Airline Qantas executives risk up to 10 years in jail if they continue to engage in cartel price- fixing practices, Australia's competition watchdog said on Wednesday.
The European Commission announced earlier on Wednesday to fine Qantas and 10 other airlines one billion U.S. dollars for fixing air cargo prices.
The Commission has found Qantas, British Airways, Air France, Japan Airlines and seven other carriers co-ordinating action on surcharges for fuel and security between 1999 and 2006.
Qantas received one of the smallest fines, 12.27 million U.S. dollars, for its part in co-ordinating a cartel that covered flights within the European Economic Area.
A Qantas spokesman told ABC News that the airline has received official advice on the fine and is now examining the European Commission's decision.
Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel said that from July 2009, the ACCC viewed serious cartel conduct as criminal, and could push for jail terms of up to 10 years and fines of 10 million U.S. dollars or more.
"You'd have to be a really stupid executive to be involved in cartel activity after July last year," Samuel told ABC TV on Wednesday. "The triple element of that now applies is that if you engage in this sort of activity, don't worry about reputations and don't worry about fines, you now face 10 years in jail."
It is not the first time Qantas has been hit for anti- competitive behavior. In 2007, the airline was fined 40 million U. S. dollars for price fixing in the North American Air Cargo market.
In 2008, Qantas agreed to pay a fine of 20 million U.S. dollars under a deal reached with the ACCC over the same price-fixing cartel.
