New skies beckon elsewhere in Africa for low-cost rivals - Business Day

[PaperMan]

New skies beckon elsewhere in Africa for low-cost rivals - Business Day

INTENSE competition in the domestic aviation industry and the lure of higher growth rates elsewhere in Africa are prompting local carriers to seek out new markets.

Africa’s economic growth and development have been propelled in part by investor interest in its mineral and energy sectors, as demand from China and India grows. There is also tremendous growth in other sectors, including wholesale and retail, transport, telecommunications, and manufacturing.

T he need to get to and from these new markets is driving the development of aviation markets. There is also the need for local carriers to find new and profitable revenue streams.

"The local market is saturated and I think it is specifically in the low-cost segment where the bloodbath is," says Rodger Foster, CEO of SA Airlink, a regional feeder carrier which flies to 28 Southern African destinations under franchise to state-owned South African Airways (SAA).

Mango, SAA’s low-cost unit, nmouseout="hidedata();" onclick="CompanyLookup('37257', 'Company', '1Time');">1Time Holdings and


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