An announcement by South African Airways (SAA) alleges that the carrier subsidises aircrafts to the low-cost airline Mango.
Independent transport economist Joachim Vermooten believes that competition authorities and market participants should investigate the claims, which have serious market implications.
In a statement responding to the resignation of Mango CEO Nico Bezuidenhout, SAA disclosed that it was subsidising Mango by subleasing to its entire fleet at discounted rates.
Vermooten says that if the claims are true, it could distort market forces and give Mango an unfair benefit.
It's an amazing admission. Up to now, it was always argued that SAA and Mango's relationship is strictly arms length.— Joachim Vermooten, Independent transport economist
Listen to the full conversation from The Midday Report with Stephen Grootes: