SAA AND AIR MAURITIUS GIVEN GO-AHEAD FOR JOINT VENTURE

THE COMPETITION Commission has given SAA and Air Mauritius the green light to form a joint venture on the Johannesburg and Mauritius route and other related routes. The anti-trust body said yesterday that it had granted a 5-year exemption to the joint venture citing it enhanced their existing bilateral offering by allowing for the collaboration on the network, scheduling, revenue management and distribution across both carriers. “In terms of the joint venture, the two airlines will align their economic incentives by pooling the revenue and costs associated with the provision of commercial passenger and cargo services on the trunk route between Mauritius and Johannesburg, and the behind and beyond destinations,” said the commission. It said the airlines would synchronise passenger and cargo capacity, and expand their joint networks. It would also allow access to new markets which may not have been economically feasible in the past and deliver consumer benefits and create efficiencies that would not be possible without the proposed joint venture arrangement. “It is expected that the joint venture will equally benefit the South African economy as it will lead to increased foreign currency earnings, improved capacity utilisation and employment in fulfilment of some of the objectives of the act through increased passenger numbers, increased cargo capacity and increasing the route network in new markets,” said the commission. The exemption was granted as it achieved the objectives set out in the Competition Act. In terms of section 10 of the Competition Act, an exemption may be granted if an agreement or practice constitutes a prohibited practice in terms of Chapter 2 of the act and is found to contribute to either maintenance or promotion of exports, promotion of the competitiveness of small businesses or firms owned by historically disadvantaged persons.