Singapore Air Cargo, a unit of Singapore Airlines, is likely to pay a fine of US$48 million after the company pleased guilty to price fixing, according to a Wall Street Journal report carried by the Shipping Gazette.
The US Justice Department said Singapore Airlines Cargo Pte Ltd engaged in a conspiracy to fix prices with a one-count felony charge filed in federal court accusing the company of helping to fix prices between 2002 and 2006.
The plea bargain, which requires court approval, is the latest in the department's investigation into the air cargo industry. Thus far, 20 airlines and 17 executives have been charged and more than $1.7 billion in fines have been levied, according to Bloomberg.
Singapore Airlines Cargo said it had cooperated with the investigation. "The company decided to accept the offer after consulting its legal advisers and carefully weighing its options," according to a statement from the airline.
Other carriers fined include Polar Air Cargo, a unit of Atlas Air Worldwide Holdings; Air France-KLM; Cathay Pacific; SAS Cargo and Martinair, a KLM subsidiary. – Source Shipping Gazette