23 September 2008

South Africa - a Small market? Think Again!

The potential for Low Cost Carriers to reform a market remains one of the bright spots in these dark days. As if to prove it, Kulula in South Africa held a "garage sale" and in one day sold 55,000 tickets. That works out to about 350 Boeing 737s worth of tickets IN 18 HOURS.... that's about 1 Ticket a second.

So more power to Gidon and the lads for this one. If they can do it (remember this is a 62 YEAR OLD Company) then shame on anyone else who says they cannot.


1 comment:

Alexander said...

Dear Professor Sabena,
It is all about Marketing.
Kulula received 27 Mio ZAR for this Garage sale.
That is about 490 ZAR per ticket equals 60 USD .
As you calculated 157 seats on your Boeing 737 is is about 9600 USD a flight.
Enjoy and join Alitalia for that kind of business.
The trick is to sell it profitable, cheap can anybody else.
Look at the figure of South West per coupon and than you know, Kulula has to sell the same amount of tickets for 160- 180 USD to earn money for these 350 B737s.
Sorry I do not want to spoil the party, but how much does it cost to take a 737 out for an hour.
I have to admit I never thought, there would be a market like of that size in South Africa, but anyway is gas there any cheaper??
Have a great day