German airliner Lufthansa is to pay an R8,5-million administrative penalty for colluding with South African Airways on price-fixing.
The Competition Commission disclosed on Wednesday that the German airline had signed a consent agreement with the competition authority on substantially similar terms to the consent agreement reached with South African Airways (SAA) last week, relating to the collusion between the two airlines.
The agreement has also been referred to the Competition Tribunal for confirmation.
A probe carried out by the commission found that from 1999 until the commission commenced its investigation during 2002, the airlines had fixed the selling price of air tickets on their flights between Cape Town/Johannesburg and Frankfurt through meetings and communications where price changes and the harmonisation of fares were discussed.
“In terms of the agreement, Lufthansa has agreed to pay an administrative penalty of R8,5-million and to ensure that its business complies with the Competition Act,” the commission said.
SAA has agreed to pay a R55-million administrative penalty for fixing ticket prices and fuel-levy charges and for abusing its dominant position in the domestic market by encouraging travel agents to increase their sales of SAA tickets at the expense of other airlines. — I-Net Bridge