FedEx, UPS subpoenaed in US cargo probe
FedEx Corp. and United Parcel Service Inc. said on Friday they received grand jury subpoenas as part of a global probe by the U.S. government into possible criminal violations of antitrust laws in the air cargo transportation industry.
The U.S. package delivery companies said they do not believe they are targets of the investigation, which has drawn in Air France-KLM, British Airways Plc, Deutsche Lufthansa AG, Scandinavian airline SAS, Luxembourg-based Cargolux Airlines International and Air Canada’s parent, ACE Aviation Holdings Inc.
The investigation is being conducted by the antitrust division of the U.S. Department of Justice and both companies said they are cooperating with the investigators.
The global probe into the fixing of cargo prices began in February, when the European Union’s executive arm and the U.S. Justice Department raided a number of airlines on both sides of the Atlantic. Other carriers have been asked for information.
At issue are the surcharges that airlines have imposed for fuel, added security since the Sept. 11, 2001, hijackings in the United States and higher war risk insurance, according to some of the carriers being questioned.
Fuel costs for airlines rose to nearly 100 billion USD last year from 44 billion in 2003 USD, according to the International Air Transport Association (IATA), prompting many airlines to impose surcharges on fares.
Insurance industry sources said the cost of war risk insurance on cargo was a fraction of that covering passenger operations and tiny relative to fuel costs.
FedEx shares closed down 1.54 USD at 109.01 USD in Friday trading, while UPS closed down 76 cents at 78.57 USD, both on the New York Stock Exchange.
(Additional reporting by Nick Zieminski in New York)
