SAA, Air Mauritius granted exemption to form a joint venture on various routes
JOHANNESBURG - The Competition Commission of South Africa said on Thursday it had granted an exemption to national carrier SAA and Air Mauritius to form a joint venture on the Johannesburg and Mauritius route and others.
In a statement it said the exemption, which has been granted for a period of five years, would allow the joint venture collaboration on the network, scheduling, revenue management and distribution across both carriers, thereby enhancing their existing bilateral offering.
South African Airways and Air Mauritius will align their economic incentives by pooling the revenue and costs associated with the provision of commercial passenger and cargo services on the trunk route between Mauritius and Johannesburg and the behind and beyond destinations.
"Further, these airlines will synchronize passenger and cargo capacity, expand their joint networks, access new markets (which may not have been economically feasible in the past) and deliver consumer benefits and create efficiencies that would not be possible without the proposed joint venture arrangement," the Competition Commission said.
The exemption has been granted as it achieves the objectives set out in ... the Competition Act, primarily as the cooperation between the two airlines will promote exports from South Africa."
- African News Agency (ANA)