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South Africa’s Mango, the often forgotten budget airline subsidiary, starts to pursue faster growth

Analysis

South African Airways' (SAA) low-cost subsidiary Mango plans to pursue further expansion as it attempts to leverage its position in the domestic market, which has strengthened significantly over the last year. The carrier over the last year has completed the largest expansion phase in its seven-year history, exploiting consolidation in the South African market to increase market share and return to profitability.

The collapse of two LCC competitors in 2012 left Mango and Comair subsidiary Kulula as the only players in South Africa's dynamic LCC sector. A new carrier is expected to eventually enter the market, leading to another possible phase of over-capacity and irrational competition. But Mango is now well positioned to fend off any new competition and gain more global recognition as a successful example of a full-service airline group budget subsidiary.

Mango is still a tiny carrier with a low global profile. Its counterparts in Asia have received significantly more attention for pioneering the LCC subsidiary strategy. But Mango's hybrid model has quietly succeeded, providing the building blocks for growth and a bright outlook.

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