Two major airlines were fined $300 million each by a U.S. court after admitting they conspired to fix prices on international flights. British Airways, Britain's largest airline, and Korean Air, South Korea's national carrier, pleaded guilty to antitrust conspiracy charges. Both airlines' fines were reduced because they cooperated with Justice Department investigators. U.S. District Judge John Bates said in Washington that the case “involved considerable commerce and reflected long-term and widespread conduct involving major airlines and players.” The airlines admitted that they conspired with rivals over cargo rates and fuel surcharges, which were added to fares in response to rising oil prices. The result was higher costs for international shippers and passengers. Korean Air's fines could have been twice as high, and British Airways could have faced fines near $900 million, but the Justice Department credited the companies with cooperating in the case. The $300 million criminal fines were the second-largest antitrust sanction by the Justice Department since 1995. The largest antitrust fine, $500 million, was against vitamin company F. Hoffman-La Roche in a 1999 price-fixing case.
