HILKA BIRNS / CAPE TOWN
Comair, British Airways' South African franchise carrier, has launched a discount domestic carrier, Kulula.com. The no-frills airline is operating initially between Cape Town and Johannesburg using a Boeing 727-200.
Bert van der Linden, Comair's commercial director, says the new carrier is aimed at passengers who until now could not afford to fly and have previously used ground transport. Comair already operates on the route.
Van der Linden is unconcerned about a domestic market that is levelling off due to difficult economic conditions.
"If anything, pressure on people's pockets will provide us with a more sustainable market," says van der Linden, who adds that the airline will need to maintain 65% load factors to make money and has achieved more than 80% since its 1 August launch. "We're growing the market while reducing our operational costs."
In line with practice among other low cost operators in Europe and the USA, Kulula does not offer in-flight service, food, business class, pre-seating, frequent flyer programme, flight changes or refunds for cancellations. Most bookings are taken directly or through the internet, and agents earn only R25 ($3) per booking.
The airline is initially operating three return flights daily on weekdays, one round trip on Saturdays and two on Sundays.
About 60% of seats are sold at the lowest fare of R400 single, with the highest fares double that amount. All prices exclude tax and airport levies.
The owner of rival South African discount airline Intensive Air, Dr Kobus Louw, predicts Kulula will hurt Comair by taking passengers away from its own high-yield BA business class brand. Leisure carrier Intensive Air now plans to tackle the business market itself with increased services between Cape Town and Johannesburg and new flights to Richard's Bay, Margate (KwaZulu-Natal), George and Port Elizabeth (Eastern Cape).
The airline is acquiring two additional Fokker F28s from SAS and six ex-Horizon F28s from CIT.
South African Airways has retaliated against Kulula by dropping some fares on certain flights to R2 below Kulula's, although there are many conditions attached.
Source: Flight International
