Regulator puts brakes on SA Airlink’s merger with FlySafair

The regulator found that the proposed merger is a substantial prevention or lessening of competition.

“It was a bad deal for competition because it was eliminating a competitor in the aviation space,” says the commission’s Sipho Ngwema.

FlySafair has been dubbed the country’s lowest-cost airline.

The commission believes consumers would have felt the pinch if the merger was approved.

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“The consumer is going to be deprived of fairer and lesser prices from Fly SAfair because SA Airlink is more expensive,” explains Ngwema.

The Competition Commission also saw red flags regarding an existing agreement SA Airlink has with embattled national carrier, South African Airways (SAA).

“South African Airways have shares in SA Airlink and there is an agreement of certain routes. We were worried about the coordinated effect.”

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The decision comes as President Cyril Ramaphosa revealed that there are looking at a strategic equity partner for SAA.

“When you eliminate them, you are strengthening the monopoly in terms of the control of routes and we cannot allow that.”