Singapore Airlines Cargo disappointed by EC decision
10-Nov-2010 Singapore Airlines Cargo is disappointed by the European Commission’s decision in the EU air cargo competition law case.
Singapore Airlines Cargo will study the grounds of the decision carefully when details become available in full. Singapore Airlines Cargo strongly contests, however, any suggestion that it has been involved in a global conspiracy to fix surcharges or rates. Singapore Airlines Cargo also contests any suggestion that conduct in the context of the pro-competitive WOW global air cargo alliance can form part of such an alleged conspiracy.
Singapore Airlines Cargo further contests any suggestion that the European Commission can apply EU law to conduct in markets outside the EU that was lawful in those countries and did not have direct or substantial effects in the EU.
As a result, Singapore Airlines Cargo is likely to appeal to the European Courts in Luxembourg.
Arising from the €74.8 million administrative fine imposed by the European Commission, a financial provision of approximately SGD 134 million (based on an exchange rate of €1 to SGD 1.79) will be made in the financial statements of Singapore Airlines Cargo for the current financial year.
Singapore Airlines is an addressee of the decision solely in its role as the parent company of Singapore Airlines Cargo.
Neither Singapore Airlines nor Singapore Airlines Cargo will have any further comment at this time as these matters are part of an ongoing legal process.