South African airline adding more flights
Airlink is expanding its fleet of planes from Brazil’s Embraer, as it looks to add more routes to its line-up.
Airlink has concluded its lease agreements with Azorra, formally accepting the first three of ten new E195-E2 jetliners produced by Embraer.
The lease agreement sees the US-based Azorra providing the newly-built aircraft to Airlink, which is boosting its current all-Embraer fleet.
The new aircraft will seat up to 136 passengers in a two-by-two cabin layout, providing additional capacity to better compete on high-density routes such as Johannesburg to Cape Town.
The E195-E2s additional range will also open new route opportunities for the airline to connect more destinations and markets across sub-Saharan Africa.
“The integration of the E195-E2s into Airlink’s fleet is an important milestone in the company’s 33-year history and will set it on a new trajectory,” said Airlink CEO, Mr de Villiers Engelbrecht.
“In addition to the operational and commercial flexibility the larger and more capable aircraft offer, they will also unlock additional efficiencies and cost savings from the commonalities with our existing E-Jets.”
“The new E2s and our current E-Jets have very similar flight decks, operating procedures and handling characteristics. This will also ensure a streamlined entry into service.”
The new aircraft are in the process of being ferried from Embraer’s facilities near São Paulo to Johannesburg via Cape Town.
They will enter service with Airlink in December to meet the peak summer holiday season.
Airlink is currently complying with the South African Civil Aviation Authority’s process to demonstrate its ability to operate and support the aircraft so that it can be added to the airline’s air operators certificate.
In the process, Airlink’s pilots, cabin crew, engineering and technical personnel are undergoing training on the E195-E2.
Airlink’s aircraft maintenance facility is also being equipped to support the aircraft and its engines.
Big court case for Airlink
The new planes arrive during a massive court case facing Airlink, which is accused of engaging in predatory and excessive pricing.
Last week, the Competition Tribunal resumed hearings over allegations that Airlink abused its dominance on the Johannesburg–Mthatha route between 2012 and 2016.
This was when new entrant Fly Blue Crane (FBC) briefly competed before exiting the market.
Aviation expert Guy Leitch said the case against Airlink could be a landmark moment for South Africa’s aviation industry.
“All airlines run special offers. FlySafair, which is now the dominant domestic carrier, is well known for its specials,” Leitch said.
“On the one hand, it could just be a way to sell seats and build up routes. On the other hand, it could be pricing designed to keep competitors out of the market. That’s the crux of this case.”
He noted that FBC, which former SAA CEO Sizakele Mzimela launched, attempted to operate on underserved regional routes, but could not due to claims over predatory pricing by Airlink.
“The complaint was that fares were pushed so low that Blue Crane couldn’t compete, and then once they exited, prices rose again. That’s the allegation the tribunal must assess,” said Leitch.
Leitch noted that fares on routes like Johannesburg–Mthatha are higher than on busier city pairs due to greater operating costs per customer.
Due to the Mthatha not being approved for larger planes, the cost of pilots, cabin staff and other necessities is spread over a fraction of the seats.
Leitch said the tribunal has a hard time determining if Airlink’s conduct amounted to predatory pricing or standard competitive market practice.
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