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LCCs – the next chapter

09 Sep 2015
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THERE is a huge market in

Africa for low-cost airlines.

LCCs could be the future

of connecting countries in

Africa but carriers should

be introduced at the right

time, at the right price and

offer the right product, said

Air Uganda’s head of risk

management and control,

Aziz Rattansey.

A round table discussion

headed by Aziz revealed that,

in some countries, low cost

means low quality. “Although

LCCs should be competitive

in price compared with

legacy carriers, they should

still offer a level of quality.”

AirAsia Berhad gm for India,

Sri Lanka and Bangladesh,

Suresh Nair, said LCCs

in Africa were seen as

stepchildren because they

operated very old aircraft.

“LCCs are badly capitalised,”

he said. “I don’t see a

big player emerging in the

industry at the moment.”

He added that while kulula,

Mango, Skywise and FlySafair

contributed to South Africa’s

status as the largest

domestic air travel market

on the continent, the next

step was to go international.

“But it is difficult for LCCs

to operate outside of their

borders, because obtaining

traffic rights is a headache.”

Sudeep Ghai, managing

partner of Athena Aviation,

added: “Landing rights,

taxes and fees are major

considerations for LCCs

operating in Africa. Nigeria,

for example, has onerous

landing rights and high taxes,

making it almost impossible

to operate a low-cost model

in the region.”

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