SINGAPORE: SIA Cargo to pay US$48 million fine

Singapore Airlines Cargo on has pleaded guilty and agreed to pay a US$48 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry, the US Justice Department said recently.


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Singapore Airlines Cargo on has pleaded guilty and agreed to pay a US$48 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry, the US Justice Department said recently.

According to court documents, SIA Cargo engaged in a conspiracy to fix the cargo rates charged to certain customers in the US and elsewhere for international air shipments from as early as February 2002, until at least February 14, 2006.

The documents say the airline company and co-conspirators agreed during meetings, conversations, and other communications on one or more components of the cargo rates to be charged for shipments on certain routes to and from the US. As part of the conspiracy, the involved parties levied cargo rates in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates.

In addition to the $48 million criminal fine, which is subject to court approval, Singapore Airlines Cargo also agreed to cooperate with the department’s ongoing antitrust investigation in which a total of 20 airlines and 17 executives have been charged for price fixing in the air transportation industry. To date in the US, more than $1.7 billion in criminal fines have been levied and four executives have been sentenced to serve prison time. Charges are pending against the remaining 13 executives.