SIA's cargo arm ready to make S$111.8m financial provision

In case the airline does not appeal the European Commission’s fine.

Singapore Airlines (SIA) on Monday announced that its cargo arm may make a financial provision of S$111.8m for FY17 as a result of a EUR74.8m (S$113m) fine imposed by the European Commission (EC), according to OCBC.

After having this 2010 decision voided by Europe's second highest court in 2015 due to a procedural error, the EC last Friday re-imposed a total of EUR776m (S$1.2b) penalties on SIA and 10 other airlines for an air cargo cartel that happened more than 10 years ago, noted OCBC.

Here’s more from OCBC:

In its 2010 finding, the EC said the cartel fixed air freight services, fuel and security surcharges between December 1999 and February 2006.

SIA said it will study the grounds of the decision, after which it will consider an appropriate course of action, which in our view may possibly include an appeal against the fine, and will be what one of the airlines, SAS, will be doing against this new decision.