South Africa’s three low-cost carriers are faring well despite the economic downturn was the message from representatives of the LCCs at the Transport Forum in Johannesburg on Thursday.
“The downturn hasn’t hit us yet. All three (1time, kulula.com and Mango) of us are making money,” said 1time CEO, Glenn Orsmond.
Orsmond said: “We are focusing on delivering what we promise to.
“Employing the wrong people is the biggest liability. Our people know their job descriptions and get on with it. At the end of the day, the man in the street is looking for the best deal. The best deal and service are what count.”
CEO of kulula.com, Gidon Novick, said while all airlines were cutting costs, LCCs were not in the red yet.
“Our people on the ground are doing what they can to save costs.” He said their initiatives, including using minimum catering equipment and managing weight to bring down fuel costs, were saving the company R120 million a year. He added that using Lanseria had saved the company money in taxes.
“All these savings are passed onto the consumer in lower fares.”
Mango COO, Nic Vlok, said the key to all airlines’ survival in future was to contain costs.
“Generally I think we are all optimistic for the future. With the World Cup coming soon, we will all be able to match supply and demand. At the end of the day, if everyone in the market is making money, we are all happy.”
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