Competition Commission red lights Airlink and Safair merger
SA Airlink and Safair say they are disappointed by the decision and will approach the Competition Tribunal to allay the commission’s concerns
SA Airlink and Safair said they were disappointed by a decision by the Competition Commission to prohibit their proposed merger. In a joint statement on Friday, the two regional airlines said they would approach the Competition Tribunal to allay the Competition Commission’s concerns. The airlines announced their proposed merger in November 2017. The commission said on Friday that the transaction would be likely to result in a substantial prevention of competition. It said the merger would be likely to remove a competitor to Airlink, and that Safair offered competitive prices. A merger could result in substantial price increases, it said. Safair operates a passenger and cargo service and has a large share of the humanitarian-relief market in Africa. It has provided specialised aviation services since its inception in 1965. In 2013, it launched the regional low-cost carrier FlySafair in competition with, among others, the 100% South African Airways (SAA)-owned Mango Airlines. Airlink ...
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