FIFA World Cup airfare price-fixing investigated by watchdog

South Africa's consumer watchdog has launched an investigation into possible collusion by six airlines and pricing strategies to be adopted during the FIFA World Cup in South Africa this year.

South Africa's Competition Commission is now cracking down on several airlines for price-fixing after a tip-off by South African Airways, who blew the whistle in exchange for leniency in the investigation.

South African Airways, BA franchise carrier Comair, 1Time, SA Airlink, Mango and SA Express are the six airlines accused of planning to lift their airfares during the 2010 World Cup.

"The Soccer World Cup tournament provides South African business with a good opportunity to showcase our international competitiveness," said Shan Ramburuth, Competition Commission Commissioner.

"But it is also possible that some firms might want to exploit the situation by engaging in anti-competitive conduct. The Commission is obliged to investigate all legitimate complaints in such instances."

Already several of the airlines, including SA Airline and SA Express, have denied the allegations of price-fixing to local media, implying that they will be defending the charges.

e-Travel Blackboard approached South African Airways but due to the on-going investigation the airline has declined to  comment at this stage.