Parliament's Portfolio Committee on Trade, Industry and Competition has called for an investigation into airline ticket prices.
Parliament wants the Competition Commission to look at FlySafair, Lift, Airlink, and CemAir tickets specifically and Committee chairperson Mzwandile Masina has accused the airlines of price gouging.
The committee also wants FlySafair to explain allegations of noncompliance with local laws.
Masina said that these airlines have increased tickets so high that it is making it almost impossible for South Africans to travel.
"The Competition Commission would have to make significant work in some areas. For instance, in the committee, we have already raised the issue that some budget airlines have come in and displaced SAA as budget airlines,” he explained.
“Their costs are exorbitant, and they are not affordable for our people. We will need to do a market inquiry in this regard and ensure that our people can move from province to province," Masina said.
The chairperson said that these airlines were introduced as budget airlines, but they are far from it.
“Even Airlink has been operating for more than 30 years as a regional airline, but with SAA's problems, they got involved in main city routes,” he explained.
“We will be approaching the Competition Commission through the Minister of Trade, Industry and Competition to call for a market inquiry into this."
FlySafair and its non-compliance
Masina announced that the committee is summoning FlySafair to appear before them and the Portfolio Committee on Transport.
This move comes after the International Air Services Council (IASC) recently discovered that FlySafair allegedly breached local licensing laws.
FlySafair has subsequently announced its intention to interdict the ruling, thereby delaying a decision on potential sanctions affecting its flights.
Masina said that there are allegations of noncompliance with certain sections dealing with the shareholding of foreign companies.
“FlySafair is outside of the regulation. We agreed to call the entity to formally brief Parliament and take up these issues,” he said.
“There are things happening in the industry and there is an attempt to block these sorts of reports. As Parliament, we play an oversight role to ensure that there is accountability," Masina said.
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