POLAR Air Cargo is being sued by a forwarding customer for US$6 million losses with eight allegations, including racketeering, fraud, conspiracy and unfair trade practices.
If the case is proved, polar Air Cargo, the subsidiary of Atlas Air (51 per cent) and DHL Express (49 per cent), could be faced with a payment of some $18 million, plus costs, reports London's The Loadstar.
In a series of shocking claims filed last week, Cargo on Demand (COD), a small New York-based forwarder, claims Polar violated the US Racketeer Influenced and Corrupt Organizations Act (RICO).
COD also alleges several other forwarders were treated the same way.
In 2014, COD and Polar signed a blocked space agreement (BSA), but COD was advised by member of Polar's management it would also be required to pay third-party companies 'consulting fees'.
These went to five or more companies, in some cases found to have Polar's management as principals, including COO Lars Winkelbauer and sales and marketing VP Thomas Betenia.
Mr Winkelbauer had left Polar in 2014 to go to DHL for four years, but returned to Polar in 2018.
Fees were typically between $0.25 and $0.50 per kg, in addition to the BSA rate.
Typically, alleges COD, the requests for 'consulting fees' were made by Abilash Kurien, Polar's vp of marketing, revenue management and network planning, and, according to one exhibit filed with the court, Mr Kurien emailed COD: 'bro, here is the updated sheet - pls use this for distribution. Please make sure amounts are transferred the way I have laid it out. Total $41,291.93, Frank $1,175.69, maaz $1,000.00, per person $7,823.25.
COD's filing adds: 'The consulting fee requirement was articulated to COD by multiple members of Polar management over the course of seven years. Similarly situated Polar customers known to COD were also required to pay a consulting fee.'
COD said it regarded the fees as akin to a hotel resort fee - a payment not included in the quoted rates.
COD claimed it was unable to pass on the fees to customers as they weren't part of the freight rates, and that, between 2014 and 2021, it paid nearly $4 million in 'consulting fees', typically by monthly wire.
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If the case is proved, polar Air Cargo, the subsidiary of Atlas Air (51 per cent) and DHL Express (49 per cent), could be faced with a payment of some $18 million, plus costs, reports London's The Loadstar.
In a series of shocking claims filed last week, Cargo on Demand (COD), a small New York-based forwarder, claims Polar violated the US Racketeer Influenced and Corrupt Organizations Act (RICO).
COD also alleges several other forwarders were treated the same way.
In 2014, COD and Polar signed a blocked space agreement (BSA), but COD was advised by member of Polar's management it would also be required to pay third-party companies 'consulting fees'.
These went to five or more companies, in some cases found to have Polar's management as principals, including COO Lars Winkelbauer and sales and marketing VP Thomas Betenia.
Mr Winkelbauer had left Polar in 2014 to go to DHL for four years, but returned to Polar in 2018.
Fees were typically between $0.25 and $0.50 per kg, in addition to the BSA rate.
Typically, alleges COD, the requests for 'consulting fees' were made by Abilash Kurien, Polar's vp of marketing, revenue management and network planning, and, according to one exhibit filed with the court, Mr Kurien emailed COD: 'bro, here is the updated sheet - pls use this for distribution. Please make sure amounts are transferred the way I have laid it out. Total $41,291.93, Frank $1,175.69, maaz $1,000.00, per person $7,823.25.
COD's filing adds: 'The consulting fee requirement was articulated to COD by multiple members of Polar management over the course of seven years. Similarly situated Polar customers known to COD were also required to pay a consulting fee.'
COD said it regarded the fees as akin to a hotel resort fee - a payment not included in the quoted rates.
COD claimed it was unable to pass on the fees to customers as they weren't part of the freight rates, and that, between 2014 and 2021, it paid nearly $4 million in 'consulting fees', typically by monthly wire.
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