Saudia Cargo price fixing settlement improves prospects for IPO plans to go ahead

Some 14 airlines have now agreed to settle with Malaysian and South African leading the way. Now Saudia has agreed to pay $14million in damages to meet claims by a class action from freight service purchasers.

According to Reuters some $454 million has already been agreed.

Unlike many of the other airlines, Reuters reported, Saudia has not pleased guilty to US antitrust violations. The newsagency quoted Michael Hausfeld, one of several attorneys representing the plaintiffs, who called the Saudia settlement "a further step toward total global resolution of one of the largest cartels ever uncovered”

In Jeddah Shams Arabic daily quoted Abdullah Al-Ajhar, vice president for public relations, saying the airline  would inform the media details of the case shortly.

“The New York court has actually issued its verdict against Saudi Arabian Airlines and the airline’s legal agencies in the US are following up the case,” Al-Ajhar told the newspaper.

The case has been working its way through the American legal system for more than five years. In 2007 Saudia sought exemption from the US case as the airline was a foreign national entity.

The settlement also clears the way for the proposed privatisation of the cargo carrier as part of the whole privatisation  of the national aviation entty of the Saudi Arabian government. Earlier this year the airline had set a target of 2013 for completion of the IPO.

With a network of more than 225 domestic and international stations and sub-stations, Saudi Airlines Cargo now has a strong presence in most world markets with improved airfreight services being rendered with its fleet of 12 cargo aircraft fleet and cargo space available on board 125 passenger aircraft of Saudi Arabian Airlines.