THE Competition Commission
has confirmed it will launch
an investigation into the
alleged collusion between
SAA and Mango and the
reported subleasing of
aircraft from SAA to Mango
at discounted rates. This
comes after the Commission
received what it called a
“valid complaint” from the
Democratic Alliance (DA) last
week.
Following Mango ceo, Nico
Bezuidenhout’s, resignation,
SAA released a statement
saying it had subsidised
the LCC through discounted
aircraft subleases (see
TNW June 22). A few days
later, SAA backtracked and
issued a ‘clarification’ in
which it said it had indeed
subleased a number of
aircraft to Mango, the total
cost to taxpayers of this
arrangement, the terms of
lease offered to Mango, and
the total amount of losses
to SAA attributed to the
subleasing agreement.
A spokesperson for the
Competition Commission
told TNW that, following
the DA’s complaint, the
Commission had launched
an investigation. “In terms
of the Competition Act, we
have a year to complete
the investigation,” he said,
adding that all would depend
on the complexity of the
case, as it might require the
expertise of an economics
analyst.
Competitors kulula.com and
FlySafair have welcomed the
Commission’s investigation.
FlySafair vp of sales and
distribution, Kirby Gordon,
says the investigation will
no doubt lay to rest any
uncertainty around this
issue. “From the airline’s
perspective, we’re inclined
to allow the Commission the
space they need to conduct
their investigation into the
matter, and we have faith
the Commission will be able
to implement corrective
measures should any
irregularities surface.”
“Comair raised the concern
that SAA would subsidise
Mango when it was launched
in 2006, but for the past
eight years both SAA and
Mango have defended the
position that all interactions
between SAA and Mango are
on an arm’s-length basis,”
says Susan Van Der Ryst,
corporate communications
manager of Comair and
kulula.com. “We are happy
to hear that the Competition
Commission will launch
an investigation into the
dealings between SAA and
Mango and will leave it to the
authorities to manage and
let the investigative process
take its course.”
Although SAA would not
give any further comments
besides its clarification
statement, spokesperson
for Mango, Hein Kaiser, told
TNW: “While Mango has
denied any subsidisation
and its shareholder issued
a clarification notice, Mango
will co-operate fully with any
queries or questions the
Competition Commission
may have vis-a-vis the
matter.”
