South African listed airline group Comair estimates that South African Airways’s new low cost carrier Mango is costing taxpayers over R3-million a week.
Comair joint CEO Erik Venter based these calculations on an all inclusive cost of R60 000 per flight between Johannesburg and Cape Town.
”With their flights only 50% full, their revenue per flight won’t even cover their fuel and maintenance costs,” Venter said in a statement on Wednesday.
He went on to question how much SAA’s attempt to ”nationalise” the local aviation industry was ultimately going to cost South African taxpayers.
Eleven days ago, Comair requested an undertaking from SAA not to put any further capital into Mango following the R100-million that has already been sunk into the project. To date the undertaking has not been forthcoming, the statement said.
Even though Comair was able to run kulula.com profitably from day one, Mango has indicated that it expects a two-year grace period in which to turn a profit, he noted.
Comair runs British Airways in South Africa and kulula.com.
Mango took to the skies on November 15 with an initial fleet of four Boeing 737 800s — an aircraft favoured by global low-cost carrier for its reliability, safety record and fuel efficiency.
The airline was expecting to operate 28 flights a day once its full schedule was in place.
Initially the airline planned to fly the Johannesburg-Durban and Johannesburg-Cape Town routes, but will add the Durban-Bloemfontein and Bloemfontein-Cape Town routes in December. – I-Net Bridge