Qantas fined $61m for price-fixing
2007-11-29
Qantas Airways is to plead guilty to participating in a cartel to fix air cargo prices and will pay a US$61 million fine, the US Department of Justice said.
The Australian carrier is the third to plead guilty to participating in the conspiracy to fix fuel surcharges on cargo flights.
In August, British Airways and Korean Air Lines each agreed to pay fines of $300 million each for their roles in the air cargo case and separate investigations involving fuel surcharges on passenger flights.
As part of the plea agreement, Qantas agreed to co-operate with the Department of Justice's ongoing investigation into the matter.
Qantas' guilty plea sends a clear message that those who engage in price-fixing and other forms of illegal collusion will pay a heavy price for their crimes.
The carrier is charged with fixing prices by taking part in meetings, conversations and communications in the US and elsewhere to discuss what rates would be charged on cargo flights.
The air cargo conspiracy came to light after Lufthansa came forward as a whistle-blower last year. The separate conspiracy to fix fuel surcharges on passenger flights was revealed after Virgin Airlines approached authorities earlier this year.
Qantas did not participate in the second conspiracy.
From: cargonewsasia
