Price fixing cases
In December 2008, Singapore Airlines Cargo was alleged by the Australian Competition & Consumer Commission (ACCC) to be a participant in a price fixing cartel in the air cargo industry. The ACCC accused Singapore Airlines Cargo of fixing the price of a fuel surcharge and a security surcharge that was applied to air cargo to and from Australia. Singapore Airlines Cargo was the third airline to be the targeted for fuel surcharge price fixing.[8]
In May 2010, Singapore Airlines was fined by the Fair Trade Commission of South Korea for conspiring to introduce fuel surcharges for cargoes or continuing to raise them over the past seven years.[9] Singapore Airlines Cargo released a statement saying that it was "very disappointed" and would "study the decision closely with a serious view towards mounting an appeal" once it received the commission's full reasoning.[10]
In November 2010, the European Commission fined Singapore Airlines Cargo 74.8 million euros for its involvement in a global cartel that included ten other carriers. The Commission found that the carriers—including SIA, Japan Airlines, Qantas, Air Canada, Air France-KLM and British Airways—had fixed fuel and security surcharges for more than six years. Singapore Airlines Cargo said it would likely appeal the ruling.[11]
On 30 November 2010, Singapore Airlines Cargo pleaded guilty to a US$48 million fine imposed by the United States Department of Justice for its role in a conspiracy to fix cargo rates since February 2002, until at least 14 February 2006. Singapore Airlines Cargo's price fixing was in violation of the Sherman Act, which carries a maximum fine for corporations of US$100 million.[12][13]
In December 2013, Singapore Airlines Cargo agreed to settle over the issue of price fixing in the United States, without admitting to any wrongdoing or liability. Numerous airlines, including SIA Cargo, saw class actions taken against them in 2006 following investigations by various competition authorities on price fixing in air cargo services in the US. SIA Cargo decided to accept an amicable resolution to settle the class action with the payment of US$62.8 million.[14]
