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Send  Share  RSS  Twitter  25 Nov 2009

AIR TRAVEL: Mango To Hold Back Fares


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Low cost airline Mango will not increase its fares due to an escalation in the fuel price this year. Crude prices are approaching US$ 80 a barrel. CEO Nico Bezuidenhout says that despite the anticipated fuel price increases due to higher oil prices, Mango would not increase its fares due to fuel costs this year.

It has been a challenging year for consumers,” says Bezuidenhout, “and as the oil price continues to climb, a fuel price increase is becoming highly likely before the festive season. Should this occur, Mango will absorb these increases and not up fares due to fuel costs over the holiday period this year.” He adds that the airline guarantees this until New Year’s Day (1 January 2010).

The barrel price of crude oil now sits at near double its lowest floor price late last year. While still well under the crisis range fuel prices reached recently, currency fluctuations and the global financial crisis negatively affected airfares. “Low cost airlines, however, are better placed to manage economic turbulence,” says Bezuidenhout.  Traditionally, low cost airlines are well placed to manage fuel price increases.

Beyond a business model that dictates operational efficiencies, new generation aircraft, such as the Boeing 737-800 aircraft Mango operates, allows for greater fuel efficiency, ultimately making air travel more affordable.”

December holiday bookings are looking good,” says Bezuidenhout, noting that he expects a solid festive season. “While we may still be in the midst of a recession, South Africans are still travelling. This year though it is evident that holidays are on average slightly shorter than last year,” and, he says, that he expects low cost airlines to perform well over the period.

About Mango:

-       Mango was launched in October 2006 as South Africa’s first globally benchmarked Low Cost Carrier. Mango’s first flight departed on November 15, 2006.

-       Mango operates four new generation Boeing 737-800 aircraft with a seat capacity of 186 Guests per flight.

-       Mango currently flies between Johannesburg and Durban, Johannesburg and Cape Town, Bloemfontein and Cape Town and Durban and Cape Town.

-       Mango presently tops all domestic airlines in terms of its on-time performance over the past 12 months.

-       Mango has led the industry with innovations that include a wide distribution strategy with bookings available online, through its call centre, Checkers, Shoprite and Checkers Hyper Money Market Counters, travel agents, My Market (corporate). Through its website, Mango also accepts the widest variety of payment methods, including most major credit cards, Edgars and Jet account cards, online debit transfers, FNB Cell Pay Point and Nedbank N-Pay transactions.

-       Mango Plus is a business travel product to deliver affordable business travel and includes Bid Air Premier Lounge access, 10kg additional check in luggage, same route flexibility sans penalties and R 40 on board refreshment vouchers. Mango Flex delivers same route flexibility but excludes the frills.


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