Qantas in more strife over freight charges.

[Nigel C]

After they were found guilty the first time, I guess it's only natural there would be other countries willing to prosecute.
The shareholders won't be happy!

From http://business.smh.com.au/business/...0708-ddcd.html

We're guilty, again: Qantas

Matt O'Sullivan
July 9, 2009

QANTAS has admitted to illegally fixing air cargo charges in a third country, in the latest chapter of the unravelling of a global cartel that is set to climax shortly when European authorities are expected to hand down a heavy fine to the Australian carrier.

Qantas has already been fined $C155,000 ($169,000) in Canada's Federal Court after it pleaded guilty to participating in a freight cartel. The fine is at the low end of available penalties for price fixing - up to $C10 million for each count - probably because Qantas has a tiny share of the Canadian air freight market and because it co-operated with authorities.

Qantas admitted that its freight division fixed surcharges on cargo on routes from Canada between May 2002 and February 2006. The airline's freight operations trucked cargo from Canada to the US for shipment to Australia and other countries.

The Australian carrier is the fourth airline to be convicted in Canada. The others are Air France, KLM and the Dutch carrier Martinair.

The results of the European Commission's investigation into the freight cartel involving more than 30 airlines is expected as soon as September. Qantas has admitted to Australian regulators that it expects to pay a "very substantial penalty" in Europe for its part in the cartel.

Qantas said in a statement that the settlement in Canada absolved the airline and its current employees of any further liability. However, it did not state whether former employees who worked at Qantas's freight division during the four-year period would avoid charges.

Apart from Europe, the airline is still under investigation in several countries including South Africa and South Korea. New Zealand competition authorities also began legal action against Qantas in December for its part in the global air freight cartel.

After paying a $US61 million fine in the US in 2007, Qantas set aside a further $40 million to cover penalties in Australia, Europe and New Zealand.

Half of that was handed over in December when Qantas was fined $20 million in Australia for the price fixing, after it struck a deal with the Australian Competition and Consumer Commission. The airline also still faces class actions in Australia and the United States.

So far Qantas is the ACCC's biggest scalp in a two-year investigation that has been the largest and most expensive in its history. However, Singapore Airlines and Cathay Pacific are both fighting the competition regulator's claims in the Federal Court that they broke the law by colluding with rivals to set high freight and security surcharges.

The global cartel originated in 1996 when at least 17 airlines, including Qantas, introduced freight levies on air cargo to counter rising jet fuel costs.