Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Singapore Airlines cops $4.1M fine in cartel case

Singapore Airlines cops $4.1M fine in latest air cargo cartel settlement

By Paul McBeth

Dec. 21 (BusinessDesk) - Singapore Airlines Cargo has been fined $4.1 million for its role in colluding to fix prices for air cargo in the latest settlement with the Commerce Commission.

In the High Court in Auckland, Justice Chris Allan today ordered the airline to pay the third-biggest fine out the seven settlements to date, taking the running tally to $24.48 million. SIA Cargo, a subsidiary of Singapore Airlines, admitted liability for agreeing to fuel and security surcharges in Indonesia and Malaysia for cargo flown to New Zealand over a four-year period. The judge also awarded $260,000 in costs to the antitrust regulator.

"It is common ground that the defendant’s conduct was at the serious end of the spectrum," the judgment said. "The surcharges comprised only part of the total charges to customers for air cargo services, but the agreements must inevitably have affected price competition and so impacted upon competitive dynamics in the relevant markets."

Justice Allan gave a 20 percent discount to the final penalty to recognise the admissions, and likened SIA Cargo's role in the cartel to that of Japan Airlines and Korean Air, which were fined $2.28 million and $3.5 million respectively.

"Importantly, SIA Cargo implemented a global competition law compliance programme in 2005," the judge said. "Since then it has continued to update its policy, as well as undertaking additional in person training and instituting web based training."

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

The alleged price-fixing has been the subject of antitrust process worldwide, with big settlements from multi-national airlines in Europe and the U.S. Some of the alleged agreements appear to have been in place since 2001.

In 2006, air freight forwarding services in and out of New Zealand generated $450 million in revenue.

The commission's case is scheduled to continue in the High Court, with Air New Zealand, Cathay Pacific Airways, Malaysian Airlines, and Thai Airways International defending the charges.

The regulator dropped proceedings against Garuda Indonesia, United Airlines and six Air New Zealand executives last year, and discontinued against two Qantas executives in February this year.

Last month, Cargolux lost a bid to throw out a compensation claim by a local flower exporter over the price-fixing cartel.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news