Redair dares to win air price war
Submitted by Paul Chambers on January 22nd, 2008 Tamlyn Stewart Published:Jan 22, 2008
SKY VISION: Andy Cluver, chief executive of Civair, says Redair will offer passengers the opportunity to design their own flights Picture: RUVAN BOSHOFF
A new low-cost airline, Redair, is threatening to shake up the South African aviation industry, but experts have sounded a note of caution to consumers.
The airline has been granted the rights to five weekly return flights between Cape Town, Durban, and London’s Stansted airport by the Air Licence Council, an international body.
Andy Cluver, Redair’s owner and the chief executive of charter airline Civair, said: “We believe there’s a gap in the market to bring low cost on long-haul. We believe a lot of people fly on price.”
Cluver said R40-million had been raised, through South Africa’s Industrial Development Corporation and private investors, and this would be more than enough to get Redair off the ground “sometime” this year.
Cluver said Redair was trying to get concessions on airport taxes at Stansted airport. And he’s shopping around for planes. “We’re looking for a very fuel-efficient plane. Either a Boeing 767-300ER or 777 or 747-400.”
Cluver said the estimated cost of a one-way Redair ticket from Cape Town to London Stansted, was just under R2000, without airport taxes. Airport taxes, he said, would add another R1000 to the total cost.
But aviation analyst Linden Birns said it was too early to estimate ticket prices.
“Until you have actually committed to an actual aeroplane it’s almost impossible to calculate the fare,” Birns said.
“There are all sorts of variables — the seating capacity of the aeroplane, which model of 747 they’ll be using, the type of engine, and the fluctuating price of jet fuel.”
But, Birns said, there was strong demand for flights on the SA-London route. “There’s definitely room for that sort of route, there’s enormous demand.”
Redair has also been granted licences to fly to Spain, out of Cape Town, Durban and Johannesburg.
The airline has also applied for licences to fly to Buenos Aires and to China.
Cluver said Redair originally applied for the Cape Town and Durban to London Stansted licences in January last year, and only received confirmation that they had been awarded the licences in December last year.
He said: “We will sell you a seat on the web, then you can add on, you can pre-order meals. We give you a choice. You can’t pre-order alcohol, you can buy it on board. ”
Extras include a business class lounge — but passengers will have to pay to use it.
Passengers will be permitted only one piece of luggage in the hold. The airline will charge a fee for extra baggage.
Cluver said: “You design your own flight. We’re expecting mass booking, so we can do it cheaper.
“It all adds up to bringing the costs down.”
Civair attempted to launch South Africa’s first international no-frills airline as long ago as 2004, but the plans collapsed when a partner withdrew.
Passengers in the UK and South Africa were reportedly left stranded, but Cluver insisted that Civair had reimbursed them.