SIA

Airlines / SIA: SIA and Cathay Pacific have copped fines of A$23m between them for their part in a global air freight cartel, which included attempts by the Singaporean carrier to fix prices for transporting meat to troops in the Middle East. The attempt to illegally fix those charges in Jan ‘03 followed the US’s decision to deploy about 35k troops to the Middle East, just prior to the invasion of Iraq. At the time, the Australian govt had also decided to send additional military personnel to assist in Iraq. The latest fines take to A$91 m the total amount airlines including Qantas have been penalised in Australia for the illegal activity. The Federal Court in Sydney has ordered SIA and Cathay to pay fines of A$11.75m and A$11.25m respectively. SIA’s fine compares with its FYMar12 net profit at $397m. After Qantas’s fine of A$20m in 2008, the penalties imposed on the two Asian airlines are the second and third highest in Australia for illegally ramping up freight charges in concert with other airlines. Last month Emirates was fined A$10m for fixing fuel prices, a security surcharge and a customs fee on freight carried from Indonesia to Australia and other countries between Oct ‘01 and May ‘06. The competition regulator began legal action against SIA and Cathay Pacific in 2008 and 2009 respectively. SIA stock is -0.1% at $10.75.