Air Transport

British Airways (BA) and its Oneworld alliance partner Qantas Airways have agreed to pay millions of dollars in fines in Australia to settle charges of price-fixing in their international cargo operations.

The Australian Competition and Consumer Commission (ACCC) says in a statement that it has today instituted separate proceedings in the Federal Court in Sydney against the two airlines seeking penalties for price-fixing between 2002 and early 2006.

It says settlements have been reached with both airlines on recommended financial penalties. It does not say what BA has agreed to pay in fines but Qantas says in a statement of its own that it has agreed to pay a fine of A$20 million ($12 million).

Both airlines, along with several others, had already been found guilty by US authorities of taking part in an international cargo price-fixing conspiracy.

The ACCC says in its statement: "The airlines are the first to be proceeded against in Australia because both came forward and voluntarily made admissions under the ACCC's Co-operation Policy," says ACCC chairman Graeme Samuel.

"The ACCC continues to investigate other airlines, some of which are assisting voluntarily, while others are not. The ACCC expects to be able to resolve its investigations with other co-operating airlines shortly."

It says the recommended penalties for BA and Qantas "reflect the serious nature of the cartel contraventions and, in the case of Qantas, its very large share of the Australian segement of the market. However, they also reflect the parties' high and continuing co-operation in the ACCC's investigation."

Qantas CEO Geoff Dixon says: "Qantas is one of the first airlines to settle its liability in Australia. Qantas apologises unreservedly for the conduct of the employees involved. All Qantas employees are expected to comply with the law and we take any failure to comply very seriously."