In the present climate, we expect another fare increase before the end of the year. The industry is in its present crisis because we have not had increases since July. The price war started in November just about the time we were due for an increase. He agrees that unless fares increased significantly and the rand improved in value, one or two operators could drop out of the market. Everybody is hanging in there but only just.
Yields have to improve.
He said the increases would give Sun Air more breathing space in its negotiations with SAA and Virgin Atlantic over a commercial relationship. Borstlap also agrees that Sun Air, the market leader in onboard service, may have to review its policy of pampering passengers.