According to a Corporate Traveller survey issued on Wednesday, flying to Durban and Cape Town from Johannesburg is more expensive than flying to New York‚ London‚ Singapore and Sydney when taking cost per kilometre into account.
Guy Leitch, Editor of SA Flyer says that the discrepancies are because the African market is inefficient.
Listen to the full conversation below:
This survey shows up the extreme dysfunctional nature of business into Africa, clearly it’s one of the reasons holding back African development that local goods are so expensive.— Guy Leitch, Editor of SA Flyer
There is obviously economy of scale in long distance routes having 350 to 400 people, you only have one take off, one crew and one landing, it is obviously a lot cheaper than to fill up an airliner for 19 people with several take offs and operate with two crews…— Guy Leitch, Editor of SA Flyer
This is the reason why we are seeing aviation so backward in Africa— Guy Leitch, Editor of SA Flyer
The airlines are finding it extremely profitable to operate in Africa because the market is incredibly inefficient— Guy Leitch, Editor of SA Flyer