SA Airlink to challenge Safair merger ban
The Competition Commission has prohibited the proposed merger between SA Airlink (Pty) Ltd and Safair Operations (Pty) Ltd, as the transaction was likely to result in a substantial prevention of competition. According to a report on The Citizen site, SA Airlink said it was disappointed to learn that the commission has declined to approve the merger, and it will challenge the decision.
‘We respectfully disagree with the decision and the points the commission has raised to justify its decision,’ Airlink said. ‘We will approach the Competition Tribunal for an opportunity to address and allay the Competition Commission’s concerns, most of which relate to airline operational technical matters and for the Tribunal to reconsider our application,’ Airlink added.
The commission found that there are significant price differences between Safair and SA Airlink and that if the merger were to be approved, there was a likelihood of significant price increases. The commission further found that the merger was likely to result in co-ordinated effects through the exchange of competitively sensitive information between SAA and Safair (and SA Airlink) since SAA has a shareholding in SA Airlink.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
