Tribunal hears new evidence of excessive pricing by SA Airlink – SABC News
The Competition Tribunal has heard fresh evidence in the excessive and predatory pricing case against SA Airlink.
Economic expert for the Competition Commission, Jason Aproskie, testified that the airline overstated the value of its assets by using a method known as gross replacement value.
It is the full cost required to replace an asset with a new equivalent, including costs like purchase price, delivery, installation and other associated expenses.
Aproskie argues that this approach inflated the costs that any new competitor would face when trying to enter the market.
This would have the effect of allowing Airlink, as the incumbent, to benefit from higher ticket prices and excess profits.
The latest economic testimony follows earlier submissions from factual and financial experts.
Airlink faces prosecution after the Competition Commission investigated three complaints relating to its pricing conduct on the Johannesburg-Mthatha route between September 2012 and August 2016.