Qantas Airways Agrees to Plead Guilty and Pay $61 Million Fine for Cargo Price Fixing

11/29/07 12:26 PM Posted by Jennifer KessingerFiled in: DOJ | Enforcement | International Trade

The U.S. Department of Justice (DOJ) reported on November 27, 2007 that Australian-based Qantas Airways Limited has agreed to plead guilty and pay a $61 million criminal fine for its role in a conspiracy to fix rates for international air cargo shipments. According the the charges filed on 11/27/07 in the U.S. District Court for the District of Columbia, Qantas engaged in a conspiracy to eliminate competition by fixing the rates for shipments of cargo to and from the United States and elsewhere from as early as January 2000 to February 2006.

The DOJ reports that during the time period of the felony charge, Qantas was the largest carrier of cargo between the United States and Australia and earned more than $600 million from its cargo flights to and from the United States. Under the plea agreement, which is subject to court approval, Qantas has agreed to cooperate with the DOJ in the ongoing investigation.

Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division, stated:

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 shipment of consumer products by air transportation is critical to our global economy. Our investigation into this important industry will continue, and we will aggressively pursue those who engage in criminal conduct that harms American consumers.

In August 2007, British Airways Plc and Korean Air Lines Co. Ltd. pleaded guilty and were sentenced to pay separate $300 million criminal fines for their roles in conspiracies to fix the prices of passenger and cargo flights

The ongoing investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Federal Bureau of Investigation.

Tags: Cargo