A price war has erupted between South Africa’s two low-fare airlines, with private air carrier kulula.com announcing on Tuesday that it will undercut the fares of South African Airways’ newly launched low-cost airline, Mango.
The airline said: ”kulula.com’s fares on its eight domestic routes will now start at only R168 all inclusive.”
However, it pointed out that only a handful of seats on each flight will be available at these rates.
”We want to send a clear message that after inventing low fares in South Africa five years ago, we will remain price leaders in the market even if we create a bit of a fruit salad in the process,” commented joint CEO Gidon Novick.
Flights on Mango between Johannesburg and Cape Town will cost about R200 until the end of December, it was announced in Johannesburg on Monday. The airline’s first flight will be on November 15.
”We are getting South Africans to travel,” said Mango’s newly appointed CEO, Nico Bezuidenhout.
On Tuesday, kulula.com complained that it pays about R250-million in taxes each year and that R100-million of taxpayers’ money will now be used to subsidise losses for the new airline for the first two years.
”We’re not sure why they need two years to become profitable — kulula was profitable from day one,” added Novick.
Mango is looking at creative ways for people to pay for tickets — including via retail clothing or food companies. Those details will be made known in a few weeks’ time.
The new airline is leasing two Boeing 737-800s from South African Airways at the moment. Its fleet will expand to four aircraft by December, when the carrier hopes to be operating 28 flights a day between Johannesburg and Cape Town. — I-Net Bridge, Sapa