/ 27 January 2004

Airlines square up for price war

An air ticket price war became evident on Tuesday when South African Airways announced it had reduced its prices, matching those of Kulula.com.

The no-frills carrier, Kulula.com, which had been running its special since January 16 said it was not concerned by the SAA decision to reduce its fares.

”The response has been overwhelming, we have sold 70 000 seats and the limit is 100 000. It is possible that soon we will reach the limit,” Kulula.com executive director Gidon Novick said.

SAA has reduced its fares between Johannesburg to Cape Town and Johannesburg to Durban. It will cost R199 to Durban and R299 to Cape Town. The reduced prices matches those of Kulula.com.

SAA emphasised that it had cut its fares because it consistently matched all lowest fare levels offered by other airlines on all routes.

”When a major airline like SAA faces direct competition, you will find that we offer competitive if not identical fares,” SAA said in a statement on Tuesday.

With SAA, one-way fares between Cape Town and Johannesburg, Johannesburg and Durban, Cape Town and Durban, Johannesburg and Port Elizabeth, and Johannesburg and George were available on Tuesdays and Saturdays for bookings on SAA’s website, flysaa.com.

The return fares, available on specific flights, were R399 between Durban and Johannesburg, R593 between Johannesburg and Cape Town, Johannesburg and Port Elizabeth, Cape Town and Durban and Johannesburg and George.

Passengers would benefit only if they travel between January 24 and August 31.

Kulula’s special runs until all seats were sold out and passengers can book anytime, Novick said.

”We might continue with the special after we have sold out 100 000 seats,” said.

SAA said limited seats were available and all fare prices above were based on a return trip. The fare prices shown during the web booking process include all applicable taxes.

”Passengers should note SAA discounted fares available throughout the year vary depending on the timing of the booking.

”It means if a passenger books 21 days in advance, they will get a cheaper fare — subject to availability — compared to booking a day before or on the day of departure,” SAA said. – Sapa