Page 29 - World Airnews Magazine August 2020
P. 29

AIRLINES





























                                   A NEW SOUTH



                                   AFRICAN AIRLINE


                                             availability of all the key inputs into an airline,   think that’s the opportunity for now. And


                                             starting with aircraft facilities, and really   frankly in a market like South Africa, I’m not




                 ow might be literally the worst   high-quality people. Unfortunately, many   sure if it justifies new aircraft, certainly for

        Nti me to launch a new airline.      people are really keen to get back into the   some time to come.
         Well, several businesses think not, includ-  industry. So, I think when you put all of that   “We’re only really interested in the bigger
         ing Nolinor in Canada and Air Arabia in the   together there’s a desire to create something   narrowbodies and the 180 odd seater





         Middle East. In South Africa, an entity is   new, something fresh, something super-effi-  aircraft. [I’m] not getting into deep aircraft

                                             cient. And something that resonates with the
         looking at starting one up, and given the   market where the market is today … it’s a very   discussion right now, but the kind of a 321


         aviation brains behind the venture, it might   unique situation that we find ourselves in.”  size or [737]-900, that’s quite an interesting




                                                                                aircraft but again, new, would be too expen-
         turn out a wild success.             On the subject of where the initial routes   sive for us. But it lends itself well to that kind

           Gidon Novick, former Comair CEO and   of this new airline would be, Novik was clear.   of a route. So yeah so that’s where we are.”
         founder of Kulula.com, is a serial entrepre-  He said his start-up was looking at one   Will a low-cost airline work in South Africa?
         neur. He is also founder of Lucid Ventures,   route in particular.       Pre-COVID, South Africa would have

         and this week he gave an interview to


         AviaDev Africa about his latest enterprise:   “You can guess which route that is, that’s   welcomed more low-cost competition with
         a brand new low-cost airline based out of   the Cape Town - Joburg.”   open arms. But in a post-COVID world,
         South Africa that he hopes to launch before   Cape Town to Johannesburg is one of the   when airlines are struggling with longer

                                                                                turnaround times and higher costs due to
         the end of the year.                busiest airline routes in the world. In 2019,   the deeper cleaning being required, does
           Keeping tight-lipped on the name, Novick   it was the 11th busiest in the world, and   a low-cost airline really have a place in the

         has insisted that it’s just what South African   amassed South African Airways around (US)   modern South African landscape?
                                             $185m over the course of that year. With
         aviation needs, and was keen to share


         some juicy details about his future plans.  just what shape the national carrier will be   Novik thinks so.
                                             in, in the future Novik’s start-up could be
           “It’s the perfect opportunity for an airline   onto something.         He said, “The term ‘low-cost airlines’
         with the right business model,” he said.                               I think it’s an outdated term, because if
                                              He said, “We won’t be using new aircraft
           “For many people around the world, it’s   to start. We will be using used aircraft. I      you’re in the short haul market globally and
                                                                                you don’t have a low-cost basis, then you’re


         been a time to reflect. It’s been a time to                            not going to be around. I don’t know how


         reset … For many of us, we have been put un-                           you’re going to survive in whatever market
         der pressure with COVID-19 in many respects,                           you operate. So, I think that term is going

         and so efficiency is forefront in our minds.                           to wither away, and I think we have to be a


         And on the flip side, there’s the opportunity                          low-cost airline otherwise we don’t have a


         for creativity. This is the time where tradition-                      right to even play a part in the industry.”

         al, normal ways of thinking don’t necessarily
         solve the problems that we are faced with                                He said his airline will not be driven by



         and those two things have really got my mind                           utilization rates and will strive to keep fixed
         racing towards the opportunity that I see in                           costs low while minimizing debt. For once,
                                                                                it sounds like a start-up airline that has
         the airline industry,” he said.                                        more than just legs, but also some serious
           In many ways, Novik said that there                                  aviation game behind its model. Q



         couldn’t be a better time to start an airline.
         He view the challenges presented by COVID



         as opportunities for his start-up.                                     Article courtesy :https://simpleflying.com/


           “Obviously it’s opportunistic, in terms of the                       comair-ceo-new-airline/
                                                   World Airnews | August  2020
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