There are still some fare bargains available, although flights are arriving with good passenger loads as tourism from overseas picks up and the strong rand is encouraging local people to visit the UK and continental Europe.
British Airways (BA), which has more seats on flights from this country than any other airline except SAA, is offering discounted fares to London, Ireland and 23 destinations in continental Europe and America, but this opportunity won’t last long.
The sale started this week, with the last tickets at these prices available on February 12, for outbound travel from now until June 21. Economy fares to London start from R6 360, including the hefty taxes and surcharges, and the more comfortable economy plus fare is R13 964, including taxes and surcharges. Flights to other parts of the UK are from R7 208 in economy and R14 876 in economy plus.
Fares to continental Europe start at R6 521 in economy and R13 339 in economy plus.
European destinations include France, Germany, the Netherlands, Switzerland, Belgium, Luxembourg, Barcelona, Copenhagen, Rome, Milan, Lisbon, Athens, Madrid and Stockholm.
The North American destinations included in the sale are New York, Boston, Washington, Toronto, Miami, Chicago, San Francisco, Los Angeles and Vancouver. Economy fares to East Coast destinations start at R8 714 and to the West Coast from R10 644. There are further discounts for infants and children.
Merger
BA will merge next month with Spanish national airline Iberia Airlines, which flies between Madrid and Johannesburg, to form the new International Airline Group (IAG). But, like Air France and KLM Royal Dutch Airlines, who were the first big European airlines to merge, each will retain its separate identity.
Willie Walsh, BA’s chief executive, will head IAG and Keith Williams, at present BA’s financial director, will take over as chief executive of the British airline. Williams was in Cape Town last week in support of a project to help mothers with HIV – one of several charities helped by the airline. It was not his first visit to this city and he has also stopped by Johannesburg, but he admitted to his frustration that, so far, he has not seen Durban and had no time to go there during this visit.
He said the deliberately bland name for IAG had been chosen because it is hoped that other airlines will join it, particularly some in India, China and other parts of Asia identified as growth areas for the industry.
Consolidation
The International Air Transport Association (IATA) has been urging the industry to consolidate to enable it to withstand the effects of natural disasters and other difficulties such as soaring oil prices and high taxation.
Legislation preventing ownership of airlines across national boundaries, denounced by IATA as out-dated, has so far limited consolidation. There are also, of course, worries that a big reduction in the number of competing airlines as a result of mergers or cross shareholdings could lead to lack of competition and much higher fares.
But, according to industry members, the fierce competition between the three international alliances would prevent this from happening. There are also vigilant competition authorities in some countries, including South Africa – as SAA has found to its cost – who watch out for evidence of collusion to push up prices.
Both BA and Iberia are members of the Oneworld Alliance and anti-trust legislagtion in the US has been relaxed to allow American Airlines to offer a joint network with BA and Iberia. As a result, Williams said, IAG will offer more routes and lower fares through reduced costs.
Some local travel agents commented that, although the formation of IAG would have a big impact in Europe and North America, it would have less effect in South Africa because, although BA is extremely strong in our market, Iberia has had little impact. But this could change as a result of increased trade and co-operation between this country and South America. Iberia has a strong, and growing, route network there.
Departure tax
Williams said that BA had pressed for the high departure tax on travel from the UK to be removed because it was damaging the British tourism industry The tax, which has just been raised and increases with the distance travelled, and is higher for people in first class and business class than for those in economy, was originally introduced ostensibly to help the environment but is not ring-fenced for this and is added to the total income from taxation. However, he said the belief that it was imposed on travellers in transit at Heathrow was mistaken. It was not paid by people merely catching connecting flights to other countries without leaving the airport.
Meanwhile German airline Berlin Air, which flies between Cape Town and Munich in the summer months, is preparing to join the One World alliance.
And Saudi Arabia’s national airline is preparing to join the SkyTeam Alliance, led by Air France and KLM.
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