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Complaint about Kulula's pricing on CT - Durban route

  • Focus Area:

    Transport and logistics
    Competition economics
    Competition and Regulatory Economics

  • Area of Expertise:

    Abuse of dominance and prohibited practices

  • Client:

    Kulula (Comair)

  • Countries:

    South Africa

  • Date:

    2011

  • Project name:

    Complaint in respect of Kulula's pricing on the Cape Town to Durban route

Genesis was retained by the legal advisers to the Kulula airline to assist in responding to a complaint being investigated by the Competition Commission pricing on the Cape Town to Durban route following the exit of SAA on the route.

The project team’s deep understanding of airline industry economics was critical in its assessment of the passenger fares and pricing.

The team was able to demonstrate that it was a reduction in capacity immediately following SAA's exit from the route that had resulted in utilisation levels increasing and more passengers purchasing higher-priced fares that had led to an average increase in fares.

The complaint was ultimately dismissed by the Commission.

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