Share

Fly more, without govt backup

Johannesburg - South Africa must be the only country on Earth with three national airlines.

Comair, which operates the low-cost kulula.com airline, says this circumstance poses a threat to the airline industry.

"It's because of the intervention by the former Public Enterprises Minister, Alec Erwin, that we are today saddled with SA Express, SAA and Mango," says Comair joint chief executive Gidon Novick.

Novick explains that in difficult market conditions, such as those currently experienced, airlines struggle to make a living and the existence of state-controlled low-cost airlines such as Mango are unnecessary and a serious threat to the local industry.

"While other airlines (1time and kulula.com) are struggling, Mango can carry on ad infinitum - sponsored, of course, by the taxpayer."

Novick is seemingly elated that Erwin no longer holds the reins at the ministry.

While he has reason to smile about an oil price that has already fallen far from the highs it attained earlier this year, he says the weak rand/dollar exchange rate is concerning.

"The major countermeasure (in the difficult market environment) is to effect cost savings as far as possible. Lanseria airport and our operations there, for instance, have a hugely beneficial impact on the kulula.com cost base."

Comair is steaming ahead with plans for a Malawian airline.

British Airways (BA), a Comair shareholder, has indicated that it is more than prepared to support Comair's expansion plans for southern Africa. British Airways is a private company independent of the British government.

- Sake24

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.01
+1.1%
Rand - Pound
23.79
+0.7%
Rand - Euro
20.40
+0.8%
Rand - Aus dollar
12.40
+0.7%
Rand - Yen
0.12
+1.2%
Platinum
925.50
+1.5%
Palladium
989.50
-1.5%
Gold
2,331.85
+0.7%
Silver
27.41
+0.9%
Brent Crude
88.02
-0.5%
Top 40
68,437
-0.2%
All Share
74,329
-0.3%
Resource 10
62,119
+2.7%
Industrial 25
102,531
-1.5%
Financial 15
15,802
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders