On 28 October 2008 the Australian Competition and Consumer Commission (ACCC) instituted separate proceedings in the Federal Court, Sydney, against Qantas Airways Limited and British Airways PLC seeking penalties for alleged price fixing between 2002 and early 2006. 

The alleged contraventions relate to fuel surcharges applied to international carriage of air cargo during that period.

In both cases the parties have reached agreement with the ACCC as to the penalty they will recommend is appropriate for the court to impose. 

The Qantas action has been set down for hearing on 4 November 2008 in the Federal Court, Sydney. The British Airways action has been set down for hearing on 5 November.

ABC News reports that Qantas has agreed to a recommended penalty of $20 million.

UPDATE 14 December:

The Federal Court in Sydney has ordered Qantas Airways Limited to pay $20 million in pecuniary penalties for breaching the price fixing provisions of the Trade Practices Act 1974.

Justice Lindgren also made orders restraining Qantas from engaging in similar conduct for a period of three years and to pay $200,000 contribution towards the ACCC's costs.

Justice Lindgren indicated he would publish his reasons in January 2009.