QANTAS
has agreed to plead guilty and pay a $US61 million ($69.4
million) fine in a US court after being charged with price-fixing
international air cargo rates for more than six years from January 2000.
The
US Department of Justice filed charges against Qantas Airways Limited
in the US District Court in the District of Columbia in Washington DC
today.
In a statement released on the ASX today, Qantas apologised unreservedly for "wrong conduct".
"We understand more than 30 other airlines are included in these investigations," CEO Geoff Dixon said.
Money raked in
The department accuses Qantas (qan.ASX:Quote,News) of engaging in a
"conspiracy to eliminate competition by fixing the rates for shipments
of cargo to and from the United States and elsewhere from at least
January 2000 to February 2006".
During that time Qantas was the largest carrier of cargo between the US
and Australia and made more than $US600 million ($683.7
million) from its cargo flights along the route.
Under the plea agreement, which still needs to be approved by the
court, Qantas has agreed to cooperate with the ongoing US
investigation.
"Qantas's 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," assistant Attorney-General Thomas O Barnett
said.
Other airlines targeted
Mr Barnett, who is in charge of the US Department of Justice's
antitrust division, said: "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," he said.
Qantas was charged with carrying out the price-fixing conspiracy by
participating in meetings and talks in the US and elsewhere to discuss
the cargo rates to be charged on trans-Pacific routes to and from the
US.
It also engaged in meetings and talks to enforce the agreed rates.
The US Justice Department said in August, British Airways and Korean
Air Lines pleaded guilty and were sentenced to pay separate $300
million criminal fines for their role in price-fixing on cargo prices.
by Stafanie Balogh of New York | Herald Sun | News.com.au | SOURCE |
http://www.news.com.au/business/story/0,23636,22835156-14334,00.html
