Source: David Gray/Reuters
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Intelligence report claims Australia’s largest airline, Qantas (QAN), has been infiltrated by hundreds of organised criminals
  • Code-named ‘Project Brunello’, the inquiry found up to 150 Qantas staff were linked in some way to criminality
  • One of the most concerning “trusted insiders” at Qantas is a Comanchero bikie gang affiliate thought to be working in a mid-level management position at Sydney airport
  • Qantas says it has written to four key agencies and is seeking additional information regarding the report
  • Federal Labor is now calling for an urgent review of security measures at Australia’s airports
  • Shares in Qantas are down 1.03 per cent to $4.82 as of 11:29 am AEST

Qantas (QAN) has started the week in damage control after an intelligence report claimed Australia’s largest airline has been infiltrated by hundreds of organised criminals.

Code-named ‘Project Brunello’, the inquiry by the Australian Criminal Intelligence Commission found a significant number of Qantas staff — up to 150 — were linked in some way to criminality and described the revelations as “serious” and representing “a very high threat to the Australian border.”

Unable to speak publicly due to confidentiality requirements, official sources who were briefed on the report told 60 Minutes, The Age and The Sydney Morning Herald that one of the most concerning “trusted insiders” at Qantas is a Comanchero bikie gang affiliate connected to international drug cartel boss Hakan Ayik.

The person is thought to be working in a mid-level management position at Sydney airport and has had a hand in recruiting criminals to the airline to facilitate the importation of narcotics.

Other staffers identified include a Hells Angels-linked figure in the Northern Territory working as a Qantas contractor. Previously gathered intelligence suggests he had infiltrated Defence Department flights that were subcontracted to Qantas.

A freight contractor working for Qantas in Perth was also found by Project Brunello to have been repeatedly “using his trusted insider status” to make large drug deliveries.

Notably, the investigation found that former Qantas baggage handler turned wealthy Sydney racing identity Damion Flower — who pleaded guilty in May to importing $68.5 million worth of cocaine — had actually imported around $1 billion of the drug through Qantas and another corrupt baggage handler, who has since been jailed.

Project Brunello identified five Qantas staffers with links to alleged “national security” concerns, like Islamic extremism, and another seven connected to child exploitation, who may be part of a small network of sex offenders at Brisbane international airport.

Qantas’ departments deemed to be at the highest risk are its air freight division and ground crew and baggage handling divisions.

Nearly 60 Qantas staff were linked to “serious drug offences” or “organised crime groups,” while 23 have “used employment in the aviation environment to facilitate various criminal activities.”

The findings are based on a deep dive by the Australian Criminal Intelligence Commission, which looked into years-worth of intelligence records and Qantas’ employee and contractor history.

It comes on top of additional revelations by the head of the commission, Michael Phelan, who said Australia’s most wanted crime bosses have established a cartel earning an estimated $1.5 billion a year by smuggling drugs across the nation’s borders.

Nine men — mostly drawn from Australian bikie gangs and middle-eastern crime syndicates — make up what has been named the ‘Aussie Cartel’, which boasts key Comanchero-linked members that have connections to some of those suspected “trusted insiders” identified by Project Brunello.

Early on Monday, Qantas said it was seeking further details regarding the report and called the claims “disturbing.”

“To be clear, none of Australia’s law enforcement agencies have told us of the existence of a report that suggests there are potentially 150 Qantas employees who have connections to organised crime,” said the airline’s security chief Luke Bramah.

“Nor have they raised concerns with us about our vetting or background checking processes.”

Mr Bramah also noted that Qantas is the only commercial airliner that holds a Trusted Trader accreditation with the Australian Border Force, meaning every employee connected to international air freight must pass a fit and proper test.

“We’ve not been advised by Border Force of any of our employees failing this test,” he said.

Late on Sunday, calls were made for an urgent review of security measures at Australia’s airports.

“The untold story of COVID-19 is that organised crime syndicates have not only adapted but thrived in the COVID-era, all while the Morrison Government has been asleep at the wheel on airport security,” said Labor senator Kristina Keneally in a tweet.

Qantas said it has worked with law enforcement agencies on multiple occasions over the last decade and added that it “will actively support their investigation and take appropriate action”.

Shares in Qantas are down 1.03 per cent to $4.82 as of 11:29 am AEST.

QAN by the numbers
More From The Market Online
The Market Online Video

Market Close: ASX glass gets a top up as BHP stars on the bourse

The ASX200 closed up just under half a per cent as Materials led the rally more…
The Market Online Video

Market Update: Unemployment on an even keel as ASX gains marginal ground

Australia's unemployment has edged up to 3.8%, according to ABS data, marking a 0.1% increase with…
The Market Online Video

Market Close: Energy and health sapped as ASX slips down by a sliver

The ASX200 slipped into the red - but only by 0.09 of a per cent at close…
The Market Online Video

Market Update: Brighter ASX surfaces with a smile

The ASX200 is up around a quarter of a per cent – beating futures predictions by about half a per cent.