Johannesburg - Troubled low-cost airline Skywise is taking Airports Company SA (Acsa) to the Competition Tribunal for alleged unfair treatment in the industry.
The move comes in the wake of the Competition Commission’s decision not to proceed with the airline’s complaint in December, in which Skywise accused Acsa of “a prohibited practice”.
Read: Acsa in breach of contract - Skywise
Skywise claimed that Acsa had refused it access to an essential facility after grounding its flights because of an unsettled debt.
“We believe that Airports Company SA is not treating the airlines equally. Strange things are happening in the South African market. You will be puzzled by some of the things happening. It is too early to reveal some of the things,” Skywise co-chairman Tabassum Qadir said yesterday.
Last month the commission said that it would not pursue the complaint as the alleged conduct did not amount to a contravention of the Competition Act but a contractual dispute between Skywise and Acsa. Skywise is also involved in a legal battle with Acsa over the grounding of its aircrafts, which it claimed cost R50 million in revenue.
Major blow
The suspension of the flights has dealt Skywise a major blow and could see it go bust, similar to other new entrants in the local airline market. Airlines that have bitten the dust include Nationwide, 1Time and Velvet Sky. Nationwide, which is currently in liquidation, is suing SAA for for R325m in damages.
The court case is a sequence of a 2010 ruling of the tribunal that SAA had contravened the Competition Act.
Qadir said the airline would lodge a complaint with the tribunal next week. “This is not just a contractual dispute. And we will prove that. Rules must apply for everyone. It does not matter who it is,” Qadir said.
Risk profile
The tribunal’s spokeswoman, Chantelle Benjamin, said Skywise was within its rights to upscale the matter to the tribunal, adding that the airline could also refer the matter to the Competition Appeals Court – the highest authority on competition matters.
Aviation analyst Linden Birns said it was unclear why Skywise would be treated differently, noting that Acsa was entitled to consider the airline’s risk profile like any commercial arrangement.
“Acsa is regulated in that its tariffs are set up by a regulator. These are published. Beyond that, any commercial arrangement is between Acsa and the airline,” Birns said.
Birns said he could not recall a case where an airline had taken issue with Acsa purely because of commercial reasons.
“In the past there have been instances where companies were not happy with the civil aviation authority.”
BUSINESS REPORT