New SA Low-Cost Airline

 New South African domestic airline FlyGoAir is set to launch, with Lanseria as its major hub to the north-west of Johannesburg. According to media reports, the airline is set to operate an "affordable premium service" on routes that are currently not well served by other airlines. It's due to start operating on 26 November, with its first route being the Lanseria - Kruger Mpumalanga International Airport route, with estimated airfares of R999-00 per person one way, inclusive of all taxes.
The airline plans to offer in-flight services such as meals, beverages and alcohol, and has also designed a unique loyalty reward programme, in which passengers qualify for a free flight after every six flights flown. According to CEO, Reg Sivsanker, “FlyGoAir is bold in wanting to take to the skies in tough times", but he believes in its competitive advantage and in the future, the airline hopes to expand its services by adding flights to the more popular destinations, which, he says, will further improve FlyGoAir’s competitive edge. FlyGoAir also plans to launch another two routes in January, to Polokwane and Pietermaritzburg respectively, with other routes said to be in the pipeline for next year, including flights from Lanseria to Bloemfontein and George, as well as a service from Kruger Mpumalanga to Cape Town. FlyGoAir will work with an online reservation system, which will take bookings from only two calendar months in advance. “Passengers can be assured; they will not have to suffer the same fate as those passengers who lost money on advance bookings on airlines that folded,” said Sivsanker.
 Although FlyGoAir has appealed to the public and the industry to be positive and “welcome the airline that is trying to make a difference by adding value and choice to air travel in South Africa”, industry players warn that it had better have deep pockets if it wants to survive in the current economic climate. “Anyone trying to launch an airline in the current trading environment is extremely rich or brave,” said Erik Venter, Comair CEO. “Fuel is at its highest price in history, as are airport charges.
 An added challenge for any operation from Lanseria is that fuel has to be brought in by road transport. Further to this, the market is in decline as a result of higher ticket prices needed to cover operating costs.” Blacky Komani, 1time CEO, adds the current state of the aviation industry in South Africa is very competitive, with most operators reporting losses due to overcapacity and high input costs.
 “I sincerely hope the new player has deep pockets to weather the aviation storms. The last thing the industry needs is another player going under.”