Airlink defends conduct in Mthatha route case before Competition Tribunal

Regional airline says contested route was marked by high re-establishment costs, not predatory pricing

- BANELE GININDZA

THE case follows a referral by the Competition Commission, based on complaints lodged between 2015 and 2017 by business executive Khwezi Tiva, the OR Tambo District Chamber of Business, and FBC itself. | SUPPLIED

(SUPPLIED)

REGIONAL airline Airlink has defended its operations on the Johannesburg-Mthatha route, telling the Competition Tribunal on Monday that its presence on the contested route was marked by losses, high reestablishment costs, and difficult operating conditions rather than predatory pricing.

The Tribunal this week resumed hearings into allegations that Airlink abused its dominance on the route between 2012 and 2016, when new entrant Fly Blue Crane (FBC) briefly competed before exiting the market.

The case follows a referral by the Competition Commission, based on complaints lodged between 2015 and 2017 by business executive Khwezi Tiya, the OR Tambo District Chamber of Business, and FBC itself.

The complainants accused Airlink of imposing excessive fares when it held a monopoly and then slashing prices aggressively to drive out competition once FBC entered the market.

Airlink, however, argued that its operations on the route had been far from consistently profitable.