Singapore Air Cargo fined US$48 million for price fixing

A CRIMINAL fine of US$48 million is likely to be paid by Singapore Air Cargo, a unit of Singapore Airlines, after the company pleaded guilty to fixing prices on air cargo, reported the Wall Street Journal.

The US Justice Department said Singapore Airlines Cargo Pte Ltd engaged in a conspiracy to fix prices, having filed a one-count felony charge in federal court accusing the company of helping to fix prices between 2002 and 2006.

The plea bargain, which requires court approval, is the latest in the department's investigation into the air cargo industry. Thus far, 20 airlines and 17 executives have been charged and more than $1.7 billion in fines have been levied, reported Bloomberg.

Singapore Airlines Cargo said it had cooperated with the investigation. "The company decided to accept the offer after consulting its legal advisers and carefully weighing its options," according to a statement from the airline.

Other carriers fined include Polar Air Cargo, a unit of Atlas Air Worldwide Holdings; Air France-KLM; Cathay Pacific; SAS Cargo and Martinair, a KLM subsidiary.
(Source:www.schednet.com)