Wednesday , January 27 2021

New South African airline to fly even as crisis grips market

Bloomberg

A new airline is preparing to start flights in South Africa next week, entering the industry at a time when carriers near and far are going bankrupt amid the worst crisis in aviation history.
Lift, owned by Johannesburg-based leasing company Global Airways, will operate three Airbus SE A320 jets and look to tap returning domestic demand after an almost five-month ban on inter-provincial travel to contain the Covid-19 pandemic. The airline is looking to take advantage of plunging startup costs due to an oversupply of idle planes and low oil prices, according to Co-Founder Gidon Novick.
“The opportunity is here now to go into the consumer airline space — especially given the current environment,” Novick said in a phone interview.
“The current cost structures are about 40% lower than what it would have cost to start an airline before the coronavirus.”
While European airlines struggle to stay afloat during the slower winter season and a resurgence of Covid-19 cases,
Lift will start flying at the
height of the South African summer and just as millions of
people travel to holiday resorts and family homes for the festive season.
Competition has also thinned slightly with the grounding of South African Airways, which has been in bankruptcy protection for a year.
Lift’s first flight is scheduled for Dec. 10, and the carrier
will link Johannesburg with Cape Town and George — a small coastal town in the middle of the so-called Garden Route, a popular area for holidaymakers.
South Africa’s domestic aviation industry was laid low by the pandemic, but is now slowly coming back to life.
State-owned Mango and closely held FlySafair are back up and running, while Comair Ltd came out of administration and resumed flights on
December 1.

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