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South Africa's competition watchdog is investigating major airlines in the country for colluding on airfare prices for the 2010 FIFA football World Cup.

The Competition Commission said on Thursday it had decided to launch an investigation after South African Airways (SAA) put through a leniency application in December in which it said it would co-operate with the Commission in its investigation, provided it was excluded from prosecution. The airlines being investigated are British Airways and Comair, South African Airways, 1Time, SA Airlink, Mango and SA Express.

"The soccer World Cup tournament provides South African business with a good opportunity to showcase our international competitiveness," Commissioner Shan Ramburuth said in a statement.

"But it is also possible that some firms might want to exploit the situation by engaging in anti-competitive conduct. The Commission is obliged to investigate all legitimate complaints in such instances."

The Commission said the Office of the President had also asked it in November to examine concerns that airlines planned to increase their airfares during the tournament.

It said SAA had provided it with email correspondence between the airlines which indicated they may adjust airfares ahead of the World Cup.

The Commission said it would refer the case to the Competition Tribunal for a hearing and request a penalty if the airlines were found guilty of having colluded to adopt similar pricing strategies.

South Africa, still feeling the effects of its first recession in 17 years, is the first African country to host the world's most watched sports event, which starts in June.