South Africa's non-taxpayer subsidised low-fare airline, kulula.com today announced that it will undercut the fares of the new SAA low cost airline. kulula.com's fares on its eight domestic routes will now start at only R168 all inclusive. Unlike the new fruity airline, kulula.com did make it clear that only a handful seats on each flight will be available at these rates. "We want to send a clear message that after inventing low fares in South Africa five years ago, we will remain price leaders in the market even if we create a bit of a fruit salad in the process," commented Joint CEO Gidon Novick.
At the same time kulula.com complained that it pays around R250M in taxes each year and that R100M of taxpayers' money would now be used to subsidise losses for the new airline for the first two years. "We're not sure why they need 2 years to become profitable – kulula was profitable from day one," added Novick. kulula.com once again reaffirmed its offer to assist the new airline if necessary. "We have had five years of experience and have a good idea on how to run a successful low-fare airline. We'd be happy to help the new airline with some tips on what we've learned over the years, " said Novick.
If the management of Mango are humble enough to accept kulula.com's offer to help they can contact kulula.com on 0861 kulula (585852).