British Airways Under Price Fixing Investigation

It now appears that British Airways will be facing an investigation over allegations that it has been colluding with other airlines over the cost of flights within South Africa during the summer’s World Cup. Comair is one of the numbers of airlines named by the South African Competition Commission.

The inquiry was triggered by South African Airways, which is one of the other carriers that is under investigation. The airline made an application for leniency in return for co-operating with the country’s authorities. Other airlines that will be under investigation include SA Airlink, 1 Time, Mango, and SA Express.

Shan Ramburuth, the South African Competition Commissioner said that the Soccer World Cup tournament provides South African business with a great opportunity to showcase their international competitiveness. Its an opportunity which could have positive and lasting benefits. However, it is also possible that some firms might want to exploit the situation by engaging in anti-competitive conduct. The Commission is obliged to investigate all legitimate complaints in such instances.

The Football Supporters Federation’s director of international affairs, Kevin Miles, said that there is no question that airlines currently offering tickets to South Africa are very expensive. In a lot of cases, they have more than doubled their normal rates to Johannesburg and Cape Town. Airlines have formed together in ratcheting up prices around football matches, as well as other events.

The investigation of British Airways is yet another blow to the airline, which is currently facing huge losses and a strike threat. Right now British Airways is in a fight for survival, one that is not leaning in the airline’s favor.