Tuesday, March 27, 2012

SIA agrees to pay S$4.1m penalty for price fixing

SINGAPORE : Singapore Airlines (SIA) said it agreed to pay an administrative penalty of S$4.1 million (25 million South African Rand) as part of the settlement for a price-fixing complaint against the airline by the South African Competition Commission.

SIA and several other airlines were alleged to have infringed the South African Competition Act.

The SIA settlement is "in relation to price-fixing conduct in respect of flights between Johannesburg and Hong Kong," according to a news release by the South Africa Competition Commission.

"This investigation was initiated on 16 January 2008 following Cathay Pacific's application for leniency," the statement said.

In its statement, SIA said it cooperated with the Competition Commission throughout the investigation.

"Singapore Airlines decided to negotiate a settlement after consulting its legal advisors and carefully weighing its options," the airline said.

"Once the settlement agreement is confirmed by the South African Competition Tribunal, this will bring the Competition Commission's investigation to a close for Singapore Airlines."

SIA said the penalty will appear as a provision its financial statements for the current year.

Separately, an SIA Airbus A380 flight to Frankfurt has been forced to return to Singapore due to an engine problem.

SIA said Singapore Airlines flight SQ26 from Singapore to Frankfurt was 2 hours 55 minutes into the flight when the crew reported a problem with one of the aircraft's four engines.

"The crew reported an engine surge in the Number 3 engine and the engine was shut down," according a statement. SIA said the aircraft is capable of flying safely on three engines and that "at no time was the safety of our customers and crew compromised".

An SIA spokesman said the company was looking into the incident and the engine "will undergo thorough inspections in consultation with Rolls-Royce."

The spokesperson said that "a surge is typically a disruption of airflow which affects the normal operation of the engine".

The flight departed Singapore at 12.05am on Tuesday and landed back at 6.40am without incident.

The flight had 430 passengers on board. SIA said an aircraft change was carried out and the flight departed again for Frankfurt at around 11am.

- CNA/ms

View the original article here

Source From Channel News Asia

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