Feature: LCCS & Butget Travel

Expect low fares - but for how long 

also announced its intention
to fly between Johannesburg
and Cape Town in May this
year.
Regionally, fastjet, with its
ultra-cheap fares is certainly
making its presence felt. Now
flying from Dar es Salaam
to Johannesburg, Lusaka,
Harare and Entebbe, and in
the process of establishing
a Kenyan operation, it has
been named the cheapest
LCC in Africa and fifthcheapest
worldwide by the
flight comparison website,
WhichAirline.com.
A second regional LCC
entrant is flyafrica.com,
which commenced services
between Victoria Falls,
Zimbabwe and Johannesburg
on August 1, and will begin
services between Harare and
Johannesburg on November 1.
As these new airlines come
into the picture, the travel
trade and travelling public
can expect more competitive
domestic and regional
airfares. Taking into account
the price-sensitivity of the
South African market, both
LCCs and traditional carriers
could well react with reduced
fares of their own. But will it
be just a matter of time until
sustainability rears its head?
SAA-affiliated Mango is one
of the stalwarts on the South
African LCC scene. Head of
communications, Hein Kaiser,
says the introduction of
competitive domestic airlines
does have a positive effect for
consumers, but for a limited
period. Mango will continue to
offer a weekly ticket sale on
Tuesdays, but the possibility of
an all-out price war is unlikely.
With the negative growth in
passenger numbers in recent
years, additional capacity
could affect the delicate
equilibrium between supply
and demand.
Comair ceo, which also
operates LCC kulula.com,
Erik Venter, recently told
Business Day that FlySafair’s
launch did not indicate
significant changes in
the airline’s ticket prices,
other than ensuring some
competitive rates for a few
weeks. He said at a profit per
passenger of R51, the airline
could not sustain lower fares. 

Earn commission on flyafrica.com

SOUTH African air
routes will be a lot
busier if all the recent
potential entries to the LCC
market succeed in launching
operations.
After its competitors blocked
the start of operations a year
ago, FlySafair takes to the
skies on October 16 with
services between Cape Town
and Johannesburg, adding
routes from the Mother City
to Port Elizabeth and George
shortly thereafter. The airline’s
pricing model is based on a
base rate for a seat and two
pieces of carry-on luggage
weighing not more than 7kg.
Meals, checked luggage and
pre-booked seats cost more,
representing considerable
savings for the passenger.
Dave Andrew, FlySafair ceo,
has said that the new airline’s
announced fares are not
simply opening ploys and that
the low-cost model applied is
sustainable. The average fare
across all seats in aggregate
exceeds the cost of operating
the flight, he says.
Skywise, another new
venture planning to fly
between Johannesburg and
Cape Town, has yet to take off,
although ceo, Rodney James
told TNW’s sister publication,
Tourism Update, last month
that they were in the midst
of negotiations regarding
the airline’s structure. Its
Air Service Licence (ASL),
cancelled by the Department
of Transport due to the delay,
was reinstated after a court
order.
Fly Blue Crane, a subsidiary
of Blue Crane Aviation and
headed by former SAA and
SA Express ceo, Siza Mzimela,
FLYAFRICA.com has released
pointers to assist agents in
the booking process:
Agent incentive: To book
flights via the flyafrica.com
website, a positive account
balance or credit card is
necessary. Payments can
be deposited into an agency
account or through a card
payment gateway. As an
incentive, 5% will be added
by the airline to any funds
placed into the agency
account.
Name changes: Flyafrica
allows changes to be made
to the spelling of names
within 48 hours of creating
the booking. The airline will
process the change within
24 hours.
Group bookings: The group
travel policy has been
amended. Agents must
submit a request form on the
airline’s website under ‘Group
Bookings’ and a quote will
be emailed in return. Ten
or more passengers are
classified as a group.
For bookings 40 days or
more prior to departure date,
an email will be sent advising
flight and fare information.
To proceed, agents must
contact the airline’s call
centre within 48 hours of
the email’s sent date, and
provide a 33% non-refundable
deposit.
Thirty days prior to
departure, the airline requires
66% payment, while the full
balance must be received 15
days ahead. Five days before
departure, all passenger
names, dates of birth and
passport information are
required. At the same time,
baggage and seat bookings
can also be made. These are
charged separately and must
be paid for at this time.
If the group has to be
cancelled after full payment
has been made, 67% will be
transferred to a voucher for
future travel with flyafrica, or,
if paid from a travel agent
account, the amount will be
refunded to that account.
Group bookings less than six
days prior to departure will
not be accepted.