VIEWS
TRAVEL: Budget Airline Profits from Bumper Festive Season
Recent Gauteng Business News
Low
cost airline
Mango reported today that the airline achieved load factors averaging
96% over
the December 2009 holiday period and it also reported a 3%
increase in
traveller numbers during the 2009 calendar year versus 2008 numbers. In
addition, the airline says that it’s experienced a surge in travel
interest since the World Cup Cape Town draw early December last year.
An
upbeat Nico
Bezuidenhout, Mango CEO, says that the airline’s festive season
figures,
coupled with the annual growth in numbers, is a consequence of both
travellers
trading down to low cost air travel and, ultimately, the continued
growth in
the number of South Africans that opt for air transport.
“I believe
that
the affordability of air travel caused by healthy market competition
continues
to stimulate the market, despite the recession.” He says that the
increased
pricing pressure airlines experienced as a consequence of the slowed
economy
contributed to this upward movement in the low cost sector.
“Airlines
are
under great pressure to maintain affordable pricing in a declining
market
with conditions increasing the competitive nature of the sector.
Aggressive
pricing has seen airline average fares decline somewhat, but, in our
case, it
has had the positive impact of increasing load factor medians.”
Bezuidenhout remains confident that the industry will assume sustained
growth
by the third quarter this year.
Following
the
World
Cup draw in Cape Town on December 4 last year, Mango also
experienced a
surge in enquiries and bookings for flights during the tournament. “The
majority thus far have been from tour groups,” says Bezuidenhout,
saying
that over and above scheduled bookings, a significant number of late
night
charters have been secured. “It seems travel between matches and home
bases apply as much to teams as it does to fans.” He expects the trend
to
continue.
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