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

Related Stories


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.

%Gallery-118373%
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!

%Gallery-117641%
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.

%Gallery-118376%
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.

%Gallery-118377%
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.

%Gallery-118378%
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.

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

Related Stories


Alaska Adventure Cruise: For people that hate even the idea of a cruise

by Chris Owen on

You’re a packer, hiker, camper, flier or photo freak so “Alaska” you’re good with, “Adventure you’re fine with too but the word “Cruise” sends your brain into unpleasant places. Travel to you might be getting to interesting places you have never been or returning to awesome memories once again. On your own. With good gear. You choose Independent over guided when you can. Adventure activities turn you on.

About the last place in the world that you want to be is on a cruise ship. The idea of herds of people bellying up to the buffet, playing bingo or climibing a simulated rock wall make you laugh outloud. You’ll catch dinner, look to the stars at night for entertainment and do a real mountain if given half a chance.

Still, cruise vacations have become more popular than ever and major cruise lines are looking for ways to make their line unique. You could care less.

Some build new, larger ships packed with more onboard programming no one passenger could possibly take advantage of. So what? You hate them.

Others focus on their existing fleet, refining what they do with a keen eye on what their target passenger is looking for, molding what they do to match. Again, give you a home where the buffalo roam and you’re in heaven.

But wait.

Now there is new InnerSea Discoveries, an up-close personal adventure experience that just happens to travel on water.

A tiny, 2-ship cruise line, InnerSea Discoveries does what they call “un-cruises”. In their inaugural season which starts in May, the line will do Alaska Adventure cruises for up to 49 passengers (that’s forty-nine, not 4,900) that are about as far away from the big cruise ship experience as you can get and still be floating.

Actually, the floating part, in this application, can provide a better travel experience than even the most adventurous independent traveler could get.

“The great success of the Ultimate Adventure proves there is a real demand for this type of active adventure in Southeast Alaska,” said Tim Jacox, of InnnerSea Discoveries. “People are choosing to spend two weeks exploring the remote wilderness-places they’ve never heard of-and that’s the beauty of it. It’s unrushed, uncrowded and truly unbelievable.”

First difference: No Internet. This will knock out about half the regular cruising public. You? Mr.Ms Adventure Traveler person? No big deal.

These handy-sized ships visit ports that big ships can’t get to, stop along the way were big ships can’t go and see wilderness big ships and the hordes of people on them scare away. In fact, the line’s Green Guardians program requires their small groups of passengers to “leave only footprints behind” while drinking in nature and it’s wild inhabitants.

“We believe it is a privilege to explore the world’s natural wonders, step ashore in remote destinations and meet the people living in these breathtaking wilderness environments. While employing sustainable travel principles and management practices to ensure we are responsible stewards of the environment is a core part of our business, we also strive to leave a positive impact on the people and communities we visit around the world. InnerSea Discoveries’ office and vessel personnel support the following organizations with donations or volunteer time.” says the line’s Green Guardian pledge.

Each trip, starting at $1795 per person, is different too with a choice of personalized Alaska Inside Passage itineraries featuring a 7-night Juneau to Ketchikan Eastern Coves or a 7-night Ketchikan to Juneau Western Coves sailing. Ultimate adventurers can combine the 2 cruises into a 14-night round-trip cruise from Juneau or experience 900-miles of the Inside Passage on a 14-night cruise between Seattle to Juneau (or reverse).

Unlike massive cruise liner sailings, most of what would be called “shore excursions” and carry an extra fee on big ships is included in the price.

Whale-Watching? You are in a small ship that can get up close. No charge.

Kayak Adventure? They have plenty for everyone. Free.

Inflatable boat excursions, Hiking, Caving, Beachcombing, Snorkeling, Birding, Glacier Viewing; all included.

Want to talk gear?

The ship’s kayaking fleet includes Looksha T and Manitou II kayaks, Surftech Softop and Stand-up Paddle Boards, Black Diamond trail compact trekking poles, REI EcoSensitive, lightweight and kids daypacks. If overnight-camping they provide the tent or forest service cabin, sleeping bags, food/drink, binoculars, cooking supplies, walking sticks, backpacks and a radio to stay in contact with the ship.


There are optional expedition activities available varying from “LeConte Glacier Floatplane Tour” ($200) to “Whale Island Overnight Camping” ($150). All are rated from 1 to 3 on an activity level scale with 1 being excursions that require basic physical fitness and 3 being excursions that require exertion, agility, sure-footedness on hikes and/or stamina for the most challenging workout.

No, the normal cruise ship passenger would not be along for this ride.

On board there are things to do, but not like the big ships. That’s not what this is all about.

No big pool:You were just in the ocean in a kayak or snorkeling or doing a polar bear swim.

No tight schedule: They pride themselves on flexibility and stop for a pod of orcas or some bubble-feeding humpbacks.

No formal night: It’s casual all the way here with more of a explorers-come-back-to-basecamp feel aboard ship.

No rock-climbing wall: You just climbed up the side of a mountain if you wanted to.


Retuning from the wilderness, passengers will find adequately appointed cabins feature Queen or twin beds, private bath with shower and a view window. Most are double occupancy but each ship has solo cabins as well. Meals include a healthy menu featuring locally-caught seafood . You may have had a hand in dinner earlier in the day. A hot Espresso, coffee, tea bar is open 24-hours a day too.

But here, the ship is a place to come back to, like a base camp from which the few along for the adventure return to at night. In this application, a floating camp makes sense to even the most hard-core travelers. Small ships sail up close to glaciers, whales, signts and sounds that people can not get to on foot or big cruise ships would scare off if they could even get close enough to see.

%Gallery-118407%

Images courtesy of InnerSea Discoveries

Related Stories


Baggage Scanning Technology Evolving

by Chris Owen on

The latest in baggage scanning technology looks kind of like the CT scanner hospitals use to to look inside the human body much like a loaf of bread, one slice at a time. Transportation Security Administration (TSA) officials hope this new tool will do a better, faster job detecting explosives in baggage.

The Explosives Detection Systems (EDS) machine runs with CT scan technology, modified to detect explosives in baggage and taking the place of TSA agents manually swabbing each bag. Fully-automated, the machine can scan at the rate of 240 bags an hour. TSA has installed 455 of the machines in airports since January.
Rather than multiple 2D images in traditional x-ray scanners, this new generation CT-like scanner displays dynamic images using a baggage scanning technology called Array Motion Imaging (AMI). AMI presents a moving image of baggage to the machine operator, as though someone were turning it around from side to side or up and down, enabling them to see all areas of the bag.

In the past, careful packing might have allowed prohibited items in baggage to pass by TSA machine operators not “seeing” them. This scanning technology lowers the odds of that happening substantially with new, multiple views as baggage passes though the system.

“It can be deployed anywhere,” said Jeffrey Allison, TSA acting federal security director told thenewsstar.com. “It is portable and can be moved from one location to another. It is a great service for the passengers and it reduces the number of false-type alarms.”

Built by Reveal Imaging, the $340,000 EDS machines are being paid for with funds from the American Recovery and Reinvestmant Act of 2009, a $30 million fund earmarked to improve airport security across the nation in all areas.

TSA began using advanced imaging in 2007. An evolving program, imaging can detect a wide range of threats to security in a matter of seconds to protect the flying public. Imaging is an integral part of TSA’s effort to continually look for new technologies that help ensure travel remain safe and a step ahead of evolving threats.

The TSA imaging program encompasses more than just baggage, it also includes the “scanning” of people as well. Too big to fit through a machine, human beings are handled differently, using a a variety of non-invasive methods that are preferred over unpopular pat-downs.

Since imaging technology has been deployed at airports, over 99 percent of passengers choose to be screened by this technology over alternative screening procedures. According to a CBS poll, 4 out of 5 Americans support the use of advanced imaging at airports nationwide.

Additionally, passengers with joint replacements or other medical devices that would regularly alarm a metal detector often prefer this technology because it is quicker and less invasive than a pat down.

“We are always looking for new technology and procedures that will both enhance security while strengthening privacy protections,” TSA Administrator John Pistole said.

Reveal Imaging photo

Related Stories