South Africa probes World Cup fare collusion
CAPE TOWN – The Competition Commission of South Africa is reported to have launched an investigation into collusion on fares and pricing strategies for flights during this summer’s World Cup.
It named British Airways and its Comair subsidiary, South African Airways, Airlink, SA Express, 1Time and Mango as subjects of the inquiry.
The Commission said the office of President Jacob Zuma issued a November request asking it to look into World Cup airfares.
Last month, SAA applied for leniency from prosecution in exchange for full cooperation and provided the Commission with “e-mail correspondence between the airlines in which there are indications that the airlines might adjust airfares ahead of the World Cupâ€.
The Commission said, “In particular, the e-mail suggests that since there is no indication as to which flights will represent peak demand flights, airlines have the option to either not provide any inventory for sale until such time, or price all inventory at peak time rates until such time as they have greater certainty.”
It added that the e-mail “suggests that airfares will have to be raised in order to cover various anticipated additional costsâ€.
Commissioner Shan Ramburuth said the body “is obliged to investigate all legitimate complaints” concerning anticompetitive conduct and that if it identifies wrongdoing it will refer to the case to the Competition Tribunal for a hearing.
The World Cup tournament runs June 11-July 11 in nine South African cities.
Source: ATW Online.
Ian Jarrett
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