The cargo arm of Singapore Airlines (SIA) has agreed to settle over the issue of price fixing in the United States, without admitting to any wrongdoing or liability.
Numerous airlines, including SIA Cargo, saw class actions taken against them in 2006 following investigations by various competition authorities on price fixing in air cargo services in the US.
After consulting its legal advisors and carefully weighing its options, SIA Cargo decided to accept an amicable resolution to settle the class action with the payment of US$62.8 million.
A corresponding financial provision of about S$78.5 million will be made in the financial statements of SIA Cargo for the current financial year.
The settlement will also resolve any liability from the class action for parent SIA.
Separately, SIA has raised its stake in budget carrier Tiger Airways Holdings to 40 per cent from 32.7 per cent.
The Singapore national airline acquired the stake from Temasek Holdings' units Dahlia Investments and Aranda Investments for $49 million or 67.79 cents apiece.
This represents a 20 per cent premium over Tiger Airways' volume weighted average price of 51.24 cents on Dec 19.
Tiger Airways operates from four bases in Singapore, Australia, Indonesia and the Philippines.