Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Qantas fined for price fixing

SYDNEY, December 11 – Australia\’s national airline Qantas was Thursday fined 20 million dollars (13.1 million US) after admitting it engaged in price fixing linked to international cargo fuel surcharges.

An Australian federal court in Sydney also fined British Airways five million dollars after it admitted an illegal arrangement in the airfreight market over the same time period with Germany\’s Lufthansa.

Qantas had in October agreed to pay the penalty to settle the case brought against it by the country\’s competition watchdog.

The Australian Competition and Consumer Commission (ACCC) had brought the claim against Qantas and British Airways, which began merger talks earlier this year, seeking penalties over fuel surcharges on cargo from 2002 to 2006.

The penalties sent a strong message to cartels, said ACCC chairman Graeme Samuel.

"Cartels — particularly those that are engaged in by large businesses with broad application over a period of time — have a significant effect on consumers," he said.

"They are an unseen fraud on the community that must be uncovered and punished."

Qantas admitted striking "understandings" with other airlines over the cargo fuel surcharges, but said earlier that the price fixing did not relate to its passenger services.

The Australian flag carrier had undertaken an exhaustive probe of the incidents after being made aware of the conduct, Samuel said.

Advertisement. Scroll to continue reading.

Both Qantas and British Airways have been restrained from engaging in similar conduct for three years and ordered to pay 200,000 dollars each towards the legal costs of the ACCC.

Qantas\’ former chief executive Geoff Dixon in October apologised "unreservedly for the conduct of the employees involved" in the price fixing incident.

Foreign regulators have recently brought a number of cases against airlines in relation to cartel conduct involving air freight.

In November 2007 Qantas apologised for engaging in price-fixing activity on cargo in the United States and agreed to pay a 61 million US dollar fine after an investigation by the US Justice Department.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...