Friday, July 15, 2011

MAS to pay US$3.35m to US freight forwarders

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) is paying US$3.35 million to some freight forwarders in the US to settle the air cargo litigation.

MAS said on Friday, July 15 that it had on July 11 entered into a settlement agreement with the freight forwarders in the US.

The national carrier said the settlement, which remains subject to court approval, was to resolve claims against MAS in the US concerning alleged price fixing on airfreight shipping services and related surcharges.

To recap, MAS was served with the plaintiffs' class action complaint on Feb 16, 2010.

In the latest development, MAS would pay US$3.35 million to the plaintiffs, which was the lowest settlement amount paid by any airline to date.

'Under the settlement agreement, MAS does not admit to any wrongdoing and continues to deny any involvement in price fixing activities. The settlement permits MAS to expeditiously resolve the plaintiffs' claims, which will keep its legal costs to a minimum and allow MAS to focus its full attention on further strengthening its business.

'It would also relieve MAS of the possibility of treble damages allowed under the US antitrust laws if the court rules against MAS,' it said.

MAS said the group advocated for and were committed to complying with all applicable laws, including competition laws, in their countries of operation.

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