Jail Time For Mr. Qantas Cargo

     Air cargo executives that have done business with Qantas might want to think about the deal and check their notes as U.S. Department of Justice said Thursday that Bruce McCaffrey, the long time serving former vice president of freight for the Americas of Qantas Airways Ltd., has pleaded guilty to price fixing and will serve eight months in jail and pay a USD$20,000 criminal fine.
     But for McCaffrey it could have been worse.
     Reportedly he is cooperating which means naming names.
     Charges filed in U.S. District Court in the District of Columbia by DOJ state that Mr. McCaffrey and co-conspirators conspired to fix rates on air cargo shipments to the U.S. and international customers from January 2000 to February 2006.
     US DOJ said Mr. McCaffrey is the first individual to be charged out of five recent cases from the widely publicized ongoing investigations of the air cargo industry.
     Quiet-spoken Bruce operated as top executive at Qantas Cargo USA from a base in Valley Stream, New York near JFK before moving to LAX about a decade ago.
     Always out of the spotlight, McCaffrey suffered a debilitating illness while in Los Angeles that left him partially disabled.
     Still he continued his career at Qantas.
     That he was able to come back and continue to work despite horrible physical impairment speaks of the strength and determination of the man. We can only wonder what kind of downward pressure was applied to this fragile man who at this point should have been in the twilight of his career but now faces yet another enormous challenge and ultimate disgrace at the hands of USA law enforcement.
     As uncertainty grows as to where all this cloak and dagger stuff from the US DOJ in partnership with similar authorities in EEU will lead, at this week’s CNS meetings in Palm Beach Florida there were no reports of law enforcement intrusion at the three-day industry event.
     Despite reported record attendance at CNS Palm Beach, Air Cargo News Flying Typers was told that some international executives passed on the gathering after being harassed by summons-bearing marshals at the 2007 confab that was held a year ago in Rancho Bernardo, California.
     Virgin Atlantic and Lufthansa reportedly are cooperating with the ongoing U.S. investigation. Virgin Atlantic reportedly gave up British Airways in 2006 telling British authorities about BA illegal price-fixing. 
     Last year British Airways and Korean Air Lines pleaded guilty and fined USD$300 million criminal fines for their involvement in price-fixing conspiracies.
     Qantas, pleaded guilty in January and was sentenced to pay a USD$61 million criminal fine for engaging in a conspiracy to fix rates to customers in the United States and elsewhere for international air shipments.
     Last month, Japan Airlines agreed to plead guilty and was told to pay a USD$110 million criminal fine for its role in a conspiracy to fix rates.   
Geoffrey

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