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MGO-2013-10 - TO ZANZIBAR
MGO-2015-09 - Annual Seat Growth.jpg
MGO-2015-09 - Mango Domestic Network.jpg
Formed and started operations in 2006. a k a Tulca Ltd. Low-cost carrier (LCC), domestic & regional, scheduled & charter, passenger & cargo, jet airplane services.
Domestic Department Terminal
Johannesburg International Airport
Johannesburg 1627, South Africa
SOUTH AFRICA (REPUBLIC OF SOUTH AFRICA) WAS ESTABLISHED IN 1910. THE OFFICIAL LANGUAGES ARE: AFRIKAANS, & ENGLISH. IT COVERS AN AREA OF 1.12 MILLION SQ KM. THE POPULATION IS 44 MILLION. THE CAPITAL CITY IS PRETORIA.
August 2006: South African Airways (SAA) is planning to launch a low cost carrier (LCC) airline by the end of the year (later to be named "Mango" (MGO)).
October 2006: 737-8BG (32353, ZS-SJG), South African Airways (SAA) wet-leased - see photo.
November 2006: South African Airways (SAA) has its own low-cost carrier (LCC) "Mango" (MGO) in a bid to win back domestic market share.
(MGO) will begin flights on November 15. (MGO) will initially operate a fleet of 4 737-800s, leased from (SAA). (MGO) is looking to lease up to 6 additional 737-800s over the next few years, said (MGO) Chief Executive Nico Bezuidenhout. He said (MGO) is “actively looking at 737s in the marketplace,” but added that 737-800s are “hard to come by.” “We may grow to 10 airplanes in 5 years,” Bezuidenhout said. “It all depends on how well we’re received by the market.”
He admitted that (MGO) is sub-leasing its 1st 4 737-800s from (SAA) at normal market rates and under normal commercial terms. The 737-800s, which are due to come off lease in 2012, will be maintained by (SAA) Technics.
(MGO) will use 2 airplanes to launch operations on November 15 on flights from Johannesburg's or Tambo international airport to Cape Town and Durban. A further 2 airplanes will follow for the start of December, when (MGO) begins Bloemfontein to Durban and Cape Town.
July 2007: South African Airways (SAA)'s restructuring program, which is aiming for revenue improvement/cost reduction of -ZAR2.7 billion/-$378 million by the end of 2008, is moving ahead rapidly, (CEO) Khaya Ngqula told "Business in Africa." He said losses in the 2nd half of its fiscal year ended March 31 were about -ZAR200 million, not as steep as some had projected and reduced from a loss of -ZAR652 million in the 1st fiscal semester. He added that (SAA) would require a further recapitalization in order to cover the "substantial" 1-off costs of the restructuring program. He said the management structure has been redesigned to ensure that executives are directly responsible for implementing the restructuring initiative. (SAA) plans to cut management staff by -30%. The report also revealed that low-cost subsidiary Mango (MGO), launched last November, has captured 10% of the domestic market.
November 2007: (IATA) Code: JE. (ICAO) Code: MNO.
Operates between Johannesburg and Cape Town, Durban, and Cape Town, Johannesburg and Durban, and Bloemfontein and Cape Town.
December 2009: Mango (MGO) has proved it is an example of a Low Cost Carrier (LCC) profiting during a downturn. (MGO) made money during the 1st 8 months of its fiscal year that ends in March 2010, according to "Business Day." It also earned >$1 million in its last fiscal year.
(MGO) operates 4 737-800s in the domestic South African market, where industry capacity is down about -8%. (MGO) still sees a few more growth opportunities at home, including Johannesburg's Lanseria airport, after Comair (CML)'s exclusivity arrangement expires there. But it also hopes to eventually expand into cross-border markets like Mauritius.
February 2010: The Competition Commission of South Africa (CCSA) said it has launched an investigation into collusion on fares and pricing strategies for flights during this summer's soccer World Cup.
The (CCSA) named British Airways (BAB) and its Comair (CML) subsidiary, along with South African Airways (SAA), Airlink, SA Express, 1Time (1TA) and Mango (MGO) as subjects of the inquiry.
The (CCSA) said the office of President, Jacob Zuma issued a November request asking it to look into World Cup soccer airfares. Last month, (SAA) applied for leniency from prosecution in exchange for full cooperation and provided the (CCSA) with "e-mail correspondence between the airlines in which there are indications that the airlines might adjust airfares ahead of the World Cup."
The (CCSA) said, "In particular, the e-mail suggests that since there is no indication as to which flights will represent peak demand flights, airlines have the option to either not provide any inventory for sale until such time, or price all inventory at peak time rates until such time as they have greater certainty." It added that the e-mail "suggests that airfares will have to be raised in order to cover various anticipated additional costs."
Commissioner, Shan Ramburuth said the body "is obliged to investigate all legitimate complaints" concerning anti-competitive conduct and that if it identifies wrongdoing it will refer to the case to the Competition Tribunal for a hearing. The World Cup tournament runs June 11 through July 11 in nine South African cities.
May 2012: Row 44 and Wireless G, in association with Mango (MGO) and Vodacom, has launched G-Connect in-flight Wi-Fi on Africa’s first broadband Internet-enabled flight. The service allowed Mango (MGO) passengers to use full Internet connectivity through their personal Wi-Fi enabled devices, including email, web browsing and Short Message Service (SMS) capabilities. The service will roll out to its entire fleet by the end of the year.
September 2012: Mango (MGO) could become the platform for expansion of South African Airways (SAA) in other African markets as part of a plan to set up joint ventures allowing operations outside of South Africa. (SAA) is currently reviewing options to launch West African operations from a regional base in Accra Kotoka airport (ACC) under the "Mango" brand. It also plans to transfer some flights from South Africa to destinations with a leisure focus such as Livingstone Maramba (LVI) and Mauritius Sir Seewoosagur Ramgoolam International (MRU) airports to Mango (MGO), which has a lower operating cost base but currently only operates on domestic routes in South Africa.
December 2012: Mango (MGO) took advantage of the recent demise of 1time Airline (1TA) on December 10, as it entered 2 new markets from Port Elizabeth (PLZ) and now offers 7x-weekly services to Johannesburg (JNB), as well as 6x-weekly departures to Cape Town (CPT). (MGO)’s (CEO) Nico Bezuidenhout, said: “The launch of flights to and from Nelson Mandela Bay marks the beginning of a new growth phase for Mango. We plan to add several new destinations, both domestic and regional, to its network over the next 24 months.” Competition on both routes comes from South African Airways (SAA) (respectively 34x- and 43x-weekly frequencies) and British Airways (BAB) (7x- and 34x-).
February 2013: Mango (MGO)’s (CEO) Nico Bezuidenhout is assigned as acting (CEO) of South African Airways (SAA).
Mango ((IATA) Code: JE, based at Johannesburg Oliver Reginald Tambo International (JNB)) is planning to launch weekly services from Johannesburg Oliver Reginald Tambo International (JNB) to Zanzibar (ZNZ), its 1st international destination, as early as next month after already operating some charter flights to the Tanzanian island destination in December. Mango (MGO) seems to be planning to offer a weekly 737-800 service on the route from February 26 and already has published schedules accordingly but has not yet started taking reservations.
August 2013: Since the demise of 1time (1TA) last November, the South African domestic market has become a virtual duopoly between 2 companies: South African Airways (SAA) and Comair (CML). (SAA) operates flights under its own name, as well as its own Low Cost Carrier (LCC) Mango (MGO), while Comair (CML) operates full-service flights on behalf of British Airways (BAB), while also having its own (LCC), kulula.com (KUL).
Passenger numbers at South Africa’s 3 busiest airports (in Johannesburg, Cape Town and Durban) have fallen by -1.8% to 15.43 million in the 1st 6 months of 2013. Much of this can be explained by the collapse last November of 1time (1TA), a local (LCC), that had been operating primarily in the domestic market since February 2004. On the plus side, international passenger numbers at the country’s major international gateway of Johannesburg’s OR Tambo International airport, have risen by +4.8% in the period January to June.
Analysis of the traffic mix at Johannesburg airport over the last decade reveals that total passenger numbers peaked in 2007 at 19.3 million. Since then domestic traffic at the airport has fallen by -13% from 11 million to 9.6 million, while international traffic has risen by +9% from 7.5 million to 8.2 million.
With 1time (1TA)’s disappearance from the domestic market, passengers now basically have a choice between South African Airways (SAA), British Airways (BAB) (operated by Comair (CML)), Mango (MGO) ((SAA)’s in-house (LCC)), and kulula.com (KUL) (Comair (CML)’s own (LCC)). In March, kulula.com (KUL) added East London to its Johannesburg network with double-daily flights, while Mango (MGO) added daily flights to Port Elizabeth last December, from both Cape Town and Johannesburg.
October 2013: Mango (MGO), the low-cost carrier (LCC) subsidiary of South African Airways (SAA), has launched flights between Johannesburg (JNB) and Zanzibar (ZNZ) in Tanzania. Flights operate 2x-weekly on Tuesdays and Saturdays, using (MGO)’s 737-800s. Zanzibar thus becomes (MGO)’s 1st international destination, and only the 7th airport in (MGO)’s previously all-domestic network. In November, (MGO) will celebrate its 7th anniversary with the addition of an 8th airport, George, to its network.
November 2013: mango (MGO), the low-cost carrier (LCC) of South African Airways (SAA), has started a new route between Johannesburg (JNB) and George (GRJ). Flights on the 1,030 km route will operate 3x-weekly (Mondays, Fridays and Sundays) using (MGO)’s sole 737-300 (it also has 8 737-800s), though the launch flight was operated using a 737-800. Competition is provided by Kulula.com (KUL) with 23x-weekly flights, and parent company (SAA), who provide 20x-weekly flights using a mix of CRJ 700s, CRJ 200s and Dash 8-Q400s operated by SA Express. The route was also operated by 1time (1TA) until (1TA)’s demise last November.
November 2014: South African Airways ((IATA) Code: SA, based at Johannesburg O R Tambo) (SAA) has been rocked by more board-room chaos with Mango ((IATA) Code: JE, based at Johannesburg O R Tambo) (MGO) (CEO) Nico Bezhuidenhout, having been appointed the carrier's (CEO) in the absence of Monwabisi Kalawe, who was suspended by (SAA) Chairwoman Dudu Myeni, this month.
South Africa's "Mail & Guardian" newspaper stated Myeni provided Minister of Public Enterprises Lynne Brown, with a list of reasons for suspending Kalawe but did not publicize them.
Brown's predecessor, Malusi Gigaba, appointed Kalawe in April 2013 following the suspension of Vuyisile Kona on allegations of "improper conduct." Kalawe's appointment raised eyebrows at the time, given that he was an industry outsider with no experience of the airline industry.
According to "BusinessDay," Kalawe has himself been accused of corruption by Myeni with claims she asked the Auditor-General to investigate claims the (CEO) had negotiated to buy a stake in insolvent Senegal Airlines ((IATA) Code: DN, based at Dakar) (SNG) without the board’s knowledge, and that customers were being charged for a bag-wrapping service they did not receive. Also at issue were fuel-procurement irregularities and Mr Kalawe’s apparent refusal to sign a performance agreement.
Kalawe's suspension is the latest upheaval to have affected (SAA)'s board following the resignation of six members in October.
737-8S3 (29248, ZS-SJA), Macquarie AirFinance leased.
February 2015: South African Airways (SAA) could transfer all domestic and short-haul operations to its low-cost carrier (LCC) Mango (MGO) subsidiary acting (SAA) (CEO) Nico Bezuidenhout has said.
Outlining progress made up to Day 60 of (SAA)'s 90 Day Action Plan, Bezuidenhout noted that (SAA) could turn its attention to the still-profitable regional sector, while switching out its loss-making domestic routes to Mango (MGO), whose break-even fare of ZAR900/USD77 for short haul flights, was roughly half that of (SAA) at ZAR1,700/USD146.
The "Business Times" newspaper reports that in (SAA)'s latest financial year, domestic operations generated +ZAR790 million/+USD68 million in operating profit against +ZAR760 million/+USD65 million for regional flights. However, regional flying proved far more profitable, as it accounted for half the capacity (60%) being dedicated to domestic flights.
The cash-strapped national carrier is facing increased competition on the domestic front from budget airlines such as Kulula Air (KUL) and FlySafair (SFA) with SkyWise ((IATA) Code: S8, based at Johannesburg O R Tambo) set to make its début early next month.
South Africa flyafrica (Johannesburg O R Tambo) and sister airlines Zimbabwe flyafrica (Harare International) and Namibia flyafrica (Windhoek International) will also become a threat on the regional front with (SAA)'s cash-cow routes to Zimbabwe, Zambia, Namibia, and Mozambique under threat.
(SAA) has already announced plans to terminate its loss-making Beijing Capital and Mumbai International long haul services later next month with plans to reconfigure its Washington Dulles route by using a stop-over in another, unidentified West African country instead of Dakar in Senegal.
Meanwhile, (SAA) has announced it will now proceed with a disciplinary hearing against its current (CEO) Monwabise Kalawe, suspended last year on allegations of serious misconduct. "In as far as this is an internal matter, it is not appropriate to divulge the details of the allegations against Mr Kalawe at this stage. Suffice to say that the allegations relate to serious misconduct relating, inter alia, to non-compliance with various critical policies and procedures, as well as legislation, including the Public Finance Management Act, (SAA)’s Supply Chain Management Policy, the Job Evaluation Policy, Recruitment & Selection Policy and the Delegation of Authority Policy, gross misrepresentation (to the Minister of Public Enterprises) and failure to act at all times in the best interests of (SAA)," (SAA) said.
In addition to its precarious financial state, (SAA) has also suffered from chronic leadership deficiencies with Kalawe its 4th (CEO) since 2009. Kalawe's predecessor, Vuyisile Kona, was fired in March 2013 for his irregular appointment of several consultants.
September 2015: News Item A-1: Low cost carrier (LCC) Mango (MGO) will launch 2x-daily, Lanseria - Durban services on October 15. This is a route that kulula.com (KUL) already serves with 36x-weekly flights. In addition, there will be frequency increases on several other routes; Johannesburg to Durban increases to 52 weekly flights, Cape Town to Durban to 42x-weekly flights, Johannesburg - Port Elizabeth to 25x-weekly flights, and Johannesburg - George to 7x-weekly flights.
See attached chart - "MGO-2015-09 - Annual Seat Growth."
According to parent, South African Airways (SAA)’s 2014 Annual Report, Mango (MGO) carried 2.2 million passengers in the 12 months ending 31 March 2014, compared with 7.1 million for (SAA) itself. This means that (MGO) accounts for almost 24% of all passengers flying with (SAA) Group airlines. Annual load factor for the airline has been in the low 80% LFs in both of the last 2 years. Again, according to the report, Mango (MGO)’s airplanes are utilized up to 3 block-hours per airplane per day more than that of the domestic market average.
See attached - "MGO-2015-09 - Mango Domestic Network."
At present, Mango (MGO) operates on 8 domestic airport pairs, as well as a 2x-weekly service from Johannesburg to Zanzibar off the East African coast. 5 of the 8 routes are served at least 2x-daily, with the Cape Town to Durban route being the only 1 on which (MGO) offers more weekly flights than any other airline.
News Item A-2: Mango (MGO) is looking beyond its home country for growth, as it outlines its plans to bring in 2 new airplanes.
December 2015: 737-85F (28828, ZS-SJC), ex-(N1786B), Macquarie AirFinance leased.
April 2015: 737-85F (28830, ZS-SJE), Macquarie AirFinance leased.
May 2015: 737-85F (28829, ZS-SJD), Macquarie AirFinance leased.
July 2016: "Africa’s First Biofuel Passenger Flights Take Off" by Mark Nensel, July 18, 2016.
Johannesburg-based South African Airways (SAA) and (SAA) subsidiary, low-cost carrier (LCC) Mango (MGO) flew Africa’s 1st passenger flights with sustainable aviation biofuel on July 15.
A combined 300 passengers were flown on separate (SAA) and Mango (MGO) flights from Johannesburg to Cape Town on Boeing 737-800s in a blend of 30% aviation biofuel. The biofuel is produced from a nicotine-free tobacco plant called Solaris created by the South African arm of Italian bio-engineering company Sunchem, processed by California-based biofuel refiner, AltAir Fuels and delivered by Dutch bio-jet-fuel supplier SkyNRG.
In 2013, Boeing (TBC) and (SAA) began their collaboration to produce sustainable aviation fuels. Project Solaris was launched in 2014 as an effort from SkyNRG, Sunchem SA, (SAA) and (TBC) to develop sustainable biojet fuel from the converted oil from the Solaris plant seed.
In 2015, Project Solaris earned the Roundtable on Sustainable Biomaterials (RSB) certification. The (RSB) certification provides a model to further expand the production of the Solaris crop in a sustainable way.
“Over the last two years Sunchem SA worked side by side with local farmers in Marble Hall, Limpopo [South Africa] to grow the Solaris crop and make today’s biofuel flight a success,” Sunchem SA (CEO), Hayo de Feijter said. “It shows that the patented Sunchem Solaris technology opens a new market for Southern Africa and beyond.”
“(SAA) is committed to a sustainable future and this flight highlights the steps we are taking to protect and preserve our environment while creating opportunities for the economic development of our people,” (SAA) Acting (CEO), Musa Zwane said.
Additionally on July 15, the partners launched a sustainability plan called the Southern Africa Sustainable Fuel Initiative (SASFI) to ensure a long-term domestic fuel supply for (SAA) and other regional fuel users.
Boeing (TBC) described the goal of the initiative is “to scale-up over the next several years to gain additional biofuel capacity. If successful, farmers will be able to tap into local and global demand for certified feedstock without adverse impact to food supplies, fresh water or land use.”
October 2016: News Item A-1: "Star Alliance (SAL) Connecting Partner Model Evolves as Juneyao Airlines (JYA) Replaces Mango (MGO) as 1st Member" by (CAPA) centreforaviation.com October 17, 2016.
Star Alliance (SAL)'s connecting partner model is evolving beyond a proposition for low cost airlines (LCC)s. In October 2016 (SAL) disclosed its intention to add Shanghai-based Juneyao Airlines (JYA). Although (JYA) is full service, the semantics of full service versus low cost (LCC) have proven irrelevant: the core concept of (SAL)'s connecting partner platform is to secure transfer options in key markets. The (SAL) benefits for a connecting partner are only realized when connecting on the same itinerary to a Star (SAL) member. Unlike the situation with full membership, (SAL) benefits are not offered on a connecting partner when the itinerary is only point-to-point.
(JYA) gives (SAL) a partner in China's financial hub and replaces (SAL)'s former Shanghai partner, Shanghai Airlines (SHA), which left when it merged with SkyTeam (STM)'s China Eastern Airlines (CEA). Juneyao Airlines (JYA) is the 2nd announced member after the South African Airways (SAA) (LCC) Mango (MGO), but (JYA) will be implemented 1st in (2Q) 2017. As Juneyao (JYA) grows and plans intercontinental 787 flights, (JYA) may transition to a full member.
The connecting platform was not in existence when (SAL) and (JYA) started discussions 3 years ago. The connecting partner platform can further evolve to incorporate the (LCC)s that are rapidly taking over the flying of some of Star (SAL)'s members (such as Lufthansa (DLH)'s Eurowings (EWG) (and thereby preserving some of (SAL)'s relevancy). All-new growth (such as adding an (LCC) in India) is still hoped for.
May 2017: Mango Airlines (MGO) is starting to consider the future shape of its fleet, as airplane leases approach an end.
Mango flies 10 Boeing 737-800s in a single-class, 186Y-seat configuration. These are deployed almost exclusively on domestic services, on a network of major South African cities, including Cape Town, Durban, Johannesburg and Port Elizabeth.
Its sole international sector is to the island of Zanzibar, off the east coast of Africa and the airline said it is unlikely to increase international service in the near future. Instead, expansion will be focused on increasing frequencies on existing routes.
(MGO)’s aircraft are all held on operating leases, which will start to run out from 2020. (MGO) said it has a certain amount of breathing space to look at the future shape of the fleet. It has no preference between buying newer 737-800s or switching to a new type.
As with low cost carriers (LCC)s in Europe, Mango (MGO) (a subsidiary of South African Airways (SAA) has steadily attracted more business passengers, partly, it said, because of an on-time performance level of well over >90%. The passenger mix is made up of roughly 40% business (C) travelers and 60% leisure.
South Africa’s sluggish economy has held back growth for the airline industry there in recent years and Mango (MGO) believes that 2017 will continue in the same vein, with acting (CEO) Nick Vlok detecting little immediate sign of improvement.
“For 2017, the outlook is really flat,” he said. “The government says growth will be <1%.
“Mango (MGO)’s focus in the short term will be to maintain and grow market share on the routes that we already operate and to drive cost control and operational efficiencies while ensuring continued commercial success. The market is not conducive to expansion and business prudence in volatile conditions is paramount,” he said. “The market remains oversubscribed in terms of available capacity; (MGO) took a strategic decision some months ago to disengage from unsustainable price sparring between other low-cost carriers and focus on our strengths, product and track record while remaining affordable and widening our distribution reach,” Vlok continued.
“The consequences of buying market share artificially with unsustainable fares have seen several airline casualties along the way. The South African consumer deserves airlines that offer value and affordability and, importantly, longevity,” he said.
December 2017: Lufthansa Technik (DLH) (LTK) will provide maintenance and overhaul support on (CFM56-7B) engines operated by Mango Airlines (MGO), the low cost carrier (LCC) subsidiary of South African Airways (SAA).
The agreement runs until 2022 and will see work carried out by (DLH) (LTK) at its engine shops in Germany, with the main location at its Hamburg headquarters. It includes at least 19 overhaul events over the duration of the contract, with billing conducted on a power-by-the-hour basis.
(DLH) (LTK) has previously worked with (MGO)’s parent airline group, having carried out (SAA) (CFM56-7B) work for >15 years.
Aside from agreements with (SAA) and its South African Technical division, it also holds partnerships with Comair (CML) and Safair (SFA) in the country.
Robert Gaag, Lufthansa Technik’s VP Corporate Sales Europe, Middle East & Africa, said the new agreement is a boost for the company in the Africa region, estimated to have a 3% (MRO) market share from next year up to 2027 by Aviation Week's 2018 Fleet & MRO Forecast. “(DLH) (LTK) has a long lasting presence in this region and this agreement is a further proof that our services can be tailor-made to the different needs of this market,” he said.