SA Launching Investigation Into World Cup Flight Hikes
January 29, 2010
South Africa (ChattahBox) – A mass investigation of all major airlines in South Africa was sparked after numerous calls by citizens to President Jacob Zuma about outrageously high flight rates leading up to the World Cup.
According to South African officials, an investigation into a possible price-fixing scheme has been opened.
Among those being probed are South African Airways (SAA), BA/Comair companies, such as Kulula.com and British Airways domestic, 1Time, SA Airlink, SA Express and Mango.
SAA has already approached the courts, asking for ‘leniency’ in exchange for information on the other airlines.
SAA has already been found guilty of price-fixing once before, back in 2006.
The alleged price-fixing has led to incredible hikes in the costs of flights both domestically and Internationally, which would allow for travel leading up to the 2010 Fifa World Cup.
“Through the presidential hotline we received numerous complaints regarding the price of air tickets during the World Cup, and took the initiative to ask the Competition Commission to look into it,” Zukile Nomvete, who is the head of the 2010 presidency coordinating unit said in an official statement.
“We hope the commission will resolve this matter timeously to ensure that this does not prove detrimental to the tournament and to tourist attraction.”
If the airlines are found guilty they could be facing a maximum fine of a full 10% of their annual earnings.
While all but SAA deny price-fixing, the flight rates seem to speak for themselves, with some being as much as triple the usual cost.