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Budget airline comming soon to tz

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by MJIMPYA, Jun 27, 2012.


    MJIMPYA JF-Expert Member

    Jun 27, 2012
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    Ni wale owners wa easyjet, wanataka kuleta ndege hizi za bei rahisi hapa TZ. Ulaya unaweza toka Italy ukaenda Spain kwa $15, hawatoi chakula wala nini.
    Binafsi nawakaribisha sana ili usafiri wa ndege uwe kwa kila mtu. Waliozoea kutuibia (PW) sasa wafikilie upya.

    From CNN
    A new budget airline backed by easyJet founder Stelios Haji-Ioannou will soon take to the African skies, promising to bring low-cost flights to millions of people in the continent. Dubbed Fastjet, the no-frills carrier is expected to launch in three to four months, aiming to cash in on Africa's robust economic growth and a growing appetite for travel by its burgeoning middle class.

    The move comes after Haji-Ioannou's easyGroup teamed up earlier this month with pan-African conglomerate Lonrho to create the low-cost carrier. Lonhro, owner of budget airline Fly540, has agreed to sell its aviation business to investment firm Rubicon Diversified Investments, in which easyGroup will hold a 5 per cent stake.

    The new business will start operations using Lonrho existing network in Ghana, Kenya, Tanzania and Angola, before expanding to more markets in the future.

    "These four countries are currently experiencing great GDP growth, along with oil and gas discoveries and developments," says Ed Winter, chief executive of Fastjet.

    That price will absolutely democratize air travel, totally changing the way people are traveling in Africa.
    Ed Winter, Fastjet CEO

    "We believe that the time is absolutely right to change Fly540 into a much bigger airline based on the low-cost model which has been successful in every other part of the world," adds Winter, who is easyJet's former chief operating officer.

    The business, which will still be majority-owned by Lonrho, has set a target of carrying around 12 million passengers per year, "which creates an airline of roughly 40 aircraft," according to Richard Blakesley, Fastjet's finance director.

    The low-cost carrier expects to offer average fares of $70-80 before tax, which could fall to as much as $15-20 when booked early.
    "That price will absolutely democratize air travel, totally changing the way people are traveling in Africa," says Winter.
    Fastjet executives say they hope to tap Africa's rather underdeveloped aviation network, offering an affordable alternative in a transport environment largely dominated by difficult terrains, long bus journeys and poor infrastructure.

    Read more: Africa's daily commuting grind
    Haji-Ioannou, who set up easyJet in the mid-1990s, has described Africa as "the aviation industry's last frontier."
    "Past experience shows by halving fares, a successful low-cost carrier can encourage those people, who have never previously traveled by air, to fly. For Africa, with its densely populated cities separated by great distances -- this means a potential new market of millions," he said after the reverse takeover by Lonhro.

    In 2011, low-cost carriers occupied 9% of the African market, suggesting that there is a large potential for further development and growth, says aviation expert Linden Birns.

    He notes, however, that the big challenge for airlines is breaking into cross-border flights and launching intra-African routes.
    "At the moment access to markets on a transnational basis is governed by a set of bilateral air transport agreements," says Birns, founder of South Africa-based aviation consultancy Plane Talking.

    "Under those agreements, governments stipulate who's allowed to fly and how many flights. That really keeps a lid on things -- if you can break through those barriers and introduce competition then we should see some pretty rapid growth happening in the market."

    More people will be able to trade, more people will be able to do their tourism and it should be a good economic driver.
    Linden Birns, Plane Talking MD

    Aircraft manufacturer Airbus has forecast Africa traffic to expand by about 6.5% per annum between 2011-2020 and by 4.9% between 2021-2030, for a 20-year growth rate of 5.7%. This compares with a 4.8% increase in demand on a worldwide basis over the next 20 years.

    "It's no secret that Africa represents a massively untapped market," says Birns. "If we look at where growth is happening in the world, Africa is certainly up there."

    Birns says that as Africa's cities get more populated and as demand for business is growing, the expansion of the low-cost model should revolutionize the continent's air transport in the same way that it did in North America, Europe and now in Asia.

    "More people will be able to trade, more people will be able to do their tourism and it should be a good economic driver," he says
  2. K

    KVM JF-Expert Member

    Jun 27, 2012
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    These are very good news forTanzania. I am sure competition will bring down the fares and increase the popularity of air travel in Tanzania. I dont like to use buses to travel but sometimes i am forced to.

    I am not very much against PW. I think they have played an important role in revolutionishing air travel in Tanzania. They need a potent competitor, not Air Tanzania. I think PW is one of the most succesful airlines in Africa.
  3. k

    kijereshi JF-Expert Member

    Jun 27, 2012
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    Great news air travel for long sometimes specifically in Tanzania has been regarded as luxury whilst its not as it is fastest,reliable and safest to business people will agree with me why take more than 12 hours on a road on a bus to Mwz/Mbeya/Songea you name it whilst you could be airborne for less than an hour and do the necessary in your respective destination then go back to where you came from.

    I for one though in a way recommend PW for a great job but they haven't done enough,the demand for domestic travel is huge than what can be imagined take an instance of an airline which didn't operate for quiet long (community airline) the market was responding positively to their prices(ticket prices) and was a threat its competitors, I don't see why PW can not follow the lead by necessitating air travel to our community and not making it looks like a luxury those days are gone.

    On another note last time i heard fly540 was in crisis they had a delay on a flight to Mwz any lead on the goings?
  4. c

    chiggs New Member

    Jun 27, 2012
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    this is very good news.. current fares are killing us.
  5. K

    KVM JF-Expert Member

    Jun 28, 2012
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    The future of air travel for TZ looks bright especially if more competitors join the local market. The demand is still big. Currently PW is doing the killing. For the past four days I have been monitoring the number of PW planes which depart DSM daily and have found that they manage at least sixteen. This is awesome. I have also found that outside RSA, DSM and Nairobi are the busiest aiports in this region outstripping the likes of Harare, Entebbe, etc. Of course, Jomo Kenyatta is a very busy airport.
  6. k

    kijereshi JF-Expert Member

    Jun 28, 2012
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    I recall during those days of the so called community airline tickets were retailing for as low as Tshs 72,000/- for a one way ticket (stand to be corrected) and was quiet vivid the market was responding positively,and i assure you there was a drastic decline in a number of travelers who travel on buses from/to say Mwanza because the difference was so negligible as such time serving and reliability was considered to most travelers.

    However,on the same note this could act as a wake up call to airline operators in this case PW,Fly5420 and the defunct ATCL that recouping of their operational costs and higher margins are not all that should be looked at rather widening of customer base by taping even middle income earners to be their regular customers that would insure them a great sustainability rather than banking on certain group of income earners.

    I concur with you KVM that,we need more competitors to make the market even hotter (a cut throat competition) such that with best service you insure sustainability of your airline and not otherwise.
  7. F

    FJM JF-Expert Member

    Jun 28, 2012
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    Hii imekaa vizuri. Usafiri wa ndege ni ghali sana.