The Gauteng High Court has ordered South African Airways (SAA) to pay Nationwide Airlines R104.6m for contravening the Competition Act in its second damages claim lawsuit.
Nationwide's attorney Lucinda Verster explains that SAA has been found to be abusing its market dominance on more than one occasion.
SAA was found guilty of inducing suppliers to cancel contracts with airline competitors by using incentives.
Verster explains that the defunct airline instituted its first complaint before the Competition Tribunal against SAA for anti-competitive conduct in 2001.
SAA was found guilty, fined and first settled with Nationwide out of court to pay damages in 2008, the same year that the airline shut down.
The competition authorities and High Court basically found that Nationwide would still be up and flying if it was not for SAA's conduct.— Lucinda VersterNationwide's attorney
She says that the case has set the precedent for damages claims from breach of the Competition Act.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:
This article first appeared on 702 : Nationwide's R104m lawsuit against SAA sets precedent