There are concerns over the grounding of Comair flights. The carrier suspended Kulula and British Airways flights after running out of money. Government is worried about the impact on tourism. Aviation Analyst, Desmond Latham discussed the situation with eNCA's Gareth Edwards. Courtesy of #DStv403
JOHANNESBURG - There's little the Competition Commission can do to ensure airlines don't hike prices due to Comair's grounding.
That's according to aviation expert, Desmond Latham.
He said the rules of supply and demand will kick in.
The commission met with airlines and received commitments that prices would not be inflated but passengers are already seeing increases of up to 30-percent.
"I understand the Competition Commission's position if airlines refuse to raise prices then they're colluding, they're doomed if they do and if they don't. Prices have already gone up by around 30 percent and that's a natural supply and demand," Latham said.
"I don't know if the Competition Commission can step in to do this. We're not a centrally managed socialist state, we have market capitalists that run this system. So there's a limit to what the Competition Commission can do. The bottom line is airlines have raised it."