Santaco: Sky's the limit for the taxi airline

The SA National Taxi Council (Santaco), which unveiled its low-cost airline on Friday, aims to list on the JSE within a year of taking to the skies.

The council hopes to raise about R100-million from its members before it announces the date for its initial public offering.

Santaco president Jabulani Mthembu said the taxi group has spent about R5-million in developing the airline concept.

Although flights are due to take off by November, Santaco CEO Bongani Msimang said the airline will only be fully operational next year .

At present the planes are leased, but Msimang said the council is investigating the purchase of its own aircraft. He would not name potential suppliers.

Mthembu said he expects the operation to break even within two years. The airline hopes to transport about 15 million commuters a year - the taxi industry transports a similar number of passengers every day.

Santaco represents 95% of taxi operators in SA. The industry employs 283259 drivers, about 80000 rank marshals and some 100000 conductors. It also supports an estimated 150000 informal traders at taxi ranks.

The taxi organisation believes its airline business will not compete with other low-cost carriers such as kulula.com, Mango and 1time. Msimang said it will "develop a new market for the aviation industry".

The airline initially will focus on routes with high commuter numbers - calculated by the number of long-distance taxis that operate in these regions.

The cost of a one-way Santaco ticket from Johannesburg to Bisho will be about R800 - below the average R2000 price tag at present.

Currently taxi commuters spend about R600 on a single road trip between the two cities.

Commuters will be able to purchase airline tickets at a taxi rank, from where they will be shuttled to the airport.

The taxi association conceded that it needs to clean up its image as it will be closely monitored by the Civil Aviation Authority.

Santaco will partner with other airlines that will supply it with technical capacity, including air hostesses, pilots and technicians.

Guy Leitch, editor-in-chief of SA Flyer, said Santaco's venture will defy its critics. According to him, it is a "real broad-based black empowerment exercise" with 180000 cash-flush shareholders (taxi operators).

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