Price Fixing Allegations Plague British Airways

South Africa’s Competition Commission has officially begun an investigation into price fixing for airline tickets during the FIFA World Cup, scheduled to be held in the country for the 2010 match. British Airways as well as their sister carriers South African Airways and Comair have fallen at the height of the rumored charges. SA Airlink, SA Express, Mango, and 1Time are also being looked at under the investigation.

Shan Ramburuth, the Commissioner for the investigation, said that the World Cup soccer tournament was a great opportunity for South African businessmen to display their ability for international competition. she added that the showcase could have benefits for the country’s international business relations.

She continued explaining that it was believed that some firms were currently trying to exploit the opportunity which would be damaging to the country’s image. The Commission will investigate any legitimate complaints accusing firms of engaging in anti-competitive behaviour.

For months, air fares for the times surrounding the World Cup have sparked heated debate with the cheapest fares for the June dates around the World Cup listed as £329 for a flight from Cape Town to Johannesburg. This figure is nearly double what the same flight is listed for in May.

After the investigation was announced, South African Airways filed for leniency and has promised complete cooperation with the commission. So far the airline has given up information regarding which carriers have engaged in price fixing, the information has also indicated that airlines may plan to charge peak rates for all routes since it was impossible to predict which routes would be the most popular.