SAA-Mango collusion: Competition Commission accedes to DA’s request to investigate

23 June 2016

The Competition Commission (CC) has confirmed and furnished in writing to the DA, the case number of the investigation into the alleged collusion between SAA and Mango Airliners that has seen the latter being able to offer drastically discounted flights through subleasing of aircraft at discounted rates by SAA.

The DA welcomes the CC’s agreement to investigate our request. This is a step towards evaluating and restricting uncompetitive business practices in the airline industry.

We will be ensuring that the CC sees this investigation out to the end and does so in a quick and efficient manner, we will be ensuring that the ever influential Chairperson of SAA, Dudu Myeni, does not use her political connections to interfere with the investigation.

It is important to the integrity of the CC investigation that all proceedings are both transparent and independent. We will be closely monitoring this, especially given the numerous scandals that have flowed from anything involving near-bankrupt SAA.

The DA’s investigation to the CC seeks to ascertain the following:

- The benefits and possible kickbacks for SAA in leasing aircraft to Mango;

- The total cost to taxpayers due to this arrangement;

- The entire lease period and the terms of lease offered to Mango; and

- The total amount of losses to SAA attributed to the subleasing agreement. 

We need SAA to be held accountable for all negligent spending of state funds, it is time for all South Africans to be put first and the DA will ensure this is the case as with all government spending. 

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 23 June 2016