SAA and Air Mauritius get go-ahead for their new joint venture

South African Airways (SAA) and Air Mauritius have been granted permission to form a joint venture on the route between Johannesburg and Mauritius route as well as other related routes, the Competition Commission announced on Thursday.

The exemption has primarily been granted because it promotes exports from South Africa, the Commission says.

The two airlines will pool the revenue and costs associated with the provision of commercial passenger and cargo services on the route between Mauritius and Johannesburg and related destinations.

The joint venture will enable the two airlines to access new markets, which may not have been economically feasible in the past. It will also help them to create efficiencies that would not otherwise be possible, according to a statement by the Commission.

"It is expected that the joint venture will equally benefit the South African economy as it will lead to increased foreign currency earnings, improved capacity utilisation and employment, increased passenger numbers, increased cargo capacity and increasing the route network in new markets," states the Commission.

The two airlines can now synchronise passenger and cargo capacity and expand their joint networks.

The exemption, in terms of the Competition Act, allows them to collaborate on the network, scheduling, revenue management and distribution across both carriers. This will enhance their existing bilateral offering.

Carla da Silva, who heads up Air Mauritius Southern Africa and Latin America, recently told Fin24 that she estimates that more than 300 million people will be travelling from, to, and within Africa in the next 20 years.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.64
+0.1%
Rand - Pound
21.20
+0.1%
Rand - Euro
18.93
+0.1%
Rand - Aus dollar
12.22
-0.5%
Rand - Yen
0.13
-0.2%
Platinum
971.46
-0.2%
Palladium
1,596.87
-0.2%
Gold
1,873.54
+0.3%
Silver
22.38
+0.5%
Brent Crude
80.99
+1.3%
Top 40
73,436
-0.1%
All Share
79,516
-0.1%
Resource 10
73,762
-0.4%
Industrial 25
103,227
+0.1%
Financial 15
16,349
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders