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FINANCIAL NEWS
Saudi national airlines fined USD14m
20 Aug 2011
(MENAFN) Saudi Arabian Airlines’ vice president for public relations, Abdullah Al-Ajhar, said that the US District Court for the Eastern District of New York fined the national carrier USD14 million for allegedly plotting with other airlines to inflate air cargo prices, reported Arabian Business.
The vice president also said that Saudia Airlines agreed to pay about USD14 million on to settle the case, adding that more than twenty-four airlines around the world were involved in the price-fixing issue.
Attorneys for the plaintiffs said that if US District Judge John Gleeson in Brooklyn federal court approves the proposed settlement, it would mean that 14 airline groups named in the class-action price fixing litigation have settled or agreed to settle, bringing the total amount of proposed settlements to USD454.4 million.
It is worth mentioning that Saudi Arabian Airlines sold 30 percent of its cargo division to a specialized company in 2008 as part of its privatization program.
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