Qantas admits price-fixing 'likely'

Status
Not open for further replies.

kamchatsky

Established Member
Joined
Mar 8, 2006
Messages
3,034
Points
605
Qantas admits price-fixing 'likely' | NEWS.com.au Business

--------------------------------------------------------------

Qantas admits price-fixing 'likely'

By Mark Schliebs
August 03, 2007 06:59am

Article from:


QANTAS may be facing massive penalties after admitting it was "likely" it had engaged in price-fixing of the type that saw British Airways fined a total of $643.96m for anti-competitive behaviour on Wednesday night.

During the trans-Atlantic investigation into the collusion between BA, Korean Air Lines, Virgin Atlantic and Lufthansa to set prices, Qantas management handed over documents to the US Department of Justice (DoJ), which showed possible breaches of competition law.

Do you know more? Email us at news@news.com.au with reports, tip-offs, and pictures or SMS / MMS 0429 300 245
In a later company document from the failed takeover bid by Air Partners Australia dated February 2007 and seen by NEWS.com.au, Qantas admitted the DoJ investigation had found likely breaches in non-passenger services.

"During this investigation Qantas learned that the practice adopted by Qantas Freight and the cargo industry generally, to fix and impose cargo fuel surcharges is likely to have breached relevant competition laws," the document said.

"Qantas has been co-operating fully with all regulators and will continue to provide information to assist with their investigations."
Previous to this Qantas had only admitted that there "may" have been breaches.

Qantas management has categorically denied involvement in price-fixing on passenger services.

In February of this year court cases were launched in the US and Australia alleging anti-competitive Qantas behaviour in the freight and cargo sector.

The sums being extracted from British Airlines in the US and Britain would give the national carrier reason to worry.

Qantas has refused to be drawn on the matter of damages except that it "expects that it will take at least 12 months before it is possible to quantify any direct or indirect liability associated with these matters".
 
AMX001595_Travel-Insider_1100x260

JohnK

Veteran Member
Joined
Mar 22, 2005
Messages
43,731
Points
3,070
I know this is more to do with freight rather than passenger movement but still there is a very easy solution.

Ban fuel surcharges worldwide. Force the airlines to include the cost of fuel in the price of an airfare and then they can do what they like with their airfares.
 

NM

Enthusiast
Moderator
Joined
Aug 27, 2004
Messages
16,389
Points
1,295
Qantas
LT Gold
Virgin
Red
JohnK said:
I know this is more to do with freight rather than passenger movement but still there is a very easy solution.

Ban fuel surcharges worldwide. Force the airlines to include the cost of fuel in the price of an airfare and then they can do what they like with their airfares.
You have my support that recommendation. But unfortunately there is no entity that can enforce such a world-wide ban :evil: .
 

browski

Established Member
Joined
Sep 8, 2004
Messages
1,578
Points
5
Hmmmm, I'm not so sure about that NM. Worldwide maybe not but domestically here in Australia I think airlines must advertise their total cost of the flight - not the pre "tax" nor the pre fuel surcharge cost of the flight
When airlines advertise the price not inclusive of a fuel surcharge, they are in breach of advertising guidelines but we currently have a lack of will to enforce the law.

We must remember that Fuel Surcharges are not a gov't tax and their existance is merely a ploy by the airlines to reduce their losses off Award flights. (Can anyone give another reason?)
The lack of enforcement exists because GST is calculated on the entire operating cost which includes the Fuel Surcharge so the gov't at least receives their full revenue.
 
Now with contactless delivery, shop online to get drinks delivered to your door or pick up in-store in 30 minutes. Lowest Liquor Price Guarantee. Biggest Range.

AFF Supporters can remove this and all advertisements

stryker

Member
Joined
Sep 28, 2006
Messages
454
Points
140
browski said:
We must remember that Fuel Surcharges are not a gov't tax and their existance is merely a ploy by the airlines to reduce their losses off Award flights. (Can anyone give another reason?)

UA for one does not engage in this disreputable practice (ask me how I know).
 

wallacej

Active Member
Joined
Dec 3, 2006
Messages
802
Points
10
stryker said:
UA for one does not engage in this disreputable practice (ask me how I know).

I'll bite... Stryker... how do you know?:p

 
Status
Not open for further replies.
Top