SA Airlink’s predatory conduct led to folding of Fly Blue Crane, Competition Commission finds
SA Airlink passengers on the the Johannesburg-Mthatha route overpaid about R100m over five years, an investigation by the Competition Commission has found. The commission said on Wednesday it had referred SA Airlink to the Competition Tribunal for prosecution on charges of excessive and predatory pricing after an investigation. This stems from complaints lodged by businessman Khwezi Tiya‚ Fly Blue Crane and the OR Tambo District Chamber of Business between 2015 and 2017. They alleged that Airlink‚ a privately controlled regional feeder airline‚ had excessive pricing before Fly Blue Crane entered the route. SA Airlink is alleged to have then lowered its prices below its costs — referred to as predatory pricing — when Fly Blue Crane entered the route. Another claim is that SA Airlink went back to its exorbitant prices after Fly Blue Crane exited the route in January 2017. The airline is now non-operational and in business rescue. Fly Blue Crane arrived on the scene charging only R799 ...
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