World Cup: Govt warns airlines

Cape Town - Deputy Transport Minister Jeremy Cronin on Thursday warned against excessive profiteering during the 2010 Fifa World Cup, saying it is not just about making "quick bucks".

Replying in the National Assembly to a statement by the Inkatha Freedom Party on excessive airline prices during the World Cup, he said government took this challenge seriously.

"What we are told, for the moment, by the airlines, is that there will be seasonal adjustments. This will obviously be a peak period for them, and they do not envisage going beyond seasonal adjustments," he said.

"However, we're not simply reassured by that and the Competition Commission is already looking into any possibilities and signs of collusion."

However, it was also necessary to take a broader perspective on the matter, Cronin said.

"And what we are saying to the transport sector, but [also] to all other sectors that will be actively involved during the 2010 World Cup, that we need to think it's not just about making quick bucks during this period.

"It's about laying down a legacy, and it's about, among other things, creating South Africa as a wonderful place to come to, that's affordable, it's accessible, it's safe, and so forth.

"And therefore, excessive pricing, whether it's in the hospitality sector, or the aviation sector, or any other sector, will be extremely short-sighted.

"But, of course, since we do have a mixed economy, we can't step in and simply regulate airline prices, but we will certainly watch very carefully for any signs of collusion," Cronin said.

- Sapa