Critics Say That's One State-Owned Airline Too Many

Representatives with South African Airways said this week the carrier is on track to launch a low-cost airline, over objections from those who say the country doesn't really need a third state-owned airline.

In particular, current discount carriers kulula.com and 1time say the market is already full... and have asked the Civil Aviation Authority to take steps to insure SAA doesn't use the new carrier to drive its competitors out of business.

In the meantime, SAA presses on... announcing plans to hire a new CEO and management team, with many speculating the current CEO of low-cost carrier Civair, Andy Cluver, is in the lead for the top post.

Representatives with SAA say they're only answering the needs of the domestic travel market, which has grown by 30 percent in the past five years. Critics say no matter what South Africa Airways may claim, however, there's no way the new airline will compete fairly... as the taxpayers are paying for it.

SAA plans to begin flights with its as-yet-unnamed subsidiary by the end of the year.

FMI: www.flysaa.com