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Notes to the Financial Statements
31 March 2015
36 Contingent Liabilities (in $ million) (continued)
(b) Passengers: Civil Class Actions
The Company and several other airlines have been named in a civil class action lawsuit in Canada alleging an unlawful
agreement to fix surcharges and fares on transpacific flights. The case is currently in the procedural stage and has not
been tried thus far on its substantive legal merits. As the lawsuit has neither been tried nor alleged damages quantified,
it is premature to make a provision in the financial statements.
On 1 September 2011, legal proceedings were filed by the IATA Agents Association of India (“IATA Agents”) and Osaka Air
Travels Ltd. (collectively, “Petitioners”) before the High Court of Kerala, India, principally against the Ministry of Civil Aviation
and the Directorate General of Civil Aviation (“DGCA”), the Company, SilkAir and other airlines. The proceedings sought
to quash a DGCA order dated 28 July 2011 which stated that the payment of commission to designated agents by airlines
is entirely a commercial arrangement between the two, and does not require interference by the DGCA. On 27 November
2012, the High Court dismissed the suit against the airline defendants. An appeal challenging the order of dismissal was
filed by the Petitioners on 14 January 2013. As there were several procedural defects made by the Petitioners, this matter
has not been taken up by Court to date. Once the defects are corrected by the Petitioners, the matter will be listed for
hearing. To date, the Petitioners have not cured the defects and the matter has, therefore, not come up for hearing.
With regard to anti-trust litigation in the United States, SIA entered into a settlement agreement (with no admission of
liability) with the plaintis in August 2014 which is subject to Court approval. In accordance with the agreement, SIA has
made payment of USD9.2 million ($11.4 million) into an escrow account pending court approval.
186 FINANCIAL