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South Africa: SAA-AIR Mauritius granted exemption to form joint venture

By  |  October 24, 2019

The Competition Commission has granted an exemption to South African Airways and Air Mauritius Limited to form a joint venture on the Johannesburg and Mauritius route and other related routes.

The exemption allows the JV collaboration on the network, scheduling, revenue management and distribution across both carriers, thereby enhancing their existing bilateral offering.

In terms of the JV, the two airlines 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.

Full Content: Comp Com

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