It may have taken a little longer than originally hoped but the determined Skywise team have secured an Air Service Licence (ASL) and are now making final arrangements before they launch its flights between Cape Town and Johannesburg.
“With a valid ASL, we are now able to finalise our application to the Civil Aviation Authority for our Air Operators Certificate,” says Rodney James, Skywise ceo. He explains that the AOC is the final regulatory requirement before the airline can start selling tickets and operating.
Having witnessed the failure of domestic carriers, including Nationwide, Velvet Sky and 1time, the South African travel trade has mixed views on the viability of Skywise.
Jonathan Gerber, director of TAG, doesn’t think there is room for another LCC in the market. He says: “One only has to look at the list of failed airlines to see that this is a risky proposition. All I read about is how airlines globally are suffering, yet here we are about to launch a new carrier on an already over-serviced route. This puts all carriers under increased pressure.”
Garth Wolff, eTravel ceo, says: “Travellers will be sceptical as the track record of success is not great for LCCs in SA over the past 10 years, however there will always be those travellers who are driven 100% by price and if Skywise prices correctly, there will be those willing to give them a chance.”
He adds that, as economic conditions continue to improve, there will be greater demand for flights and that he has noticed that currently domestic flights are extremely full. “After its first year in operation, travellers will gain confidence, especially if the experience is good and the price is right.”
To gain support from the industry and travelling public, Garth says Skywise will need to have reliable aircraft, price correctly and deliver on time. “Word of mouth will then add to support for the airline over time,” he says.
Jonathan adds: “SA consumers have proved that they will fly on anything, regardless of consequences – recent Velvet Sky and 1time débâcles are examples of this behaviour.”
He says that while another airline is ultimately good for the consumer as prices will drop, an entirely different proposition is whether or not this is sustainable. “I am not sure of their business case but if it is cheaper, people will buy it. I would love to see how they intend to make a return on investment in a competitive space that is already, in my mind, overtraded.”
At the time of going to print, Skywise had yet to set a target launch date but Rodney says the carrier’s strategic and implementation plans are being updated. Skywise’s website is set to go live one month prior to the LCC’s inaugural flight.
For more on this story refer to TNW March 13.
