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23-Oct-2014 2:09 PM

South Africa cannot sustain another new carrier: Mango CEO

Mango CEO Nico Bezuidenhout stated (21-Oct-2014) South Africa's domestic market cannot sustain the introduction of a new carrier. Mr Bezuidenhout said a start-up would be unlikely to succeed in the current market. Mr Bezuidenhout said, "The introduction of a second new airline in the domestic market will exhaust the sector. The market has contracted substantially since 2008 and, with margins under pressure again this year, it is a fact that the sector cannot sustain more capacity on obviously popular routes such as Johannesburg Cape Town and Johannesburg Durban... Today, given capital scarcity and increased competition, an investment proportionately greater as was required a couple of years ago may be necessary to sustain an airline well beyond its launch." As previously reported by CAPA, FlySafair commenced operations on 15-Oct-2014 and fastjet South Africa plans to commence operations in 2015. [more - original PR]

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