Deanw
13th Jun 2005, 12:04
Sunday Times (12 June 2005):
SAA puts super-jumbo on its shopping list
SA AIRWAYS says it needs to acquire the giant 550-seater Airbus A380 if it is to remain competitive on routes to Europe.
The carrier’s chief executive, Khaya Ngqula, said this week that the airline was in advanced discussions with manufacturer Airbus and leasing companies with a view to acquiring A380s.
The cost-efficient aircraft, which cost a staggering R1.4-billion apiece, have been ordered by competitors Lufthansa and Virgin Atlantic. The airlines expect to eventually use A380s on their routes between South Africa, Germany and London.
SAA will have to acquire the new planes if it is to retain market share against the two carriers, who have ordered 13 A380s between them,
“We will be ready to compete when it matters,” said Ngqula.
Following delivery delays announced by Airbus recently, Virgin now expects to bring its first A380 into service in 2008. Lufthansa will inaugurate the aircraft at the end of 2007.
Asked how SAA, emerging from the brink of financial ruin just a year ago, could afford the A380, Ngqula said cash-flow management had strengthened in recent months and by the time repayments were due, the airline would be in an even better position to cope with the financing.
Justifying the need for the aircraft, Ngqula said: “We are not blind to the effect the introduction of the A380 will have in the market — that is exactly why we are looking to acquire one.
“Our team is examining all the operational and commercial implications of this development and our strategic approach to it — we will not be going into this to lose.”
So far, because of its high cost, the aircraft has been ordered (154 at last count) by only the largest and most financially stable carriers in the world, but for sound reasons.
According to figures, the A380 reduces the cost per seat by around 15% against the B747-400 through a reduced fuel burn of about 12% and its higher capacity of around 35% per flight.
It would take two B747s to fly the same number of passengers to Europe as a single A380 flight.
Besides possible lower fares, passengers can also look forward to more room and better amenities, making for a more comfortable flight.
Lufthansa’s manager for Southern Africa, Gabriel Leupold, said: “The A380 will offer new and extended products and services for our passengers as well as growth potential for the airline.”
Virgin’s country manager, Mike Higgins, said the A380’s new technology would, besides being significantly more environmentally friendly, lower direct operating costs and allow an increase in the average number of passengers per flight, which would result in the better utilisation of slots at an already congested Heathrow Airport.
SAA puts super-jumbo on its shopping list
SA AIRWAYS says it needs to acquire the giant 550-seater Airbus A380 if it is to remain competitive on routes to Europe.
The carrier’s chief executive, Khaya Ngqula, said this week that the airline was in advanced discussions with manufacturer Airbus and leasing companies with a view to acquiring A380s.
The cost-efficient aircraft, which cost a staggering R1.4-billion apiece, have been ordered by competitors Lufthansa and Virgin Atlantic. The airlines expect to eventually use A380s on their routes between South Africa, Germany and London.
SAA will have to acquire the new planes if it is to retain market share against the two carriers, who have ordered 13 A380s between them,
“We will be ready to compete when it matters,” said Ngqula.
Following delivery delays announced by Airbus recently, Virgin now expects to bring its first A380 into service in 2008. Lufthansa will inaugurate the aircraft at the end of 2007.
Asked how SAA, emerging from the brink of financial ruin just a year ago, could afford the A380, Ngqula said cash-flow management had strengthened in recent months and by the time repayments were due, the airline would be in an even better position to cope with the financing.
Justifying the need for the aircraft, Ngqula said: “We are not blind to the effect the introduction of the A380 will have in the market — that is exactly why we are looking to acquire one.
“Our team is examining all the operational and commercial implications of this development and our strategic approach to it — we will not be going into this to lose.”
So far, because of its high cost, the aircraft has been ordered (154 at last count) by only the largest and most financially stable carriers in the world, but for sound reasons.
According to figures, the A380 reduces the cost per seat by around 15% against the B747-400 through a reduced fuel burn of about 12% and its higher capacity of around 35% per flight.
It would take two B747s to fly the same number of passengers to Europe as a single A380 flight.
Besides possible lower fares, passengers can also look forward to more room and better amenities, making for a more comfortable flight.
Lufthansa’s manager for Southern Africa, Gabriel Leupold, said: “The A380 will offer new and extended products and services for our passengers as well as growth potential for the airline.”
Virgin’s country manager, Mike Higgins, said the A380’s new technology would, besides being significantly more environmentally friendly, lower direct operating costs and allow an increase in the average number of passengers per flight, which would result in the better utilisation of slots at an already congested Heathrow Airport.