Singapore Airlines 2009 Annual Report Download - page 184

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35 Contingent Liabilities (in $ million) (continued)
(b) Cargo: Investigations by competition authorities (continued)
In addition to the aforesaid notices, SIA Cargo is amongst numerous airlines to have received a Statement
of Objections (“SO”) from the European Commission (“EC”). The SO sets out the EC’s preliminary view
of its case against the airlines with respect to alleged competition law infringements but does not
prejudge the outcome. No fi ne amount is mentioned in the SO. SIA Cargo and the Company provided
their written response to the SO on 21 April 2008 and its related oral submissions during the EC Oral
Hearing held from 30 June 2008 to 4 July 2008. The timing of any decision by the EC in this case is
uncertain, but deliberations are expected to take several months.
In December 2008, the competition authorities in New Zealand and Australia initiated civil penalty
proceedings concerning the air cargo issues. In New Zealand, a statement of claim was issued against
fourteen airlines including both SIA Cargo and the Company. In Australia, a statement of claim was
issued against only SIA Cargo, but the competition authority has indicated that proceedings will be
brought against other carriers. These proceedings are at a preliminary stage focused on procedural
issues and preliminary objections to the statements of claim.
After the investigations commenced, civil class-action suits were fi led in the US, Canada and Australia by
external parties against several airlines, including SIA Cargo. These cases still remain in their respective
procedural stages and none have been tried thus far on their respective substantive legal merits.
As the EC is still analysing the case, the civil penalty proceedings in Australia and New Zealand are
at a preliminary stage, the investigations by the competition authorities in other jurisdictions are still
ongoing and the civil class-action suits have neither been tried on their respective substantive legal
merits nor have damages been quantifi ed, it is premature to make a determination regarding whether
the investigations, proceedings or civil suits can be regarded as contingent liabilities and, therefore, no
provision has been made in the fi nancial statements.
(c) Passengers: Civil actions in the US
The Company and several airlines have been named in civil anti-trust class-action law suits in the US
alleging an unlawful agreement to fi x surcharges on transpacifi c fl ights to and from the US. These cases
are currently in procedural stages and none have been tried so far.
The investigations by the competition authorities in other jurisdictions are ongoing and the civil class-
action suits have neither been tried on their respective substantive legal merits nor have damages been
quantifi ed. It is therefore premature to make a determination regarding whether the investigations or
civil suits can be regarded as contingent liabilities and, therefore no provision has been made in the
fi nancial statements.
NOTES TO THE FINANCIAL STATEMENTS
31 March 2009