SAA ordered to pay Comair more than R1 billion

South African state carrier SAA has been ordered to pay out a sum of more than R1 billion to Comair by the South Gauteng High Court.

Comair, who runs low cost carrier Kulula and a domestic franchise of British Airways, accused South African Airways (SAA) of anti-competitive behavior fourteen years ago, claiming that it’s travel agent scheme, which offered incentives to travel agents to keep them loyal to SAA, was in violation of South Africa’s competition¬†act.¬†The judgement details that SAA has to pay Comair R554 million plus interest at 15.5 percent, which amounts to about R1.16 billion.

Comair is the second airline that has succeeded in taking SAA to task about their anti-competitive behavior, with liquidated airline Nationwide having won a settlement of more than R100 million last year.

Gerard Griessel

Technical Writer at AerospaceJournal.com

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