imageHONG KONG: Hong Kong flagship carrier Cathay Pacific Airways said Friday it will pay Can$1.5 million ($1.45 million) to Canadian authorities to settle an air cargo price-fixing case.

The Competition Bureau of Canada in 2006 started an investigation into the airline which it said was involved in a scheme to fix prices on navigation surcharges on international air cargo shipments to and from the country between 1999 and 2003.

The bureau's investigation has also resulted in eight criminal convictions and fines of over Can$24 million, where Air France, Qantas, British Airways and Korean Air, among other airlines, have pleaded guilty to fixing air cargo surcharges.

"Cathay Pacific has pleaded guilty to one count with respect to price fixing under the Canadian Competition Act," the airline said in a filing to the Hong Kong stock exchange where it is listed.

The airline also said it is "satisfied that it has taken the best possible corrective actions" and is committed to complying with "all applicable laws".

Cathay paid Australian authorities $12.29 million last December to settle a price fixing case. The Australian Competition and Consumer Commission alleged the airline had fixed prices on fuel surcharges and security surcharge rates applied to air cargo.

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