South Africa: National carrier hit with record fine

Cape Town, South Africa (PANA) – The High Court in Johannesburg on Wednesday ordered the South African Airways (SAA) to pay rival airline, Comair, US$ 75 million for anti-competitive behaviour.

This follows a drawn-out 14-year legal battle over travel agent incentive schemes which Comair claimed were in favour of SAA.

The national carrier was convicted of implementing an incentive scheme for travel agents, which kept the agents loyal to the state-owned airline to the exclusion of its competitors and in violation of South Africa’s Competition Act.

Comair has warned shareholders that SAA is likely to appeal the judgment. "As this has been a long and complex matter, the company will need time to study the judgment," Comair said in a statement.

In 2007, SAA paid US$ 5 million to the Competition Commission of South Africa because of anti-competitive behaviour such as price fixing.
-0- PANA CU/VAO 15Feb2017

15 february 2017 15:57:03




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