SAA too quick off the mark
From Sunday Times : Roger Makings
South African Airways has prematurely announced its membership of Star Alliance, a 15-member grouping of international airlines. SAA's entry to the club now hangs in the balance, as the Competition Comission must first investigate the impact this will have on local competitors.
This means that SAA has not become the 16th member of the Star Alliance - as it erroneously announced on Friday and as reported in Business Times this weekend.
Andile Mabizela, SAA's executive vice president commercial, admitted yesterday that the airline had only realised on Friday that Competition Comission sanction was pivotal before the proposed membership could be signed and accepted by Star in Singapore yesterday.
"We will, for the moment, have to sign a memorandum of understanding instead" he said.
Mabizela said the mix up was an "oversight", following "a warning only late in the week" that SAA could not go ahead with the signing. "If the Competition Comission takes the view that joining the Start Alliance is anti-competitive, then we will have to walk away from the deal", he said.
The signing will take place in six month's time, provided the Competition Comission gives the go-ahead.