flyafrica.com 2015 outlook: rapid expansion and new Namibia base as competition intensifies

New LCC group flyafrica.com is planning rapid expansion in 2015 as it launches its second affiliate in Namibia and continues to grow its original affiliate in Zimbabwe. The airline also aims to compete in the Zambia-South Africa market using fifth freedom rights and establish joint ventures in West Africa.

South Africa continues to be the target market as the group pursues a strategy of using affiliates in neighbouring countries to bring low fares to South Africa's underserved regional international market. Setting up in Namibia and Zimbabwe has proven to be a much easier path than attempting to secure an operating certificate and traffic rights in much larger South Africa.

Six of the seven routes flyAfrica.com plans to operate by the end of Mar-2015 are into South Africa, which will give the LCC about a 9% share of South Africa's short-haul international market. All six of these routes have historically been governed by very high fares and been dominated by South African Airways (SAA). The potential for market stimulation is therefore considerable.