BEE low-cost carrier
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Join Date: Dec 2007
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BEE low-cost carrier
Been hearing vibes about fully BEE owned/run low-cost carrier to give 1T/Kulula/Mango a run for there money in the new year....anybody got some more details.....???
Join Date: Aug 2006
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Khaya gave Mango 12 months to be and sustain profitable operations. Clearly this is not happening, the board of directors stopped expansion plans (a/c & routes).
Maybe selling Mango to the nearest BEE company (read ANC-buddy).
E
Maybe selling Mango to the nearest BEE company (read ANC-buddy).
E
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Can't see that their is space for another LCC in SA. Mango struggling, Kulula hardly making a profit.
In the SA context, LCC is not a viable proposition. You need a big fleet of fuel efficient a/c and an extensive route network - more than the golden triangle!
Lots of capital required for a small yield - the BEE lot can do better than get involved with a LCC.
In the SA context, LCC is not a viable proposition. You need a big fleet of fuel efficient a/c and an extensive route network - more than the golden triangle!
Lots of capital required for a small yield - the BEE lot can do better than get involved with a LCC.
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Is this lower cost or Alternate ever going to work here in SA ( Comair may be the exception with BA backing ) ? Think back to Flitestar, Sunair (maybe) and how many others and now possibly Mango being lost. May be that I'm wrong but I'm sure a B.E.E. stands a better chance than most as in many bussinesses.
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In the SA context, LCC is not a viable proposition.
Just read the Ryan/Tiger threads to see how u run a LOW COST airline.
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low cost strategy
A business model using a low cost strategy is not as simple as low fares. Costs and expenses are kept low throughout the value chain, and with a sacrifice in spending comes a sacrifice in certain qualities, this is a given....can't have both. Otherwise one is really employing a mixed strategy business model, this is what seems to be happening at Mango and Kulula. In an attempt to compete with SAA, these two organisations have inadvertently sacrificed their low cost strategy, becoming even more expensive, diminishing returns.
Also the current economic climate in SA cannot support a fully flourished low cost strategy due to unfortunate baggage from the past. Maybe in twenty to thirty years from now an entrepreneuer will open the first and real LCC in SA.
Given the above reasons, and the cut-throat philosophy entrenched within a LC strategy, it seems very unlikely that any BEE group can succeed in operating a LCC in South Africa. However, other business models may be successful...
Also the current economic climate in SA cannot support a fully flourished low cost strategy due to unfortunate baggage from the past. Maybe in twenty to thirty years from now an entrepreneuer will open the first and real LCC in SA.
Given the above reasons, and the cut-throat philosophy entrenched within a LC strategy, it seems very unlikely that any BEE group can succeed in operating a LCC in South Africa. However, other business models may be successful...
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i-robot and TwinJock have hit the nail on the head - there is little more to say about it.
I was recently bored at a UK airport whilst waiting to meet delayed passengers prior to onward flight across the pond and counted 25 turnarounds between Ryanair and Easyjet - not one turnaround lasted more than exactly 20 minutes - quite a feat at a busy Airport - and wonder if we could get that right here?
I was recently bored at a UK airport whilst waiting to meet delayed passengers prior to onward flight across the pond and counted 25 turnarounds between Ryanair and Easyjet - not one turnaround lasted more than exactly 20 minutes - quite a feat at a busy Airport - and wonder if we could get that right here?
