FLY BLUE CRANE

In an interesting reference to the national bird of South Africa, Blue Crane Aviation have submitted an application for a Domestic Air Services Licence.

The outfit is a collection of ex-SAA management including the past-CEO Siza Mzimela, past-CCO Theunis Potgieter, and Jerome Simelane. Initial statements have emanated from Ogilvy PR, whose executive was a past PRO for SAA. For this reason they are probably bound to generate some significant publicity. We can also expect some interesting responses from government and SAA.


The licence application reportedly mentions Johannesburg-Cape Town as first route, but statements indicate a more regional ambition. We could be looking at an interesting race between Safair and Blue Crane, to see who will take-off first. We should also watch out for possible alliances, with parties such as fastjet and flyafrica.com. The management can likely capitalise on past international networking connections, so a tie-up with a large overseas player may also be a possibility.

Africa has good economic growth, and South African consumers will welcome more competition, so there are some favourable industry conditions. The key, in our opinion, will be to understand the partnerships which Blue Crane is able to forge, and how its relationship with government will pan out. This is no longer a game for small players.

Johannesburg
13 May 2014