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Qantas welcomes ACCC decision to discontinue action

Sydney, 21 November 2003

Qantas said today it welcomed the resolution of the Federal Court litigation by the ACCC for alleged breaches by Qantas of S46 of the Trade Practices Act. The ACCC will discontinue the action.

The Chief Executive Officer of Qantas, Geoff Dixon, said the action related to Qantas' commercially justified competitive response to Virgin Blue commencing operations on the Brisbane-Adelaide route in early 2001.

The action against Qantas was commenced in May 2002. At all times, Qantas has rejected the ACCC's allegations and has vigorously defended the prosecution. Qantas served its evidence in the last week.

The discontinuance of the litigation confirms Qantas' belief that it would have successfully defended the action. The prosecution has cost Qantas a significant amount of money and has been a major distraction to executive management involved in preparing the defence. Qantas has agreed to bear its own costs to resolve this matter now.

Issued by Qantas Corporate Communication (2997)
Email: qantasmedia@qantas.com.au