Finance: Mango Increases Market Share During Challenging Times
Recent Gauteng Business News
CEO anticipates solid results after only two years in the skies
Low cost airline Mango reports that it has experienced a median 4% increase in market share during the past 3 months, with seasonal market share ranging between 10-20%, upping the airline’s slice of the overall aviation pie to an average of 15% on routes it operates. Load factors have remained in the upper Eighties while frequency increases late last year delivered well on business objectives.
CEO Nico Bezuidenhout says that despite the soaring fuel prices of 2008, a declining economy and a 5% drop in air travel, Mango has performed well. Low cost airlines are traditionally better equipped to handle economic challenges. “Our business case and two year profitability plan is delivering to South Africans,” he says, and anticipates that the airline will produce a positive set of results later this year. “During the past two years we have flown in excess of 3 million South Africans, contributed to market stimulation, growth and created hundreds of employment opportunities. All this while continuing to offer sustainably affordable air travel to all South Africans.”
Mango launched into a flat lining market, igniting sector stimulation in 2006. “Mango’s channel strategy, various payment options and product innovations like Mango Plus and Mango Flex have delivered accessibility to air travel never before seen in domestic aviation,” he says. Mango is a prime example of a public venture working – not only delivering affordability to South Africans but also operating as a sustainable, unsubsidized enterprise. “Mango shows that the effective redeployment of public assets has the potential to deliver positively to taxpayers.”
Business News Sector Tags: Finance|