Mystere IV A
January 30, 2003, 08:54 AM
South African Airways (SAA) is pondering the feasibility of turning its regional partner and prospective merger partner South African Express (SA Express) into a low-cost airline.
A spokesman for SAA says: "We are looking at all options, including making SA Express into a low-cost airline." However he stresses it is just one of several strategies and initiatives being considered by SAA and is still being evaluated.
The carrier has faced increasing low-fares competition in local markets since Comair launched its budget venture, Kulula, in 2001. The carrier operates flights between Johannesburg, Cape Town and Durban.
The evaluation of a possible budget role for SA Express comes as SAA hopes shortly to merge with the regional carrier. The two airlines are both currently owned by South African state holding company Transnet, and spent much of 2002 in talks over plans for SAA to take over the running of SA Express.
These talks initially stalled last summer over the regional carrier's outstanding liabilities - but talks continued over the second half of last year in a bid to complete a deal.
A spokesman for Transnet says that board approval has now been given for the merger, but its completion is now dependent on the country's Competition Commission.
"It makes more sense," the spokesman says of the move. "There is no reason [anymore] why one company should have two separate aviation businesses."
SA Express currently operates feeder flights for SAA using a mix of Bombardier Canadair Regional Jet CRJ-200s and de Havilland Dash 8 Q300s.
Fly High :windsock:
:pilot_2:
A spokesman for SAA says: "We are looking at all options, including making SA Express into a low-cost airline." However he stresses it is just one of several strategies and initiatives being considered by SAA and is still being evaluated.
The carrier has faced increasing low-fares competition in local markets since Comair launched its budget venture, Kulula, in 2001. The carrier operates flights between Johannesburg, Cape Town and Durban.
The evaluation of a possible budget role for SA Express comes as SAA hopes shortly to merge with the regional carrier. The two airlines are both currently owned by South African state holding company Transnet, and spent much of 2002 in talks over plans for SAA to take over the running of SA Express.
These talks initially stalled last summer over the regional carrier's outstanding liabilities - but talks continued over the second half of last year in a bid to complete a deal.
A spokesman for Transnet says that board approval has now been given for the merger, but its completion is now dependent on the country's Competition Commission.
"It makes more sense," the spokesman says of the move. "There is no reason [anymore] why one company should have two separate aviation businesses."
SA Express currently operates feeder flights for SAA using a mix of Bombardier Canadair Regional Jet CRJ-200s and de Havilland Dash 8 Q300s.
Fly High :windsock:
:pilot_2: