GT,
Nice to get that given to you on a plate. Someone said the Q400 could be start of bigger things to come - you mean like SAX taking over all SAA's domestic flights, or that roumered SAA low cost (please spare us) eek:
What exactly were SAX given that they dont already have? The routes they operate on require no special right to operate- BA/Kulula and the other carriers operate the same routes. SAX have always had the SA designator and FFP benefits so quite what was "given on a plate" is not clear. SAA under the franchise agreement it has with SAX is entitled to a portion of this "new" revenue so SAX is by no means getting a free ride.
I also fail to grasp your attitude to proposed SAA changes, rumoured or otherwise, to become a more cost effective and efficient airline with a product that speaks to the way the market is moving. Surely that in the interests of the travelling public and the country as a whole? or would you prefer that SAA just stay as it is- a situation we all agree is not satisfactory.
SAX is investing in their future- the only way they can keep the loco's off their routes is to offer more capacity, particularly at peak times, more frequently- whilst keeping your costs as low as possible- all at similar fares to the loco=the Q400 fulfils that brilliantly. Yes it is the start of bigger things for SAX.
The loco's on the other hand are running out of expansion room as there are not really any more domestic routes left that carry the critical population density necessary to maintain their services. If they try and stay on routes like BFN they will only dilute the profits made on CPT and DUR. In the end the market will dictate who wins and who looses. Jets don’t always win- even new ones.