SIA Cargo “disappointed” in massive fine

SINGAPORE Airlines (SIA) Cargo is “very disappointed” by the news that the South Korean Fair Trade Commission (KFTC) has fined it and 18 other major airlines for fixing air cargo rates over the last seven years.

Unsurprisingly, the carrier said that, once it receives the commission’s full report, the airline will study it closely “with a serious view towards mounting an appeal”.

Similarly, Cathay Pacific, also one of the carriers implicated, said: “[We] will review the KFTC’s decision in detail with its legal counsel and explore the options available.”

The airlines were fined a total of 120 billion won (US$98 million), while two others were cautioned. The KFTC claims the cartel resulted in the loss of $5 billion worth of sales in the South Korean market.

Korean Air Lines took the brunt of the fine – $39 million – with Asiana Airlines next heavily fined with $16 million. However, Korean Air will actually only pay $18 million because it voluntarily admitted its wrong doing to the KFTC.

Other major airlines fined include Air France, Japan Airlines International and Lufthansa, while the two companies warned were Air India and Scandinavian Airlines System.