The Competition Tribunal says low-cost airline 1time’s bid to break up an exclusive agreement between rival kulula.com and privately owned Lanseria Airport has merit.
Business Report newspaper says Kulula.com avers it was awarded exclusive rights until next February because it invested in facilities at the airport west-northwest of Johannesburg. 1time complains it has been locked out of the increasingly popular business traveller routes from Lanseria to Cape Town, Durban and other destinations by the anti-competitive agreement.
The business broadsheet says the airline is anxious to start operations from Lanseria as soon as possible because it is less crowded than state-owned Airports Company SA-operated OR Tambo International Airport and its costs are lower.
The tribunal has also given 1time more time to amend its complaint to include a call for kulula.com to be penalised with an administrative penalty of up to 10% of its turnover. Kulula.com says a penalty would be unjustified and was not suggested in 1time’s original complaint.