Ex-Qantas executive takes plea deal in price-fixing scheme
The former highest-ranking U.S. executive for Australia's largest air carrier, Qantas Airways Ltd., has agreed to a plea deal with U.S. federal prosecutors related to conspiracy charges stemming from an air cargo price-fixing scheme.
Under terms of the plea deal announced last week, Bruce McCaffrey, former vice president of Qantas' U.S. freight operations, agreed to cooperate with an ongoing U.S. Justice Department investigation into airline industry price-fixing. McCaffrey, who faced a possible 10 years in prison and $1 million in fines, will serve eight months in prison and pay a $20,000 fine under the plea agreement.
'The air transportation of products for both businesses and consumers is a critical piece of the global economy,' said Thomas Barnett, assistant U.S. attorney general for antitrust, adding that McCaffrey's plea demonstrated the Justice Department's determination in holding both individuals and corporations 'responsible for engaging in criminal conduct.'
Qantas, with headquarters just outside Sydney, agreed in November 2007 to pay a $61 million fine to settle charges of conspiracy in the price-fixing scheme. The Justice Department claimed Qantas pocketed more than $600 million by manipulating air cargo rates. The carrier's settlement with the Justice Department granted it immunity after the firm agreed to cooperate with the investigation. The immunity deal did not extend to certain executives of Qantas, including McCaffrey. However, because price-fixing is not illegal in Australia and extradition to the U.S. is deemed unlikely, the Australia-based executives are not expected to face U.S. prosecution.
Ex-Qantas executive takes plea deal in price-fixing scheme
