Virgin is in town and keen to foster partnerships with local companies, writes Madeleine Wackernagel
‘NOW that we can afford to fly here,” quipped Richard Branson, head of Virgin Atlantic, in an apparent side-swipe at the prevailing duopoly, “many more investments will follow.”
First off is a Virgin Megastore; a site has been earmarked and discussions with potential partners “one or two retail chains” are ongoing, but details will have to wait until Virgin makes its inaugural flight on October 3.
What is more definite is a link-up with a local airline: Sun Air is the frontrunner. But hopes that such a move will spearhead the government’s privatisation campaign are premature — a marketing agreement, possibly on the lines of the British Airways-Comair deal, is more feasible.
Sun Air is the obvious choice, says an industry analyst, because it most closely matches Virgin’s service ethos, and has an impressive growth record. And from Sun Air’s point of view, survival in the cut-throat airline world increasingly means hitching up to a global carrier. Virgin is keen to foster other partnerships in South Africa, reflecting its breadth of interests from Virgin Cola – to Virgin Direct, a financial services division. “The Virgin name is strong – internationally, which is an immediate attraction,” said Branson, “plus, we bring in the expertise and share it with local companies. In this way we hope to – contribute towards helping South Africa achieve its growth objectives, as well as encouraging other investors to come into this market.” –
Crime, he added, should not be a deterrent to potential investors: “We fly to plenty of high-crime cities. It’s never stopped us in the past and it won’t stop us now. But it is welcome news that the government is taking the crime issue seriously.”
Branson was also confident of winning the battle in the air: “We’ve never failed yet on a new route and this is a perfect scenario a comfortable duopoly that needs shaking up on price competitiveness and service. We intend to do just that.”
Industry analysts expressed some reservations, however, about tempting the lucrative business travel market away from established frequent flyer bonuses, but Branson was not deterred.
“Bookings for October are going very well, and uncharacteristically, business travellers have signed up well in advance. We’re looking forward to being a major force in this market.”