Mango snubs aviation crisis

Johannesburg - SA Airways' low cost airline Mango reported a R10.9m bottom line profit for the year ended March 2009, it said on Tuesday.

This followed the release, on Monday, of its parent company's results.

The publication of Mango's results came as a surprise as SAA CEO Chris Smyth told the media at a results presentation that SAA would not reveal Mango's results separately.

According to Mango, highlights for the period under review included revenue growth of 31% and a four percent growth in market share.

"Mango's continued focus on cost control, efficiency and guest service delivery saw the carrier attaining profitability against the background of a global aviation industry that realised losses in excess of $5bn during the worst-ever year in aviation history," Mango's CEO Nico Bezuidenhout said.

"Operating from the lowest cost-base in South African aviation, brought about by the company's leadership in dimensions such as asset utilisation, people productivity and innovation, Mango was well-placed to respond to the unprecedented volatility in terms of fuel-prices," he said.

He said Mango, un-hedged in terms of fuel exposure, benefited from operating a new-generation fuel efficient fleet while it further implemented various fuel-savings initiatives.

According to Bezuidenhout, fuel cost savings, together with growth in ancillary revenue streams (from diverse sources ranging from travel insurance sales through to on-board advertising sales via MangoTV), allowed Mango to moderate the impact of escalating fuel cost on core ticket prices.

"Apart from maintaining Mango's cost-conscious organisational culture during the review period, Mango realised substantial service delivery improvements," he said.

In this regard the airline had maintained the best on-time performance of any South African carrier, was awarded the Best Low Cost Carrier award in the 2008 Acsa Feather Awards at three of the four airports from which it operated and was voted top Low Cost Carrier in terms of service delivery in South Africa according to the 2008 Orange Service Index, Bezuidenhout said.

He said that from an innovation standpoint Mango continued to make air travel more accessible.

The company now operated the broadest payment and distribution network in the South African industry, including world-firsts such as ticket payment via retail store accounts (Edgars, Jet, CNA and Boardmans), online debit card payment and distribution via electronic procurement platforms, travel agents and the continent's largest retailer (Shoprite-Checkers).

Bezuidenhout said Mango had also implemented both web check-in and automated airport kiosk check-in, positively impacting operating costs and service delivery standards.

"Mango, having carried over four million South Africans and having realised market-share gains, is well positioned to deliver a solid performance in the 2010 financial year, despite the global aviation industry again forecasting deep losses," Bezuidenhout said.

In due course, Mango planned to increase its route network, he added.

- Sapa