Airlines fined for price-fixing, $1.7 billion so far

by Chris Owen on
U.S government prosecutors have fined 21 airlines $1.7 billion to date in a price-fixing scheme that has cost America’s flying public and cargo shippers millions in a case that dates back to 2000.

Rather than fix problems plaguing the airline industry a decade ago, executives at global carriers scrambled to find an easy way out and avoid financial ruin reports the Associated Press. Between 2000 and 2006 airlines artificially raised passenger and cargo fuel surcharges to make up for lost profits.

“As an example of the impact of the conspiracy, fuel surcharges imposed by some of the conspirators rose by as much as 1,000 percent during the conspiracy, far outpacing any percentage increases in fuel costs that existed during the same time period,” said former Associate Attorney General Kevin J. O’Connor.

They might have not been caught either had it not been for two airlines coming forward to turn in their conspirators. Admitting their “mistake” allowed Lufthansa and Virgin Atlantic to take advantage of a Justice Department leniency program for helping in the investigation. Still, the two airlines were fined over £120 million after admitting to fixing prices on fuel surcharges.

From fines to prison time for airline executives, penalties vary among individual airlines.

Gadling has been following this story all along and in 2008 told of Qantas airline’s involvement . In the case involving Qantas, the price fixing scheme had a focus on their freight division.


It was the freight division of China Airlines too that earned the airline a $40 million fine in the price fixing conspiracy just last September.

Announcing four guilty pleas in June 2008, O’Connor told the Associated Press that the cases “conservatively, has affected billions of dollars of shipments. Estimates suggest that the harm to American consumers and businesses from this conspiracy is in the hundreds of millions of dollars.”

Airlines fined for price-fixing include British Airways, Korean Air, and Air France-KLM but no major U.S. carriers as the case continues. So far, two former executives have been sentenced to six months in prison and two others were ordered to prison for eight months.

Ongoing charges are pending against 15 executives, nine of whom are considered fugitives.

Flickr photo by BriYYZ

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Photo of the day- Bath time in Rwanda

by Chris Owen on
Today’s Photo of the Day is of a family of Gorillas in Rwanda. JD Andrews has traveled to 76 countries on six continents searching for and capturing nature and the beauty of earths creatures on film. The Emmy award winning video producer, photographer, MacGEEK, dog lover and dad brings us this photo of bath time in the jungle. In his words…

“To see animals in a zoo is one thing but when you are a mere 5 feet away from some of the most amazing creatures on earth and you realize they know your there, it’s magical!

On a Gorilla trek in Rwanda, I came across a family of gorillas, the mother, two babies and a Silverback. In this picture you see the mother keeping a close eye on us as the “Dad” Silverback cleans the kids. We were told by the guide that this behavior by the Silverback was very rare as they usually, like all dads, just eat and grunt.

This was my first time to Africa and by no means my last. Like anyone that has been to this amazing continent, you get “hooked” and need to see more and more. I hope to go on many safaris and lots more adventures to observe and capture the beauty of earths creatures”


Five outstandingly delicious places to eat in Alaska

by Darren Murph on

In the spirit of journeying during periods less traveled, I’ve embarked to Alaska this winter. Follow the adventures here, and prepare to have your preconceived notions destroyed along the way.

Particularly in the winter, it’s pretty crucial that you stay warm and well fed while in Alaska. We can’t make any promises about the ease of the former, but we’ve got the latter completely under control. Believe it or not, The Last Frontier is a foodie’s paradise, with a vast number of outstanding local eateries to choose from. During my stay in Anchorage, I was told that there were some 16,000 restaurant permits floating around the greater ANC area, which likely means that you’ve more food options than lodging choices. I was also interested to find that a great many of Alaska’s best eateries are tucked into what we Lower 48ers would call “strip malls.” I’ll admit — prior to visiting AK, I’d visited all 49 of the other states, and strip mall food was rarely a hit. Not so in Alaska. Read on to find out five totally delectable places to eat in the Anchorage and Fairbanks areas; who knows, your favorite hole-in-the-wall might be in there!

%Gallery-118372%1) Silver Gulch

This place didn’t even serve food three years ago, but after being a dedicated brewery for a decade, the owners decided to try their hand at something new. Good thing they did. Located in the tiny town of Fox, Alaska (around 20 minutes outside of Fairbanks), this restaurant and brewery makes its own grub and beer, and it’s easily one of the best meals you’ll find in the greater FAI area. The design of the place is refreshing as well, and the public is welcome to take a tour of the connected brewery at no charge. Looking for a recommendation? The Pub Pommes to get things going, the Halibut Tacos to stuff you and a walk around the brewery to make you feel a little better for overeating.

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2) Seven Glaciers

Perched high atop Alyeska Hotel, this AAA Four Diamond restaurant is a serious treat — from both a visual and deliciousness standpoint. I’ve never been to a place with a more astonishing entrance. In order to get here, you’ll need to step foot into a scenic tram that lifts you up the mountainside in a matter of minutes. The views of the surrounding mountain ranges in Girdwood (~45 miles outside of Anchorage) are downright breathtaking, and the food inside may be even more so. Reserve a table with a windowside view, and feel free to opt for any of the (seriously amazing) fish dishes. You’re in Alaska, after all!

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3) Moose’s Tooth

If you’ve heard of one restaurant in Alaska through the so-called grapevine, chances are it’s Moose’s Tooth. Situated in Anchorage, this place is widely known for having the best pizza in the state, maybe even the country. That’s a pretty tall claim, and after trying it for myself, I’d say the place mostly lives up to the hype. The vibe is laid back, the staff is warm and welcoming, and the service is top-notch. The food is truly world class; the only pizzas that I’ve had to rival this one in taste come from (the now defunct) Giordano’s in Chicago and Mellow Mushroom in North Carolina. Make no mistake — the sheer quantity of wild topping options is worth making a trip for, and I can guarantee you won’t leave disappointed.

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4) Lemongrass

Thai food… in Fairbanks? It’s true! In fact, Fairbanks is fairly well known for having a staggering array of Thai food options, and Lemongrass is a particularly delectable choice. As I alluded to earlier, this one’s tucked slyly within a strip mall of sorts, so it’s fairly easy to overlook. You’d be smart to look it up, though, as everything at the table I sat at drew wide smiles from those eating. Naturally, the Pad Thai was remarkable, so even if you aren’t feeling too adventurous, you can still snag a great Thai meal in Alaska.

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5) Crow’s Nest at the Captain Cook Hotel

I’ll be honest with you; this one’s worth stopping at just for the view. The food is delicious, mind you, but it’s a bit pricey and not quite as on-point as the grub at Seven Glaciers. But if you’re looking for the most impressive view of Anchorage from an eatery in the city, this is it. It’s located on the 20th (i.e. top) floor of The Captain Cook Hotel, and the overlook of the city (shown above) is simply astonishing. Be prepared to pay said view, though, and make absolutely sure you and your partner save room for the Bananas Foster dessert. That alone is worth making a reservation for.

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Obviously, there are a lot more than five great places to eat in the state of Alaska. Southside Bistro, Bear Tooth Theater Pub and Middle Way Cafe all come highly recommended in the Anchorage area, while Big Daddy’s BBQ in Fairbanks calls itself the most northerly place to get southern barbecue. Got any other great recommendations for food in Alaska? Shout ’em out in the comments section below!

[Images provided by Dana Jo Photography]

My trip was sponsored by Alaska Travel Industry Association, but I was free to report as I saw fit. The opinions expressed in this article are 100% my own.

North Korea resumes construction on world’s most hideous hotel

by Justin Delaney on

North Korea is the hermit kingdom; a strange land of mass games and dear leaders trapped in a 1950’s communist time warp. While they may not have modern supermarkets or PlayStation 3, North Korea does have one of the tallest hotels in the world, and it looms high above Pyongyang like a tribute to the ill advised whims of dear leader Kim Jong Il.

According to USA Today, The pyramidal Ryugyong Hotel began construction in the late nineteen-eighties and was spearheaded by Orascom – an Egyptian architectural firm. Construction of the abominable structure was halted after the fall of the Soviet Union. Without Soviet subsidies, North Korea could not afford the expensive project. Today, the 105 story building is again under construction and may cost as much as two billion U.S. dollars to complete, or 5% to 10% of estimated North Korean G.D.P. Relative to American G.D.P. terms, it would be like the United States sinking over a trillion dollars into a hotel project.The windowless and hollow structure stood vacant for decades, just towering above the city. It is a metaphorical monument to a country plagued by its own agitprop claims of supremacy and the central lunacy that drives this madness further. The North Koreans even spent years denying the structure’s existence, removing it from photographs and excluding it from maps of Pyongyang. Too much shame, it seems, in the very obvious failure.

When completed, the Ryugyong Hotel will have 3000 rooms and roughly 3.9 million square feet. The original plan entailed three wings rising at 75 degree angles capped by several revolving restaurants and an observation deck at the hotel’s pinnacle. For a country that just opened its first burger spot last year, it is very ambitious stuff.

Many architects in the international community are questioning the suitability of the project. Bruno Giberti, a professor at California Polytechnic State University’s department of architecture, called it “the worst building in the world.” The European Union Chamber of Commerce in Korea deemed the structure irreparable almost fifteen years ago, citing curving elevator shafts. From a humanitarian standpoint, a nation filled with malnourished children could probably make better use of the estimated $2 billion project.

With elevator shafts more crooked than Kim Jong Il’s epic golf game and decades of structural decay, the “ghostscraper” faces a long road to accepting its first guests. North Korea plans to open the hotel to coincide with the posthumous 100 year birthday of Eternal President Kim Il Sung in late 2012.

flickr images via John Pavelka

Carnival Celebrations to draw 750,000 (insanely crazy) visitors

by Chris Owen on

The ultimate escape, Rio’s Carnival is open with celebrations expected to draw over 750,000 visitors, both foreign and Brazilian spending over $500 million.

“As the king of the party, I declare the Carnival of Rio de Janeiro is officially open,” this year’s king Milton Rodrigues said. “Long live Rio, and long live Carnival!”

It’s a spectacle unlike any other where the normal world is turned upside down, rules go out the window and anything goes. For five days the city will be covered in confetti and music with dancing and music parades the order of the day.

While much of Carnival is about being someone else for a while as men dress like women and poor people dress like kings, some attending the event want to stay just who they are.Celebrities expected to attend include Pamela Anderson, added to the VIP party guest list just last wee along with Cameron Diaz, Demi Moore and Nicole Kidman. They will be looking for space in the coveted VIP boxes that overlook all the action along with Jude Law, Leonardo DiCaprio and more.

Off to a less than smooth start when 15 revelers were electrocuted and killed by a fallen power line, Carnival celebrations and festivities are in full swing now with highlights of this year’s festival to include appearances on parade floats by Brazilian supermodel Gisele Bundchen, who will pose as Venus de Milo, and local singing legend Roberto Carlos.

Flickr photo by snappybex

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