Qantas reaches settlement with NZ Commerce Commission on freight cartel

written by | March 21, 2011
Qantas has agreed to a NZ Commerce Commission fine.

Qantas has announced a settlement with the New Zealand Commerce Commission (NZCC) in relation to price fixing activities within its freight division between 2000 and 2006.

While Qantas hasn’t specified the exact terms of the settlement, both parties agreed to recommend to the New Zealand High Court that the airline pays a fine of NZ$6.5 million, representing a 50 per cent discount for Qantas’s cooperation with the NZCC in its investigation of the cartel.

“Qantas has previously resolved its liability to regulators in the US, Australia, Canada, Korea and Europe for its freight division’s conduct. In each case the fine imposed on Qantas reflected a considerable cooperation discount,” the airline said in a statement.


The High Court penalty hearing is set for April 11, at which time the airline will plead guilty to participating in the cartel with other international airlines, including Air New Zealand. Qantas has maintained that it will “continue to cooperate fully with the Commission in its prosecution of other airlines”.

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