Reference no: EM132656155

PRICE FIXING.

In 2020 the airline faced the threat of a fine to the value of K1.6billion for offering higher than industry standard commissions to travel agents to book passengers on Pro-flight. It was eventually fined K300million. The fine was paid during the first quarter and second quarter of 2020.

In September 2020 Pro-flight was facing new charges of price-fixing. It is one of the several airlines under investigations for partnering in a price-fixing cartel. Several airlines implicated in the cartel had already paid millions of dollars in fines for inflating cargo shipping prices. Pro-flight had budgeted K15million in its 2020/2021 budget to make provision for possible fines by international aviation authorities. The possibilities of having to settle civil claims remain. Pro-flight executives could also face prosecution in South Africa.

Questions:

1. Are there key ethical issues that can be identified in this case and if so, what are they?
2. How would you describe the ethical culture and levels of trust in Pro-flight?
3. What role could the governance of ethics have played if it had been in existence in the organisation?
4. Assess the leadership in Pro-flight from an ethical perspective.