Nationwide, Comair react to SAA fine

NATIONWIDE has confirmed it will continue its lawsuit against strike-beleaguered South African Airways. This after the national carrier was ordered to pay R45m to the Competitions Commission for abusing its dominant position in the domestic airline market. Rodger Whittle, Nationwide’s executive manager of cabin operations and commercial services, told Travel News Now that the airline would be pursuing its legal case against the national carrier. “We are very pleased with the outcome and are ready to move forward with our action. We would like to move as quickly as we can,” he said. Stuart Cochrane, BA Comair's executive manager, sales and marketing, has also confirmed the airline is extremely pleased with the tribunal’s decision. “This sets a precedent. Our case is similar, but the complaint we made was over five years as opposed to one.” The Tribunal declaration means both Comair and Nationwide will be able to proceed with a civil claim against SAA in the High Court if they can prove they suffered damages as a result of the abuse during the relevant period. According to a Tribunal statement, SAA’s decision to make the existing override benefits more “challenging” for travel agents to secure was found objectionable. The resulting raised target levels and lower basic commission meant that agents had to sell more SAA tickets just to maintain their previous level of profitability. The Tribunal said this had encouraged agents to sell SAA tickets to their customers as opposed to those of Nationwide and Comair. (Natalia Thomson and Kate Nathan)