Overview - 1Time

South Africas 1Time brings competition to continents biggest domestic market

Launched in Feb-04 by local investors who recognised an opportunity in the period's unusually strong rand and low aircraft rental rates, 1Time started by serving South Africa's trunk route of Johannesburg-Cape Town, which it originally connected three times a day. It now operates six daily round-trips in that market.

The company, the name of which is derived from a popular local expression meaning "for real", quickly grew, with customer reaction to its low fares – 30% lower than when they entered the market – spurring it to add aircraft. It now has seven narrowbodies operating between six South African destinations.

The carrier briefly attempted to fly outside South Africa's borders as the limited market size and fiercely competitive nature of the domestic industry made expansion to international markets imperative. The service to Lusaka in neighbouring Zambia, however, was riddled with problems and the carrier pulled off and for the time being remains concentrated on the domestic market.

Outlook uncertain for Southern LCC

After a promising beginning and rapid growth, 1Time has run into problems. Although it and competitor kulula are credited with enhancing the air traveller population by 30%, the local demand base is extremely price sensitive and inherently low margin. This has made high oil prices and an older, fuel-inefficient fleet an especially damaging combination. Without the ability to profitably expand into regional markets, perhaps with a strategic partner, 1Time's road will continue to be rough.

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