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SAA to appeal Comair fine

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The Supreme Court of Appeal (SCA) in Bloemfontein is expected to hear the matter between South African Airways (SAA) and Comair.

The High Court in Johannesburg ordered SAA to pay more than R1 billion in damages to Comair for anti-competitive conduct.

However, SAA is appealing the High Court verdict and wants the amount to be reduced to just over R300 million.

The matter relates to a case initiated by Comair against SAA 16 years ago.

It revolves around SAA’s anti-competitive travel agents incentive scheme. The scheme was in place from 2000 to 2005 and was designed to keep travel agents loyal to SAA.

SAA further argues that there will be a substantial variation between the SCA’s own assessed damages and those awarded by the High Court.

Comair, which is the holding company of British Airways and Kulula airlines, has hit back.

In its cross-appeal, Comair submits that its market share would have continued to grow over the relevant period. As a result, Comair seeks an increase of 344-million rand in damages awarded in the second action. This will be to a total amount of almost 800-million rand, plus interest.

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