Qantas exec to face jail time for role in "Cargo Cartel"

This is collusion with a capital C. Former Qantas Airlines VP of Freight for the Americas, Barry McCaffrey, could be the first person jailed for his involvement in a price-fixing conspiracy according to Aviation Week. The US Justice Department has already laid out some pretty hefty fines for British Airways, Japan Airlines, and Korean Air for their involvement in the conspiracy. McCaffrey is trying to reach a plea deal with the DOJ now that will include admission of his role and outing of other co-conspirators who met over a period of 7 years to set prices on freight going to and from the U.S.

The crime carries a maximum $1 million fine and up to 10 years in prison, but McCaffrey will likely not see that extent with any kind of deal with the DOJ. Qantas has already paid their share for participating in the "Cargo Cartel" with a $61 million fine. The investigation has been ongoing since 2006 when German carrier Lufthansa reached a deal with EU and DOJ prosecutors for immunity in return for snitchen on other airlines in the cartel. If you've ever seen a mob movie, I don't have to tell you what would happen to them next.

The DOJ hasn't commented on any other indictments yet, although it appears other airline executives could also see jail time for their involvement. A spokesperson for the DOJ did say "The department remains dedicated to aggressively pursuing those who conspire to cheat American businesses and consumers with price-fixing schemes".

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