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Low-cost airlines react to SAA, Mango 'collusion' allegations

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Cape Town - Allegations that South African Airways (SAA) has assisted its low-cost subsidiary Mango by subleasing aircraft at a significantly discounted cost are concerning, Elmar Conradie, CEO of Safair which owns low-cost airline FlySafair, told Fin24 on Monday.

This was after SAA seems to inadvertently have revealed in a statement that it has enabled Mango to offer discounted flights through subleasing aircraft at discounted rates.

"Airline lease agreements can include not only the use of an aircraft, but also certain aspects of the maintenance of that aircraft. This can represent a very significant portion of an airline’s cost structure. Any airline operating with a significant reduction of those costs, would be at a competitive advantage," explained Conradie.

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