South Africa looks out for World Cup airline collusion
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South Africa's competition commission is looking into possible airline price collusion around the 2010 FIFA World Cup, South Africa's deputy transport minister Jeremy Cronin said on Thursday.
Cronin was speaking in South Africa's parliament where he warned against excessive profiteering during the tournament.
"What we are told, for the moment, by the airlines, is that there will be seasonal adjustments. This will obviously be a peak period for them, and they do not envisage going beyond seasonal adjustments," he said.
"However, we're not simply reassured by that and the competition commission is already looking into any possibilities and signs of collusion." Cronin also said it was necessary to take a broader perspective on the matter.
"And what we are saying to the transport sector, but [also] to all other sectors that will be actively involved during the 2010 World Cup, that we need to think it's not just about making quick bucks during this period".
According to the South African Press Association he said that for South Africa the FIFA World Cup was about laying down a legacy, and creating South Africa as a wonderful place to come to, that's affordable, accessible, and safe.
"And therefore, excessive pricing, whether it's in the hospitality sector, or the aviation sector, or any other sector, will be extremely short-sighted."
However, he said since South Africa has a mixed economy, "we can't step in and simply regulate airline prices, but we will certainly watch very carefully for any signs of collusion".
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