Mango airline chief executive Nico Bezuidenhout says that while fuel can represent up to 40 percent of an airline’s operational cost, the low-cost carrier remains comfortable with current market conditions. Three years of global economic turbulence has seen crude reach levels of $147 a barrel in 2008, with the worldwide financial crisis and recession following in 2009 and 2010.
He says that while oil prices are nowhere near levels of 30 months ago, the airline observes movement in the market. Bezuidenhout expects the fuel price to range between $95 and $125 a barrel this year.
Bezuidenhout urges consumers to participate in blunting the impact of higher fuel prices: “A factor of fuel burn is aircraft weight. In 2008 Mango already removed non-essential, weighty items such as ovens from its aircraft. Simultaneously, packing lighter when travelling contributes significantly to fuel-saving. In partnership with our guests, Mango aims to mitigate the rising cost of fuel and maintain affordable fares.”
Due to the lower cost base that low-cost airlines enjoy, operational efficiencies provide a further buffer against rising overheads, adds Bezuidenhout.
“As demand increases, so will the energy’s price tag. Rising oil prices may necessitate a general fare increase but Mango’s business model, fuel-efficient Boeing 737-800 aircraft and operational efficiencies would contribute significantly to lessening much of the pinch on consumers’ pockets.” - Saturday Star