The Competition Tribunal on Monday confirmed a consent order that imposed a R15-million fine on South African Airways (SAA) for anti-competitive practices, the tribunal said in a statement.
The tribunal came to the decision after allegations made by Comair against SAA were investigated by the Competition Commission.
Comair has alleged that SAA was compensating travel agents for their services.
”Comair alleged that SAA was dominant in the market for domestic airline travel and that it used this dominance to engage in exclusionary practices in contravention of the Competition Act.”
The consent agreement states that SAA would no longer include incentive payments in its agreements with travel agents.
”SAA also undertakes to implement a compliance programme [and] … agreed to pay an administrative penalty of R15-million,” it said.
Nationwide and Comair have challenged the validity of the consent order arguing that it did not contain an admission of liability.
The airlines have also argued that the fine was too low.
According to the statement, Comair and Nationwide could lodge a civil claim through the tribunal.
SAA’s total liability amounts to R100-million, including the R45-million from the Nationwide case, R15-million in respect of this consent order and an additional R40-million for two other consent orders confirmed by the tribunal previously, the statement read.
Comair was not immediately available for comment. — Sapa