The South African Airline Industry
Article by: marc
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The South African Airline industry has been growing in leaps and bounds since around 2001. A part of this growth can be attributed to the country coming out of apartheid and moving into democracy. This meant that not only more citizens were able to fly (due to work equality etc.), but that more foreign tourists flocked to the South African shores.
The one and only airline before this time was SAA or South African Airways. This is of course a public entity and thus government owned and tax payer funded. It had always had the monopoly in the market and therefore the service levels were low and prices were very high. So, owing to the good roads and love that SA citizens have for driving, most drove to their destinations. A drive from Johannesburg to Cape Town can take around 15hrs, so although long, it is not impossible to accomplish in a day.
Then the Low Cost Airlines started coming in. They based their business models on the successful UK airlines like Ryan Air and Easy Jet, as well as the US Airlines, South West. They offered no frills, flight only service. However, the service was friendly, efficient and cheap. This made them an instant hit and they started making inroads into the monopoly that was SAA.
Kulula was the original low-cost airline in SA. They have just recently taken a new step to display the fare and taxes separately, in a move to improve transparency. Unfortunately this will most likely confuse customers and they will be surprised when they see the actual price is substantially more than what they originally thought. I think that all prices should be displayed inclusive of all costs, and if the customer wants to see the breakdown there is a separate tab to do so. They have a very similar proposition to South West Airlines in the States, to provide affordable prices and be fun. Their advertising is young, funky and very cheeky, and their green planes and staff are instantly recognisable.
1Time Airlines was launched in 2004 by four SA entrepreneurs using the stronger Rand, and the business model that had served other low-cost airlines so well. It flies to Cape Town, Durban, Johannesburg, East London, George, and Port Elizabeth. They have had to fight to get into Kulula’s market, but have done a great job so far. They are very efficient and the on-time status is impeccable.
One of the newest of the low-cost airlines to start up in SA is Mango Airways. They are wholly-owned by SAA, and fly to Johannesburg, Bloemfontein, Durban and Cape Town. Initially after the launch many flights were delayed or cancelled. There has been much discussion about how they are artificially profitable as they are propped up by SAA. Although this may lead to some short term deals for customers, if too many go through Mango, then the other low cost airlines will eventually fail, and then Mango will just raise its prices.
There of course used to be an airline called Nationwide (which did local and international flights), but this went into administration 2 years ago.
As you can see, from only have one airline, which had the monopoly bolted down, South Africa now has a number of low cost airlines competing. This makes the market very fluid and prices change dramatically with each airline constantly trying to undercut each other. For such a small market (country size and number of people) there are plenty of choices for customers to make when deciding which airline to go with.
Search for and book flights flights on all the airlines including Mango Airlines, SAA, Kulula and 1time from Travelsupermarket.
About the Author
Marc the author is continually scouring the net to find the best flights and hotel deals in and around South Africa. Use travelsupermarket.co.za to book flights today
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