The Competition Commission (Commission) brought an application
to the Tribunal to confirm a settlement agreement entered into with
Singapore Airlines.
On 16 January 2008, the Commission initiated an investigation
against South African Airways (SAA), Singapore Airlines and
Malaysian Airlines for their involvement with Cathay Pacific in a
cartel to fix airfare increases on flights from South Africa to Far
East Asia.
The Commission found that in engaging in market fare discussions,
Singapore Airlines contravened the Competition Act as its local
representative relied on the content of the discussions to
determine fares for flights out of South Africa to South East Asia,
Hong Kong and China.
In its settlement with the Commission, Singapore Airlines admitted
that it engaged in market fare discussions with SAA, Malaysian
Airlines and Cathay Pacific.
Singapore Airlines has agreed to pay an administrative penalty of
ZAR25 106 692, which represents 7.5% of its 2009 annual turnover
out of South Africa, and has further agreed to incorporate
corporate governance in its competition law compliance programme to
ensure that no employee, manager or director engages in any
contraventions of the Competition Act.
Source
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