Comair, the operator of kulula and British Airways in SA, advised shareholders on Friday that it has entered into a full and final settlement agreement with South African Airways (SAA) regarding a case relating to SAA's incentive schemes for travel agents from 14 years ago.
Comair had initiated the case against SAA because it was of the view that these incentive schemes for travel agencies were anti-competitive in nature.
According to Comair, the scheme was designed to keep travel agents loyal to SAA, therefore, allegedly being in breach of the Competition Act. The scheme was in place from 2001 to about 2006.
The Supreme Court of Appeal has now made the settlement agreement between the two airline companies an order of court.
According to Comair, in terms of the settlement agreement, SAA will pay Comair a total settlement amount of R1.1bn plus interest as from the end of February until the end of July 2022 - or earlier if SAA elects to do so.
In addition, SAA will pay Comair's taxed legal costs incurred to date.