Overview - kulula

Kulula – successfully applying the model at the tip of Africa

Founded in 2001, kulula is Africa's first LCC. A subsidiary of British Airways' longstanding South African franchise partner, Comair, it has transformed the domestic travel market.

kulula, which means "easy" or "simple" in Zulu, began operations on the countrys main route – Johannesburg-Cape Town – and has since grown into an eight-aircraft carrier, serving ten destinations, seven domestic and three regional.

The airline found the competitive landscape much easier when it was competing only with Nationwide and South African Airways inefficient domestic service, but even with 1Time fighting for the South African travel market, kulula has managed to grow and increase profits for parent Comair

With only two more aircraft, kulula has captured around 25% of the domestic market, compared to 1Time's 10%. SAA remains the largest player, with about 50%, but this figure is steadily shrinking and the carriers domestic operation is cash-negative.

The need to expand outside of the ultra-competitive South African market, spurred kulula into operating Johannesburg-Lusaka (Zambia). 1Time followed it into that market, but was unable to stick, while kulula expanded into Windhoek in Namibia, and Harare in Zimbabwe. kulula has since spoken of flying from Lusaka into the capitals of East Africa (its aircraft cannot reach Dar es Salaam from Johannesburg).

Outlook: More competition coming

The immediate outlook is also clouded by the impact of SAA's new LCC, Mango.

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