

American Airlines to pay $5m in freight case

DALLAS — American Airlines has agreed to pay $5 million and provide evidence against other airlines to settle a class-action lawsuit brought by freight shippers who were victims of a price-fixing cartel.

A lawyer for the shippers, Michael Hausfeld, said Wednesday that American was the first airline to agree to help the shippers conduct other lawsuits outside the United States. He said Air France KLM, which said this month it agreed to pay $87 million to settle its role in the same case, refused to offer its help.

Tim Wagner, a spokesman for AMR Corp.’s American Airlines, said the settlement avoids the cost of a trial.

“American Airlines has done nothing wrong, and the settlement makes clear that American is admitting no fault or liability,” Wagner said.

According to the settlement agreement filed this week in federal district court in New York, the shippers and American agreed to settle in April 2009 and American has been cooperating for more than a year. American agreed to provide documents and witnesses.

U.S. and European officials investigated the airline industry’s freight pricing and found they conspired to fix cargo prices and fuel surcharges. According to the U.S. Department of Justice, more than a dozen airlines have pleaded guilty and paid criminal fines totaling more than $1.6 billion.

Air France was fined $350 million, and British Airways and Korean Air were fined $300 million apiece.

Shippers who were overcharged are pursuing civil lawsuits in the U.S. and other countries. Hausfeld said Lufthansa, Air France, Japan Airlines and American have agreed to settle the U.S. case, and several other carriers were interested in starting negotiations.