SIA Cargo to fight fines
02 / 02 / 2011
IN November 2010 Singapore Airlines (SIA) Cargo agreed to pay a US$48 million fine for its role in a conspiracy to fix prices in the air transportation industry. Now SIA Cargo is appealing against further fines imposed by the European Commission (EC) and the South Korean Fair Trade Commission (SKFTC).
The fine imposed by the EC is €74.8 million ($102 million), while KRW3.1 billion ($2.78 million) is imposed by the SKFTC.
Despite this SIA Cargo operating profit reached $48 million (+18 per cent) in the third quarter of the 2010-11 financial year.
For air cargo, regional differences will continue to be marked in 2011 with strength in Asia Pacific and uncertainties in European markets, the company says. Growth for airfreight is expected to continue for the rest of the financial year, albeit at a slower rate.
On the downside, jet fuel prices are at a year high and look to increase further. The airline’s spending on fuel, its greatest expense, climbed eight per cent to S$1.11 billion ($871 million) in the quarter.