Robust competition law compliance initiative is called for

analysed various ways in terms of which the quantum of damages was to be calculated in order to establish a robust methodology for such quantification. SAA is to pay interest on the damages award until the date of full settlement in addition. It is of grave concern that SAA has over an extended period of time, in actual fact almost since inception of the Competition Act, been hauled before the competition authorities in relation to allegations of anti competitive behaviour.

Penalties

Various claims for anti-competitive conduct have been investigated against SAA and the airline has been ordered to pay administrative penalties during 2004 (R15m), 2005 (R20m), 2006 (R20m) and 2010 (R18 799 292). This is in addition to the R45m administrative penalty being levied during 2005. The amount that SAA has paid in terms of penalties and civil claims for anti-competitive behaviour has reached a significant amount. To add to this dim picture, the current claim for civil damages by Comair could impact the overall figure significantly.

Comair has instituted a civil claim for damages against SAA for the same conduct that Nationwide had complained about. The Comair claim was argued during the week of August 22. In its voluminous court papers, Comair presented a model produced by an expert witness that showed the total damages suffered by Comair amounted to R898m. Comair also asked the court for 15.5 percent interest, which would push the total damages claimed to about R2bn. We await the final outcome. Clearly, a robust competition law compliance initiative is called for if one would endeavour to bring healing to the broken SAA.