EU slaps SIA, 10 other airlines with $1.2b fine

Singapore Airlines was fined €74.8 million (S$112.8 million) by European Union antitrust regulators for its participation in what was said to be an air cargo cartel.
Singapore Airlines was fined €74.8 million (S$112.8 million) by European Union antitrust regulators for its participation in what was said to be an air cargo cartel.PHOTO: BLOOMBERG

BRUSSELS • Singapore Airlines and 10 other airlines have been hit with a €776 million (S$1.2 billion) fine by European Union antitrust regulators for their participation in what was said to be an air cargo cartel.

The European Commission reimposed the penalties after an earlier decision was annulled due to a procedural error.

The airlines were accused of fixing fuel and security surcharges between December 1999 and February 2006. These charges are usually payable by freight forwarders who book cargo space on aircraft and companies that transport goods.

Air France was fined €182.9 million, the highest, followed by KLM at €127.1 million, British Airways at €104.4 million, Cargolux at €79.9 million and Singapore Airlines at €74.8 million.

Other carriers penalised were Air Canada, Cathay Pacific Airways, Japan Airlines, LAN Chile and SAS.

Lufthansa, along with subsidiary Swiss International Airlines, escaped a fine as it alerted the EU authority about the cartel.

REUTERS

A version of this article appeared in the print edition of The Straits Times on March 18, 2017, with the headline 'EU slaps SIA, 10 other airlines with $1.2b fine'. Print Edition | Subscribe