The UK's two long-haul carriers are looking for alliances in the potentially lucrative South African domestic market in an attempt to counter the dominance created by South African Airways' linkup with Lufthansa.
British Airways and Virgin Atlantic are talking to two regional carriers aimed at securing feed and better coverage in South Africa.
Comair, South Africa's second largest domestic carrier, confirms it is talking to both BA and KLM with a view to forming a strategic alliance by the end of 1996. Managing director Pieter van Hoven says the airline needs an alliance to ensure continued growth. There is strong speculation that BA is the favoured suitor, but the UK carrier refuses to comment. Van Hoven also denies suggestions that plans for a new livery and the introduction of a business class will see it become the latest BA franchisee.
'We have outgrown our economy market niche where we started four years ago. Competition from Sun Air is forcing us to reposition ourselves. Because 80 per cent of domestic traffic is business related, we are going to have to fight fire with fire and upgrade our service,' says van Hoven.
Significantly, Comair's state-owned rival Sun Air is currently talking to Virgin Atlantic about signing a commercial agreement, confirms a senior Virgin source. The source denies, however, that Virgin is looking to take an equity stake in Sun Air, which the government has indicated is up for sale.
Domestic traffic could boost Virgin's planned three times weekly service to Johannes- burg, The launch has been delayed from July until October because of lack of capacity.
R Makings/S Guild
Source: Airline Business
