SAA fined R18m for fixing ticket prices

South African Airways and Singapore Airlines have to pay penalties for fixing flight prices, the Competition Commission said yesterday.

The price fixing was for flights between Johannesburg and Hong Kong.

SAA is to pay an R18.8-million settlement, while Singapore Airlines would pay R25.1-million, the commission said.

The investigation into price fixing started in January 2008 after Cathay Pacific applied for leniency.

Other cases against SAA were also settled in the agreement. These related to collusion in international air cargo surcharges and domestic route prices, and pricing strategies for the 2010 soccer World Cup.

"However, no findings were made against SAA in respect of these two matters," the commission said.

An investigation into cargo fuel surcharges was referred to the Competition Tribunal in July 2010.

"SAA has offered its full cooperation to the commission in its continuing investigations and prosecution of both matters before the tribunal.

"Similarly, Singapore Airlines undertook to do the same with regard to the Far East matter," the commission said.