Tuesday, August 29, 2006

allAfrica.com: South Africa: SAA Launches Bid to Grab Passengers

SOUTH African Airways has lodged an application with the Air Service Licensing Council to begin a low-cost carrier operation.The airline says it will use four Boeing 737-800s, in service with SAA, on routes between Johannesburg, Cape Town, Durban and Bloemfontein.If SAA's application is granted, it is expected that the domestic air-travel market will be flooded with extra seats that would further jeopardise the already thin margins plaguing an overtraded industry.The applicant, Tulca (The Ultimate Low Cost Airline), of which SAA is the holding company, will operate as Mango.com, according to a variety of sources.The four SAA aircraft are reportedly being repainted and will sport an orange livery.The new low-cost operation is seen as a desperate bid by SAA to win back market share lost to no-frill carriers 1time and Kulula.com.According to its application, SAA expects its low-cost subsidiary to begin initial operations, transporting passengers and cargo between the four cities, by October 1.The launch was originally forecast for early November.

Read more at allafrica.com/stories/2...

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