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Low cost airlines circling SA

Johannesburg - With Nationwide, Interlink, Velvet Sky and 1time having bit the dust over the last few years, Comair is the only private operator of scheduled flights in South Africa, running both Kulula and British Airways branded flights.

This is likely to change before the end of the year, as there are four airlines chomping at the bit to take a slice of the high margins currently being earned on domestic South African flights:  FlySafair, Skywise, Fastjet and Pak Africa Aviation.
 
FlySafair was planning on launching OR Tambo to Cape Town flights before the end of this month, but have had a googly bowled to them in the form of a Comair high court application questioning whether they meet the 75% local ownership requirement. 

The airline is leasing B737-400s, the same type of aircraft which Comair is phasing out in favour of B737-800s. 

Iain Meaker, the Comair’s Commercial Distribution Executive, had said that “the aircraft (B737-800s) themselves represent an 18% fuel saving (over B737-400s)”. 

When questioned about the fuel efficiency of the 737-400s, Dave Andrew, the CEO of FlySafair, responded that “fuel is always a concern, but the benefit we have on the 400s are the much lower capital costs”.

FlySafair’s B737-400s are already in South Africa, are on their Air Operators Certificate and are ready to fly. Now there’s just the matter of that pesky high court application to deal with.

Skywise Airline hasn’t set an official date for launch, but the rumour is that it’ll soon announce an October launch date, and distinguish itself from Mango and Kulula’s bright colours with a  minimalist “less is more” theme, incorporating the colours grey, blue and white.

Skywise is initially going to be using two B737-300s to ferry its passengers about. Like FlySafair it plans to start flying on the OR Tambo to Cape Town route.  Later on, FlySafair has plans to commence flights to Durban, East London and PE.
 
Thought 1time was dead?  Pak Africa Aviation has put in an offer to purchase 1time Holdings for R15m; they say they have the support of the 1time Board and some 60% of shareholders, and are waiting for the JSE to come back with an answer (they expect to get this in October).  

They plan to allow 1time airline, a subsidiary of 1time Holdings, to go bankrupt; and to merely use the 1time brand to trade under in both South Africa as well as Zimbabwe.  

In the meantime they’re applying for an Air Operator Certificate in South Africa which is moving “more slow than expected”.

They plan to start 1time Zimbabwe where they own 49% of a JV with Central Air Transport Service (who own 51%). They have yet to decide on their flight routes, but one of the strategies they’re looking at is “to connect secondary airports and smaller cities and towns point to point”.

Pak Africa Aviation is funded by a consortium of high net worth individuals from Dubai and Pakistan, but says that it meets the 75% local ownership requirements.

To complete the foursome of new potential entrants into the South African airline industry, there’s Fastjet. 

Fastjet is commencing Johannesburg to Dar es Salaam flights on September 27 with 3 flights a week. Fastjet switched to launching the international flight routes after an aborted attempt to start Fastjet South Africa domestic flights earlier this year. 

Fastjet’s plan was to initially appoint Federal Air to operate the flights, which would be run by Fastjet Holdings, a company owned 25% by Fastjet PLC and 75% by a group of shareholders including Paul de Robillard and Edward Zuma. 

They planned to launch Johannesburg to Cape Town flights on July 4 2013, but backed out of the plan after questions were raised as to whether the South African shareholders were a front for Fastjet. 

Since pulling out of the previous attempt, Fastjet have repeatedly said that they still plan to start domestic operations in South Africa.

Fastjet’s plane of choice is the Airbus A319.

- Fin24

* Rob Baker is co-owner of South Africa Travel Online. Follow him on twitter on @southafricaTO.

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