Competition Tribunal confirms settlement agreement with SAA

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The Competition Tribunal has confirmed a settlement agreement with SA Airways.

In terms of the settlement agreement, the national carrier will pay an administrative penalty of R18m, which is 2.5% of its combined turnover derived from its Johannesburg-Hong Kong route for the 2012 financial year.

SAA has also undertaken to co-operate with the competition commission in any ongoing investigation and prosecution of the remaining respondents in the suite of complaints.

The competition commission began a probe in 2006 into SAA and seven other airlines for contravening the Competition Act by fixing rates of fuel and other surcharges on the transport of cargo on routes to and from South Africa.