IATA: Budget airlines struggle continues

2013-05-31 08:23
Cape Town - Some low cost airlines will continue to close down as a result of escalating fuel prices, dwindling passenger numbers as well as razor thin profit margins, says International Air Transport Association (IATA) Director of Operations in Africa, Mike Higgin.

SABC reports Higgins said certain routes in South Africa are not sustainable for low cost airlines.

“I've been in South Africa for a long time we've seen a lot of LCC collapse and the yields just do not support the operations and operations cannot expand exponentially. So it's a matter of those two things and I won't go into things like how the companies are run, I'm not that sort of knowledgeable but the cost increases, the yields are going down and the passenger numbers.”

This statement was released as Comair awaits it High Court date to challenge the R5-billion government guarantee to South African Airways in February 2013.

"Comair's sole objective with this legal action is to attain a level playing field in the domestic aviation market to ensure that all airlines face the same risks and the same requirements to operate on sound commercial principles. By receiving government bailouts SAA avoids this commercial reality and this negatively impacts on all current and potential airline operators," said Comair CEO, Erik Venter.

A previous report incorrectly include attribution to former a IATA Chief Executive - News24 Travel apologies for the error, which has been amended.
Read more on:    cape town  |  travel international  |  flights

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

SHARE:

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside Travel

 
/News
 

Best ‘glamping' spots in the Western Cape

You can get the best of both worlds of camping and luxury living with ‘glamping'.

 
 

Outdoor

6 hiking routes you have to try
South African woman learns to surf at age 70
Pedal power to hit Kouga this May
Watch! Extreme Kiteboarding in pumping Cape Town conditions!

#FindYourEscape with Traveller24

Your insider guide to exploring South Africa and the world...
 
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.