SAA fine confirmed rivals claim its a let-off
Publish date: 05 December 2006
Issue Number: 1721
Diary: Legalbrief Today
Category: Competition
In what is seen by rivals as a let-off for SAA, the airline must pay a R15m fine after the Competition Tribunal yesterday confirmed a consent order between the Competition Commission and the airline, which agreed to pay the penalty.
The fine, says an I-Net Bridge report, stems from a complaint lodged by Comair, which complained about the manner in which SAA was compensating travel agents for their services. The consent agreement contained undertakings from SAA that its future agreements with travel agents will not contain certain features in respect of incentive payments.
Full I-Net Bridge report
SAAs rivals, though, are unimpressed. Comair spokesperson Stuart Cochrane said the penalty imposed on SAA was too low. The companys lawyers were studying the report and would decide Comairs next step. According to a Business Day report, Cochrane said Comair, which operates British Airways and kulula.com, was likely to pursue a civil claims lawsuit of R500m against SAA. Nationwide has already served SAA with summonses demanding that SAA pay R269.5m in damages.
Full Business Day report
