SAA accused of uncompetitive practice: Report

By Drum Digital
20 September 2013

Imperial Logistics wrote to the Competition Commission to request a market inquiry.

Imperial Logistics have accused SA Airways (SAA) of uncompetitive practice in the domestic overnight freight market, The Times reported on Friday.

Chief integration officer of Imperial Logistics Cobus Rossouw said that the two companies could not compete if SAA Cargo was not regulated by the same market pressures.

"It is a small market that is highly price-sensitive, and if you've only got two players, it doesn't work if one player is not commercially sensitive [to market pressures]," Rossouw was quoted as saying.

SAA spokesman Tlali Tlali said the airline had not yet received notification from the commission.

Rossouw said Imperial Logistics had to survive on tight profit margins to remain sustainable, in contrast to SAA Cargo, which was cross-subsidised either by the SAA passenger service or government bailouts.

-by Sapa

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