Qantas admits to price-fixing
A news.com.au report says that Qantas has admitted to price-fixing in its cargo and freight services – less than 24 hours after British Airways was fined a total of $643.96m price-fixing and collusion.
During the investigation into the collusion between BA and Virgin Atlantic, Qantas management handed over documents to the US Department of Justice (DoF) showing breaches in competition law.
The breaches relate to price-fixing on fuel-surcharges on the airline’s non-passenger flights.
Qantas management denied involvement in price-fixing on passenger services.
In a document from the failed takeover bid by Air Partners Australia dated February 2007, the DoP investigation revealed the breaches.
“During this investigation Qantas learned that the practice adopted by Qantas Freight and the cargo industry generally, to fix and impose cargo fuel surcharges is likely to have breached relevant competition laws,” the document said.
“Qantas has been co-operating fully with all regulators and will continue to provide information to assit with their investigations.”
The document also said that “Qantas expects that it will take at least 12 months before it is possible to quantify any direct or indirect liability associated with these matters”.
Report by The Mole
John Alwyn-Jones
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