Red tape binds low-cost competitors

There is limited choice for travellers seeking to use low-cost airlines, but it does not stem from a lack of trying by potential newcomers.

Skywise, the new airline proposed by 1time founders Glenn Orsmond, Rodney James and Michael Kaminski and former Sunair MD Johan Borstlap is yet to be given a licence, despite months of trying. Orsmond said despite providing documentation required by the Air Services Licensing Council, new documentation was called for each time their case was considered.

He felt this was owing to inefficiency, rather than an ulterior motive.

Pan-African operator Fastjet applied to take over 1time's licence late last year . CEO Ed Winter said the company aimed to fly from South Africa into the rest of Africa, as well as use local networks. He had hoped the deal would be concluded by Christmas. It was not.

The heads of Mango, SAA and Comair objected to Fastjet's proposed acquisition of 1time's licence on the basis that the airline would essentially be foreign owned, which would, according to Comair CEO Erik Venter, "weaken the position and protection of South African shareholders in African aviation" .

Guy Leitch, editor of SA Flyer, said the objections were essentially about preventing competition in the industry.

Mango CEO Nico Bezuidenhout said a "new market participant may negatively impact the current equilibrium between capacity and demand".

The council will meet this month to hear arguments for and against the transfer of 1time's licence to Fastjet. However, Transport Minister Ben Martins has the discretion to override any decision.

Leitch saidthe shareholding stipulation was an "archaic piece of legislation" designed to protect local airlines and was out of step with the Yamoussoukro Declaration.