SAX route cuts leave PLZ, ELS, DUR in the lurch

AGENTS are feeling the
effects of a drop in
capacity on domestic
routes after
South African Express (SAX)
announced the indefinite
suspension of its JNB-PLZ;
JNB-ELS and DUR-CPT
services, effective October
15. The decision comes amid
uncertainty about the airline’s
financial future, with SAX
unable to table its financial
results last month.
“SAX is an important airline
for Port Elizabeth,” says
Rachael Penaluna, business
manager at Sure Maritime
Travel. “The situation is
making it very difficult for Port
Elizabeth business travellers to
function effectively and within
budget.”
The decision means there
will not be enough capacity to
cater for the corporate market,
says Dinesh Naidoo, group
operations director at SWG.
He says SAA currently does
not operate on the Cape TownDurban
route, which means
corporates can only fly on the
LCCs or British Airways. “We
even have corporates flying
Durban-Johannesburg-Cape
Town as a result of the lack of
capacity.”
Meanwhile, SAX says it is
opening a number of new
routes in the near future, the
first of which is from Cape
Town to Mthatha, launching on
December 1.
The airline was unable
to table its annual report
by September 30 and its
difficulties with meeting its
obligations could mean that it
will be requesting yet another
state guarantee in addition to
the R1,1bn it already needs to
keep going.
But aviation industry players
say Treasury is unlikely to
extend the embattled airline
any additional guarantees.
Unlike SAA, which has
strategic importance for the
economy of South Africa, SAX
operates on routes that are
mostly overtraded and don’t
offer any strategic advantages
for the country. A merger with
SAA would be a possibility but
would again mean a burden on
the taxpayer.
“The truth is that a lot of
markets in South Africa are
currently over-capacitated. Any
gap created by SAX ceasing
operations would immediately
be closed by other carriers in
the market,” said one industry
player, who spoke to TNW on
condition of anonymity.