Low-cost airlines still flying high
THERE is still scope for more growth in South Africa’s low-cost airline industry.
This is despite the launch of South Africa’s third low-cost carrier, Mango, during the peak holiday season last year.
At the time of Mango’s launch, analysts said that though Mango would bring a price correction in the airline industry, the market was not big enough for three low-cost carriers and one carrier would suffer.
Jackie Walters, a transport economist from the University of Johannesburg, said the position of the other two airlines remained unchanged and Mango had in fact stimulated the market to a certain degree.
“Mango has not had a negative impact on 1time or kulula.com and the market definitely still has a lot of room for growth.”
South Africa’s three low-cost carriers, Mango, kulula.com and 1time, enjoy about 30 percent market share.
Despite the fact that low-cost airline tickets cost almost the same as a long-distance bus trip, only 7.5 percent South Africans fly.
Low-cost airlines are vying to increase those figures and South Africa is slowly joining the global community in offering options for cheaper flights.
Mango is riding on the tail of SAA, its parent company, and Walters believes that it has taken some of SAA’s full-fare paying passengers.
Kulula.com says it is not perturbed by Mango or its low ticket prices and the six-year-old airline remains the strongest player of the three low-cost airlines in the South African market.
Glenda Zvenyika, communications manager at Comair, the owners of kulula.com, said: “We were the first player in the local low-fare market and the first to revolutionise local air travel and have never compared ourselves to other players.”
Article from http://www.sundaytimes.co.za/
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This is despite the launch of South Africa’s third low-cost carrier, Mango, during the peak holiday season last year.
At the time of Mango’s launch, analysts said that though Mango would bring a price correction in the airline industry, the market was not big enough for three low-cost carriers and one carrier would suffer.
Jackie Walters, a transport economist from the University of Johannesburg, said the position of the other two airlines remained unchanged and Mango had in fact stimulated the market to a certain degree.
“Mango has not had a negative impact on 1time or kulula.com and the market definitely still has a lot of room for growth.”
South Africa’s three low-cost carriers, Mango, kulula.com and 1time, enjoy about 30 percent market share.
Despite the fact that low-cost airline tickets cost almost the same as a long-distance bus trip, only 7.5 percent South Africans fly.
Low-cost airlines are vying to increase those figures and South Africa is slowly joining the global community in offering options for cheaper flights.
Mango is riding on the tail of SAA, its parent company, and Walters believes that it has taken some of SAA’s full-fare paying passengers.
Kulula.com says it is not perturbed by Mango or its low ticket prices and the six-year-old airline remains the strongest player of the three low-cost airlines in the South African market.
Glenda Zvenyika, communications manager at Comair, the owners of kulula.com, said: “We were the first player in the local low-fare market and the first to revolutionise local air travel and have never compared ourselves to other players.”
Article from http://www.sundaytimes.co.za/
Battle of the low-cost airlines. At least there is one choice in car hire - www.southafrica-carhire.com
Labels: South Africa - Airlines
