The US Department of Justice has ruled that a man accused of fixing the cost of freight services to and from the US will serve an eight-month prison sentence.

Keith Packer, a former commercial general manager for the cargo operation at British Airways (BA), admitted to fixing prices and will face jail time as well as a US$20,000 (€14,200) fine.

The plea bargain made with prosecutors means that Mr Packer avoided the maximum punishment possible of 10 years in jail and a US$1m (€710,000) fine.

The antitrust investigation into price-fixing cartels has already handed fines to Korean Air Lines, Japan Airlines, Air France, Cathay Pacific and Qantas. Additionally, four current and former BA executives have been charged with price fixing offences relating to a scheme involving Virgin Atlantic. BA owned up to its role and was fines US$271.5m (€192.7m) by the US authorities and the Office of Fair Trading in 2007.

'Those who conspire to cheat US businesses and consumers by fixing shipping rates will be held accountable,' said Scott Hammond, the deputy assistant attorney general.

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