SIA Cargo fined NZ$4.1m for price-fixing

Singapore Airlines' (SIA) cargo unit has been fined NZ$4.1 million (S$4.2 million) by a New Zealand court for its part in a price-fixing cartel.

SIA said in a statement the Auckland High Court had approved the agreed penalty, bringing an end to proceedings brought by the New Zealand Commerce Commission.

Costs were fixed at NZ$259,079.

SIA Cargo had admitted liability for agreeing fuel and security surcharges in Indonesia and Malaysia for cargo flown to New Zealand over a four-year period.

SIA said it would make a provision of approximately S$4.41 million in its accounts for the current financial year.

New Zealand Commerce Commission chairman Mark Berry said in a statement: "Price fixing is unlawful and the fines imposed in the air cargo case should be a deterrent to others who might breach the Commerce Act."

SIA is the seventh international airline in the long-running case to settle with authorities, bringing total penalties ordered to S$25.8 million (NZ$25.5 million).

Other airlines to have settled include British Airways, Cargolux Airlines, Emirates, and Qantas.

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It doesn't matter who you are, as long as the you breach anything, you will have to face the music.