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Tribunal grants 1time leave to amend complaint

Aug 02 2010 17:33

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Johannesburg - The Competition Tribunal said on Monday that it had granted JSE-listed airline group 1time Holdings [JSE:1TM] leave to amend its original complaint against rival Kulula.

In terms of the amendment, 1time wants Kulula to be fined for anti-competitive behaviour.

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. 

The original complaint by 1time reached the tribunal in April 2009. 

The original agreement between Kulula and Lanseria - concluded in 2006 and 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 complaint, 1time sought the imposition of a penalty on Kulula.

Kulula opposed the amendment application on two main grounds, namely lack of jurisdiction and failure to disclose a cause of action. 
  - I-Net Bridge

1time holdings  |  kulula


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