Price-fixing probe has airline executives running scared

Toronto - The global probe into the fixing of fuel surcharges has sent jitters through the aviation sector with executives giving major conferences in the US a miss at the advice of their lawyers.

They have been running scared since the biggest annual industry conference in the US brought an encounter they had not bargained for.

At the CNS conference in San Diego in April, FBI agents delivered subpoenas to airline executives in connection with the ongoing investigation into allegations of price-fixing.

"We might see fewer industry meetings take place in the US while the dust is settling," one industry analyst said.

However, the investigation has more far-reaching ramifications than attendance at industry events. Initiatives are in danger of losing momentum because executives are wary of participating in gatherings that may be perceived to have commercial repercussions.

"I have seen industry groups lose steam since the investigation unfolded," said Dave Wirsing, managing director of Phoenix Marketing.

High profile International Air Transport Association meetings nowadays kick off with the reading out of guidelines covering issues that may not be discussed for fear of sparking accusations of collusion. At key meetings lawyers are present.

Industry initiatives such as Cargo 2000 have to pay closer attention to the potential commercial ramifications of their work. The group is consulting with legal counsel on whether there are any problems with formulating a standard cut-off time for an airport.

"In the past we wouldn't have thought twice about this," a person close to the project said.

Wirsing said industry associations should take a proactive position to demonstrate that their work benefits the air cargo community and avoid anything that may have competitive aspects.