20°C / 22°C
  • Sat
  • 27°C
  • 11°C
  • Sun
  • 29°C
  • 14°C
  • Mon
  • 30°C
  • 17°C
  • Tue
  • 29°C
  • 16°C
  • Wed
  • 22°C
  • 15°C
  • Thu
  • 18°C
  • 15°C
  • Sat
  • 23°C
  • 16°C
  • Sun
  • 22°C
  • 16°C
  • Mon
  • 21°C
  • 16°C
  • Tue
  • 22°C
  • 15°C
  • Wed
  • 23°C
  • 15°C
  • Thu
  • 25°C
  • 15°C
  • Sat
  • 29°C
  • 13°C
  • Sun
  • 32°C
  • 15°C
  • Mon
  • 34°C
  • 19°C
  • Tue
  • 32°C
  • 19°C
  • Wed
  • 27°C
  • 18°C
  • Thu
  • 21°C
  • 17°C
  • Sat
  • 28°C
  • 13°C
  • Sun
  • 30°C
  • 17°C
  • Mon
  • 30°C
  • 19°C
  • Tue
  • 26°C
  • 17°C
  • Wed
  • 27°C
  • 16°C
  • Thu
  • 21°C
  • 16°C
  • Sat
  • 27°C
  • 18°C
  • Sun
  • 26°C
  • 20°C
  • Mon
  • 23°C
  • 20°C
  • Tue
  • 22°C
  • 18°C
  • Wed
  • 23°C
  • 20°C
  • Thu
  • 23°C
  • 21°C
  • Sat
  • 20°C
  • 16°C
  • Sun
  • 18°C
  • 15°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 19°C
  • 11°C
  • Wed
  • 20°C
  • 13°C
  • Thu
  • 19°C
  • 13°C
  • Sat
  • 29°C
  • 15°C
  • Sun
  • 26°C
  • 16°C
  • Mon
  • 26°C
  • 14°C
  • Tue
  • 28°C
  • 12°C
  • Wed
  • 32°C
  • 13°C
  • Thu
  • 32°C
  • 15°C
  • Sat
  • 22°C
  • 15°C
  • Sun
  • 20°C
  • 15°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 21°C
  • 13°C
  • Wed
  • 23°C
  • 14°C
  • Thu
  • 26°C
  • 15°C
  • Sat
  • 31°C
  • 15°C
  • Sun
  • 34°C
  • 17°C
  • Mon
  • 35°C
  • 19°C
  • Tue
  • 33°C
  • 20°C
  • Wed
  • 28°C
  • 18°C
  • Thu
  • 22°C
  • 18°C
  • Sat
  • 35°C
  • 18°C
  • Sun
  • 31°C
  • 17°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 30°C
  • 14°C
  • Wed
  • 30°C
  • 13°C
  • Thu
  • 23°C
  • 16°C
  • Sat
  • 26°C
  • 13°C
  • Sun
  • 31°C
  • 14°C
  • Mon
  • 28°C
  • 15°C
  • Tue
  • 28°C
  • 16°C
  • Wed
  • 28°C
  • 16°C
  • Thu
  • 27°C
  • 18°C
  • Sat
  • 20°C
  • 14°C
  • Sun
  • 17°C
  • 15°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 20°C
  • 11°C
  • Wed
  • 20°C
  • 12°C
  • Thu
  • 20°C
  • 13°C

SAA bailouts could help fund anti-competitive behaviour, Parly told

A Wits University think-tank says that the national carrier has a history of abusing its market dominance to shut out competitors.

An SAA aircraft. Picture: AFP.

CAPE TOWN - Bailing out South African Airways (SAA) might keep the airline aloft but could also help fund anti-competitive behaviour on the part of the national carrier, Parliament has been told.

The standing committee on appropriations has been holding hearings on how best to deal with SAA’s crippling debt and refinancing.

A Wits University think-tank says that the national carrier has a history of abusing its market dominance to shut out competitors.

New airlines entering the market can boost traffic, bring down prices and help local economies benefit from more tourists, says the Centre for Competition, Regulation and Economic Development.

But the centre’s Anthea Paelo says that few new airlines survive and that SAA has twice been fined for abusing its dominance in the market, while it's been found guilty of price-fixing on three occasions.

"It begs the question if SAA is not competitively viable and is flying airlines that are not effective, how is it managing to meet or to lower prices to match the low-cost carriers. Where is it finding the finances to do that?"

Paelo says that SAA has racked up the highest number of anti-competitive offences for any single firm in the country.

"We may need to consider that some of the funding that we are availing them (SAA) may be facilitating this."

Paelo has suggested that policy should perhaps focus on increasing opportunities for new entrants into the market rather than subsidising SAA.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus