Low-cost airlines face off in new fares battle
Article from http://www.businessday.co.za/
Low-cost airlines face off in new fares battle
Khulu Phasiwe
Public Policy Correspondent
THE price war between SA’s low-cost carriers has stepped up a gear, with newcomer Mango offering 10000 seats between Johannesburg and the major coastal destinations for less than R250 a trip.
Mango, which was launched in November, offers one-way tickets between Johannesburg and Durban for R197 and R249 for Johannesburg to Cape Town.
Customers have until next Monday to make bookings, and all discounted tickets must be used this month.
In a bid to counter Mango’s offer, SA’s second-largest no-frills airline, 1time, on Friday announced its “New Year’s special” ticket sale on the same routes.
The airline said its one-way tickets between Johannesburg and Durban would cost R189, while a one-way trip between Johannesburg and Cape Town would cost R239. Their special fares are also valid only until the end of the month.
Although the no-frills market leader kulula.com has not formally announced new fares, its website showed that its “bargain” prices for the same period were R168 a trip between Johannesburg and Durban.
A one-way trip between Johannesburg and Cape Town costs R248.
Although analysts said such low prices were indicative of how affordable air travel could be, they have warned that they cannot be sustained.
The Association of South African Travel Agents (Asata), which represents more than 500 travel agents and tour operators, said: “What we are seeing now with the price war is exactly what happened when 1time entered the market (in February 2004) — it is short-term in nature and not sustainable.”
The association said it was inevitable that Mango would soon have to increase its prices to avoid operating at a loss.
However, Mango CEO Nico Bezuidenhout said the company would keep its operating costs down by using four “fuel-efficient” Boeing 737-800s leased from SAA. The aircraft consumed 10% less fuel than other models. Mango also had only 289 employees, including managers, and most sales were made online or by telephone.
Low cost car hire in Cape Town? www.wisewheels.co.za
Low-cost airlines face off in new fares battle
Khulu Phasiwe
Public Policy Correspondent
THE price war between SA’s low-cost carriers has stepped up a gear, with newcomer Mango offering 10000 seats between Johannesburg and the major coastal destinations for less than R250 a trip.
Mango, which was launched in November, offers one-way tickets between Johannesburg and Durban for R197 and R249 for Johannesburg to Cape Town.
Customers have until next Monday to make bookings, and all discounted tickets must be used this month.
In a bid to counter Mango’s offer, SA’s second-largest no-frills airline, 1time, on Friday announced its “New Year’s special” ticket sale on the same routes.
The airline said its one-way tickets between Johannesburg and Durban would cost R189, while a one-way trip between Johannesburg and Cape Town would cost R239. Their special fares are also valid only until the end of the month.
Although the no-frills market leader kulula.com has not formally announced new fares, its website showed that its “bargain” prices for the same period were R168 a trip between Johannesburg and Durban.
A one-way trip between Johannesburg and Cape Town costs R248.
Although analysts said such low prices were indicative of how affordable air travel could be, they have warned that they cannot be sustained.
The Association of South African Travel Agents (Asata), which represents more than 500 travel agents and tour operators, said: “What we are seeing now with the price war is exactly what happened when 1time entered the market (in February 2004) — it is short-term in nature and not sustainable.”
The association said it was inevitable that Mango would soon have to increase its prices to avoid operating at a loss.
However, Mango CEO Nico Bezuidenhout said the company would keep its operating costs down by using four “fuel-efficient” Boeing 737-800s leased from SAA. The aircraft consumed 10% less fuel than other models. Mango also had only 289 employees, including managers, and most sales were made online or by telephone.
Low cost car hire in Cape Town? www.wisewheels.co.za
