CemAir asks tribunal to prohibit Harith acquisition of Safair

Privately-owned South African airline CemAir has requested the Competition Tribunal to prohibit the proposed acquisition of Safair Holdings by Harith Aviation. Solicitor Dwight Snyman, representing CemAir, argued that the transaction could harm competition and should be subject to stringent conditions before approval. Snyman emphasized that behavioral undertakings are insufficient, and any conditions must be objectively measurable, independently monitored, and capable of addressing non-price discrimination and formal refusals of access.

He suggested potential conditions such as independent airport governance, removal of common directors, enforceable information firewalls, transparent slot and tariff criteria, equal-access obligations, and a rapid dispute-resolution mechanism. The Competition Commission previously recommended that the tribunal approve the transaction with conditions related to Harith's interest in Lanseria International Airport.

Snyman stressed the importance of this inquiry, as Harith Aviation is part of a broader network of investment funds, infrastructure assets, and institutional investors operating in the South African aviation sector. He highlighted that the merger would bring a substantial domestic airline under the joint control of an entity with a significant interest in airport infrastructure, potentially altering the competitive landscape and influencing competition between Lanseria and other airports.

Snyman called for the tribunal to consider the collective ownership relationships, including the government's majority stake in South African Airways and Airports Company South Africa, the Public Investment Corporation's significant shareholdings, and the potential economic exposure of various entities to the Lanseria airport.