Skywise will begin operations between Johannesburg and Cape Town in the second half of 2013 with the promise to cut the costs of flying domestically in South Africa by as much as 20%.
The statement comes on the back of getting its air service licence this week that now allows the airline to go for an air operator certificate from the SA Civil Aviation Authority. Many might argue that the South African carriers are akin to India with many airlines close to collapse and all trying to offer prices that leave no room for a margin. With a record of 11 airline failures in South Africa in less than 20 years things are not set to get any better as the team that started the latest round of low prices at 1time are the very same band behind Skywise.
1time is currently trying to avoid liquidation and Fastjet is trying to take on the schedule of the carrier. In January, South African Airways subsidiary Mango objected to Fastjet’s application to take over 1time’s air service licence, saying it would introduce capacity that would threaten the sector’s profitability, citing the failure of Velvet Sky and 1time.
Skywise will rely on the mantra that if you bring down the prices you will find the demand. We shall see.
Skywise continues gearing up, leaving Fastjet with a headache.
