The South African Competition Commission has referred Airlink to the Competition Tribunal for prosecution on charges of excessive and predatory pricing on the Johannesburg-Mthatha route.
This stems from complaints lodged by businessman Khwezi Tiya‚ Fly Blue Crane and the OR Tambo District Chamber of Business between 2015 and 2017. They alleged that Airlink‚ a privately controlled regional feeder airline‚ had excessive pricing before Fly Blue Crane entered the route.
Airlink is alleged to have then lowered its prices below its costs, referred to as predatory pricing, when Fly Blue Crane entered the route. Another claim is that Airlink went back to its exorbitant prices after Fly Blue Crane exited the route in January 2017.
Full Content: Sowetan Live
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