Kulula eyes new planes

Johannesburg - Low-cost airline kulula.com will soon purchase six new aircraft.

"We are currently using 747-400s but hope to upgrade to the 737-800 models," company joint chief executive Erik Venter announced on Friday.

Venter reckons the newer models of aircraft are more cost-effective, which is critical for low-cost airline services.

"The biggest challenge is to get funding for the aircraft. Each one costs $40m."

According to Venter, Kulula prefers to own, rather than lease, its aircraft.

"For instance, to lease a single plane currently costs up to $380 000 a month.

"We own about 65% of all our aircraft and generally try to pay off new ones within five years. We find this considerably enhances profitability."

Gidon Novick, the airline's other chief executive, says even though the airline industry is currently experiencing tough times because of volatile oil prices and the economic crisis, Kulula is healthy.

"We are looking forward to next year for two particular reasons: the World Cup soccer tournament and the developments on the internet thanks to the Seacom cable.

"In 2008 Kulula generated turnover of R1.8bn through its website. And this at a time when internet usage in South Africa was limited and expensive."

"During the six weeks of the World Cup we expect to increase our capacity by up 50%."

The airline will shortly celebrate its eighth birthday and is handling up to 100 flights a day in South Africa.

Kulula is also busy negotiating with the Malawian government on the possibility of taking over that country's air services. - Sake24.com For more business news in Afrikaans, go to Sake24.com