The first LCC is Kulula.Com, a low-cost airline based in South Africa operating domestic scheduled services. Code Data IATA Code: MN ICAO Code: CAW
Kulula was established in July 2001 and started operations in August 2001. It is a 100% owned subsidiary of Comair and was set up by them as a low-cost carrier. This is why in my opinion one of the main reasons why they are still around and doing so well.
1Time is the second, new in the market, doing well, was established round about beginning of 2004.
Nationwide is not a LCC. With them competing on the long haul flights with Virgin, why would Virgin want to keep them as partner in SA? Conflict of interest has never helped any company in the aviation industry.
he prefers to start things from scratch
Sir Richard and Virgin also definitely did not start CellC (mobile phone company in SA) nor did he start Vmobile (Ex Econet) in Nigeria, as two examples. Yet he is/was in aggressive talks with both these companies, why ..... to get a foot in the door and have access to an ever expanding market. Granted not aviation related yet, at least to a degree, I don’t think your argument of him only starting new companies hold any water.
As for going to bed with Link, with it's fleet of low cost Jetstream 41 aircraft and Embraer 135 jets, I don’t think they will be to far off the market to start a LCC and expand from there, should SAA vacate the routes in question.
See the vision:
Virgin seems to be on a huge drive to become one of the major player in world aviation, including Africa, an untapped resource. With huge expansion possibilities in the future into Africa with Airlink in the South, and with Virgin Nigeria, in the west, the financial hubs of Africa will be covered and they will have very little competition from anyone else in Africa. Right or wrong?
