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1time to modify Kulula complaint

Johannesburg - JSE-listed airline group 1time [JSE:1tm] has indicated it wants its rival Kulula to be fined for anti-competitive behaviour as it prepares to modify its original complaint on Friday.
 
The penalty would amount to 10% of Kulula's annual turnover. Kulula is a subsidiary of JSE-listed Comair [JSE:COM].
 
1time will on Friday apply to amend its original complaint against Kulula, according to the Competition Tribunal.
    
In the original complaint, 1time alleged that Lanseria, which owns Lanseria Airport, and Kulula concluded an exclusivity agreement that contravened competition rules.

The agreement between Lanseria and Kulula involves the operation of scheduled airline services to and from the Lanseria Airport.  

This original complaint reached the tribunal in April 2009.  
    
The original agreement - which was concluded in 2006 and will last for five years, ending in February 2011 - contains an exclusivity clause in favour of Kulula for the first year of the agreement, which expired in early 2007.
 
A right of first refusal vests in Kulula and it can agree or refuse to allow other airlines to fly scheduled flights from Lanseria.

In terms of the amendment of the original, 1time seeks the imposition of a penalty on Kulula.

 - I-Net Bridge

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