Air India gets US anti-trust notice over cargo rates

Air India is headed for fresh trouble. The US government’s anti-trust department has served a notice to the state-owned airline for adopting ‘unfair trade practices’ in its cargo business. The cost of settling the case — either out of court or through litigation — could turn out to be a big drain on the meagre finances of the airline.
The airline’s chairman and managing director Arvind Jadhav has written to the civil aviation ministry to take up the issue with the US authorities on diplomatic levels. A government official said the aviation ministry would have to move the external affairs ministry to help resolve the issue.
Air India sources said the case is several years old and involves allegations of an airlines’ cartel which set cargo charges like handling, delivery and fuel surcharge at identical rates. “The case involves Air India before its merger with erstwhile Indian Airlines,” an official of the company said.
25/02/11 Nirbhay Kumar/Financial Express

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Categories: Air India Feb 2011, Cargo Feb 2011, Foreign Feb 2011