Freight Transport

Polar Air Cargo LLC has reached an agreement with the US Dept of Justice (DOJ) Antitrust Division to resolve a previously disclosed investigation into rates and fuel surcharges for commercial air cargo services to Australia

The agreement is with Polar LLC, a wholly owned subsidiary of Atlas Air Worldwide Holdings, not to be confused with Polar Air Cargo Worldwide, AAWW's majority owned operating subsidiary, which is not implicated

The US$174 million fine is payable in instalments over five years

The agreement is subject to approval and acceptance by the United States District Court for the District of Columbia

The agreement is related to shipments from the US to Australia during the period January 2000 to April 2003, covering conduct by former employees of Polar LLC

William Flynn, president & chief executive officer of AAWW, pointed out that the investigation involved conduct that began in 2000, almost two years before Polar LLC was acquired by AAWW, with final DOT approval of the acquisition not being granted until late-May 2002 The matter occurred before Polar LLC's emergence from bankruptcy in July 2004, and relates to a period more than seven years ago

He said it is also important to note that none of Atlas Air, Polar Air Cargo Worldwide or any of AAWW's current board or senior management were involved in or are implicated in the investigation