South Africa: Airlines probed over World Cup fares
source: IOL
January 28 2010 at 11:17PM
The Competition Commission is investigating collusion among local airlines, it said on Thursday.
“The Competition Commission has initiated an investigation against major airlines BA/Comair, South African Airways, 1Time, SA Airlink, Mango and SA Express for allegedly colluding on prices and pricing strategies to be adopted during the Fifa 2010 World Cup tournament,” it said in a statement.
The commission said the investigation followed a leniency application by South Africa Airways (SAA) in December in which it undertook to fully co-operate with the commission, in exchange for leniency from prosecution under the Competition Act.
“In November 2009, the Office of the President also requested the commission to look into concerns that airlines planned to escalate their airfares during the [continue reading]
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1 February, 2010 at 1:46 am
South African Airways is being very clever playing a Richard Branson.Remember Virgin Atlantic Vs Ba in ’07?I think staff member savvy with this anti competition laws knew SAA would be in deep trouble and quickly alerted the authorities betraying its erstwhile partners in crime.
While hiking prices is not illegal due to the expected rise in demand,forming cartels to cooperate in pricing strategies is anti competitive and illegal and SAA should face the law;they could get a lenient sentence for blowing up the whistle but there should be no immunity from prosecution.