Cash-strapped South African Airways (SAA) was hit with a R1.16bn fine, adding to its struggle to remain a going concern. On Wednesday, the High Court in Johannesburg ruled that SAA must pay Comair R554m, plus years of interest, for engaging in anticompetitive behaviour between 1999 and 2005. While Comair warned its shareholders SAA may appeal the judgment, the civil claims once again raised fears yet another bailout would be required to keep SAA solvent. SAA said it was studying the judgment, but noted this was a "legacy issue" under different management and the airline had put in place new business rules. SAA was given a list of stringent conditions attached to a further R4.7bn guarantee it received in September last year, when its board agreed to proceed with a process to stabilise operations and finances, including possible rationalisation of three state-owned airlines. In August, Nationwide Airlines – which went into liquidation in 2008 – won its claim for R325m. SAA said on Wed...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.