The Portfolio Committees on Trade, Industry and Competition, and Transport want legal advice
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The Portfolio Committees on Trade, Industry, and Competition, and Transport have expressed their intent to seek legal advice regarding the potential launch of a parliamentary inquiry into "anti-competitive behaviour" within the country's low-cost airline sector.
This decision follows a joint meeting of the two committees earlier this week, where they discussed concerns about anti-competitive practices, overbooking, overpricing, and other challenges that have recently plagued the budget airline industry.
During the meeting, the National Consumer Commission (NCC) said that overbooking and overselling flight tickets violate the Consumer Protection Act (CPA), making such practices illegal, according to Moneyweb.
It was also revealed that before the Covid-19 pandemic, "the market share had been fairly spread among competitors and the market was reasonably open to newcomers. However, in the post-pandemic era, three role players dominate the market".
FlySafair came under scrutiny last year when a passenger was stranded at the airport despite having a valid ticket. The NCC confirmed that its investigation into the complaint against FlySafair remains ongoing.
Committee co-chairperson Mzwandile Masina said that the committees would seek legal advice based on the information gathered.
"We have started the process now and we have the necessary information from all the entities. The committees will then seek legal advice based on the information it has," Masina said.
Committee member Lucky Montana called on the NCC and the Competition Commission to assist the committees with their inquiry.
“They must respond promptly. Parliament has an obligation to act when a public complaint is submitted. We need their advice on the next steps we should take. Moreover, this issue requires a structural review, and a parliamentary inquiry could help address it, ultimately benefiting the industry,” Montana said.
Meanwhile, Poppie Khoza, CEO of the South African Civil Aviation Authority (SACAA), explained that the concept of low-cost airlines is not currently defined by any specific policy or legislative framework in South Africa.
“We may need to clarify by way of policy what the low-cost service airline is. This is an urgent issue that needs to be looked at and should be driven by the Department of Transport.” Khoza said.
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