From Business report
By Lee Rondganger
The battle for South Africa's skies has begun.
A new, no-frills airline - 1time - launched its low airfares between Johannesburg and Cape Town on Wednesday. This has prompted other airlines to drastically reduce their domestic prices.
The new entry into the already saturated market has signalled an all-out price war between the major carriers for the domestic market.
1time will begin operating the Johannesburg-Cape Town route from February 25, with a one-way flight costing a guaranteed R581.
'It will be the consumer who will suffer'
The cheapest flight will cost R371.
This week, kulula.com and Nationwide drastically reduced their prices in anticipation of 1time's launch.
People flying one-way between Johannesburg and Cape Town with kulula.com will pay R379, while Nationwide passengers will pay R370 for their limited low-price offers.
A one-way flight on SAA from Johannesburg to Cape Town could cost between R1 200 and R3 000.
1time will not immediately run a Johannesburg-Durban route, but the other airlines have also slashed these prices.
'Consumers generally find these advertised low fares are available in limited numbers'
kulula.com will charge R279 for a one-way ticket, Nationwide R270 and SAA between R600 and R2 000.
All of the prices quoted by the airlines include R80 airport tax.
According to 1time, their airfares are on an unlimited basis with no additional costs, no hidden conditions and no restrictions.
1time chief executive officer Glen Orsmond said that traditionally airlines had advertised their lowest available airfares with the normal disclaimers such as "from", "subject to availability" and "terms and conditions apply".
"Consumers generally find these advertised low fares are available in limited numbers, have restrictive conditions and contain additional costs."
"The advertised airfares (or less) will be offered on every seat, every flight, every day, irrespective of when you make your reservation," he said.
1time will operate a fleet of two 110-seater DC9 aircraft and two 150-seater MD82 aircraft.
Travellers can start online booking from Thursday at
www.1time.aero. Alternatively, they may book through its call centre on 0861345345.
Indirectly, the new competitor has made flying as affordable as surface travel.
People travelling one-way from Johannesburg to Cape Town on a Greyhound luxury bus pay R400, while Intercape passengers pay R395.
However, some within the airline industry are sceptical about whether the reduction of air prices can be sustained.
Paul Newman, a spokesperson for Amperzand Advertising and Communications, which does marketing for Nationwide, doubted whether the market could handle another no-frills airline.
"With the introduction of 1time, I do not think we are going to fill airliners (and run a profit) with the prices they are offering."
"It will be the consumer who will suffer in the long run because this price war is likely to damage the industry."
Newman said kulula.com's recent price slash was worrying because they would not be able to sustain the low prices.
However, kulula.com executive director Gidon Novick said the airline was excited about 1time's entry into the market.
"(The new entry) has energised us and has made us come up with a couple of new ideas."
"We have already upgraded our technology and with our new fleet up and running, we will save 30 percent of our costs."
SAA spokesperson Rich Mkhondo said prices for flights on the national carrier varied according to peak and off-peak seasons, including what day a person booked and at what time they wished to travel.
He said the busier the time, the more expensive the flights.
"Despite the entry of no-frills flights into the market, SAA will continue to compete and offer our customers special airfares with all the trappings that comes when they fly SAA, such as food and drinks.
"We offer more seats to all destinations in SA than any of our competitors."
Mkhondo said SAA had 250 return flights a week from Johannesburg to Cape Town and 180 return flights from Johannesburg to Durban.
One-way Airfares & Bus Fares Comparison: Johannesburg - Cape Town
HIGHEST LOWEST
1time R581 R371
kulula R1030 R379
Nationwide R2176 R370
SAA R3000 R1200
Greyhound R400
Intercape R395