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UPDATE: SAS Braathens faces fine for illegal pricing - report.

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

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The Norwegian Competition Authority has reportedly ruled that Norwegian airline SAS Braathens, a subsidiary of the SAS Group, has been illegally underpricing its tickets.

The authority said that SAS had abused its dominant position on the Oslo-Haugesund route to try to force its competitor Coast Air out of business. According to the competition authority, SAS had cut prices so low they failed to cover the costs on the route. A fine of up to NOK20m has been proposed.

The fine would be low because the market is small and the violation did not last long, reported Reuters.

SAS Braathens has until 17 January 2005 to present its arguments before the competition authority takes a final decision in the matter, reported the online edition of the Norwegian newspaper Aftenposten.

SAS has also denied undercutting prices against domestic competitor Norwegian Air Shuttle. This separate case is currently being investigated.

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Publication:Airline Industry Information
Article Type:Brief Article
Geographic Code:4EUSW
Date:Dec 9, 2004
Words:170
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