Mumbai: The Johannesburg-Mumbai route is not making profits for South African Airways, but it may not curtail services immediately, the Centre for Asia Pacific Aviation said on Monday.
The daily service has remained unprofitable for South Africa’s national carrier due to low passenger yields with flyers opting for comparatively cheaper connections, the new study suggests.
“There is a large Indian community in South Africa and India is a growing source market for South Africa’s tourism sector. But the market is low yielding and very price sensitive. Most passengers flying between South Africa and India do not mind transiting in East Africa or West Asia to save a couple of hundred dollars,” CAPA said in an analysis of SAA global operations on its website today.
04/11/13 Adith Charlie/Business Line
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The daily service has remained unprofitable for South Africa’s national carrier due to low passenger yields with flyers opting for comparatively cheaper connections, the new study suggests.
“There is a large Indian community in South Africa and India is a growing source market for South Africa’s tourism sector. But the market is low yielding and very price sensitive. Most passengers flying between South Africa and India do not mind transiting in East Africa or West Asia to save a couple of hundred dollars,” CAPA said in an analysis of SAA global operations on its website today.
04/11/13 Adith Charlie/Business Line
