SAA fined for price fixing

2012-03-27 12:10
SA Airways (SAA) and Singapore Airlines have to pay penalties for fixing flight prices, the Competition Commission said on Monday.

"The settlements are in relation to price fixing conduct in respect of flights between Johannesburg and Hong Kong," the commission said in a statement.

SAA would pay an R18.8 million settlement. Singapore Airlines would pay R25.1 million.

The investigation into price fixing started in January 2008 after Cathay Pacific applied for leniency.

Under the agreement, other cases against SAA were settled.

These related to collusion in international air cargo surcharges and domestic route prices, and pricing strategies for the 2010 Soccer World Cup.

"However, no findings were made against SAA in respect of these two matters," the commission said.

An investigation into cargo fuel surcharges was referred to the Competition Tribunal in July 2010.

"SAA has offered its full co-operation to the commission in its ongoing investigations and prosecution of both matters before the tribunal.

"Similarly, Singapore Airlines undertook to do the same with regards to the Far East matter," the commission said.

SAA said it was happy that it had been possible to conclude a settlement agreement with the commission.

"We are happy that no findings were made against SAA concerning international air cargo surcharges, domestic route prices and pricing strategies during the 2010 Soccer World Cup," said spokeswoman Dileseng Koetle in a statement.

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