Airport taxes, fierce pricing competition between operators and weak demand from cash-strapped consumers are a deadly cocktail, LISTED low-cost airline 1 Time is taking a close look at the number of flights it offers in SA’s golden triangle between Johannesburg, Durban and Cape Town, with a view to cutting flights that are not making any money. The loss-making carrier plans to put the capacity into more profitable routes and has its sights set on intra-regional travel, CEO Blacky Komani said last week. Comair , which operates flights for British Airways in the region and owns the low-cost carrier kulula.com, expects to report a loss this year. Mango, the low-cost airline owned by South African Airways, and 1Time expect the same. Comair said this week it was also cutting back on flight frequencies in SA to cut costs. Steep hikes in airport taxes in SA, fierce pricing competition between operators, and weak demand from cash-strapped consumers have combined to create a deadly cocktail for the sector. Local carriers are increasingly seeking out new markets in Africa that offer higher margins and double-digit growth rates. SAA has introduced three new destinations since the beginning of this year — Pointe Noire in the Republic of Congo, Bujumbura in Burundi and Kigali in Rwanda — all in the hope of boosting revenue and margins. Mr Komani said it was likely new destinations would be added to 1Time’s African portfolio in the next three to six months. smithn@bdfm.co.za, Source: BusinessDay
