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South African Airways pursues more growth in Africa including potential Ghana JV: SAA Part 3

Analysis

South African Airways (SAA) is planning to expand its regional international network further as the flag carrier reduces its focus on the domestic market and tries to turn around its highly unprofitable long-haul operation.

SAA is increasing capacity to several existing destinations in Africa and plans to launch more new regional international destinations by the end of 2014. SAA also still hopes to open a base in West Africa, which is a key component of the carrier's new business plan and will enable several destinations to be served which would not be viable non-stop from Johannesburg.

SAA is also looking at growing its budget brand Mango in the African market through potential joint ventures. But the group expects Mango's existing South African operation to focus mainly on the domestic market, which SAA views as becoming increasingly price conscious and therefore unable to support its mainline full-service product - with the exception of the two main trunk routes.

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