South Africa based Airlink airliner will be prosecuted on charges of excessive and predatory pricing.. says South African Competition Commission (SACC).
The regulator reported to have made the decision to prosecute Airlink, following complaints received about Airlink’s business practices on the Johannesburg O.R. Tambo-Mthatha route.
The complainants alleged that Airlink’s prices were excessive before Fly Blue Crane entered the market. According to local media, the Airlink had offered a return flight to the capital of the former Transkei homeland for ZAR4,000 as compared to Fly Blue Crane which charged only ZAR799 for a one-way ticket. Airlink ran the route twice daily on weekdays and daily on weekends. However, on Fly Blue Crane’s entry, Airlink proceeded to add a third daily frequency while slashing fares to ZAR2,000 return.
The SACC is seeking an administrative penalty of up to 10% of Airlink’s annual turnover for both the conduct of excessive pricing and predatory pricing. In addition, the Commission has asked the Tribunal to determine other appropriate remedies in order to correct the conduct.