Kulula Founder on plans to launch a new domestic airline in SA

Founder of Kulula and former CEO of Comair, Gidon Novick, is looking to venture back into the aviation industry with plans to launch a new low-cost domestic airline in South Africa. This move comes at a time when the global aviation industry is facing unprecedented challenges, with South Africa's airline market particularly hard hit. Novick believes that despite the current turmoil in the industry, there is a unique opportunity to create a more efficient and affordable air travel option that could reinvigorate the country's economy and tourism sector. In a recent interview with CNBC Africa, Novick outlined his vision for the new airline, emphasizing the need for a fresh approach in the wake of the COVID-19 pandemic. 'The whole world has changed, and there's a sense of hopelessness among many businesses and countries. But in difficult situations, there's opportunity,' Novick said. He highlighted the need for efficiency in the airline industry, especially in a market where state-funded airlines have proven to be costly and inefficient. By starting from scratch, Novick aims to build a super-efficient platform that will ultimately translate to lower prices and increased affordability for consumers. 'The competitive playing field has been completely changed, and there's an opportunity to do something special,' Novick explained. When asked about the nature of the new airline, Novick made it clear that a low-cost model was the way forward for short-haul and domestic travel. He emphasized that in the current environment, where businesses and consumers are cost-conscious, any inefficiency in the industry would be difficult to sustain. Novick also highlighted the abundance of talent available in the industry, with experienced professionals looking for opportunities in the evolving aviation sector. Despite the challenges facing the industry, Novick remains optimistic about the prospects for the new airline. He acknowledged the uncertainty surrounding the industry's recovery but stressed the importance of adopting a slow and measured approach that aligns with market demand. 'The road to recovery is unknown, and we need to be mindful of the changes in business travel patterns. Our timing will be conservative, matching market demand as it evolves,' Novick said. In terms of funding, Novick revealed that the new airline would not require billions of dollars in capital to launch successfully. He expressed confidence in the support of local investors who believe in the potential of South Africa's tourism industry. 'We have incredible tourism products in the world, and with the right strategy, we can become a top tourist destination. All our investors are local, believing in the future of South Africa,' Novick said. The decision to focus on local investors reflects Novick's commitment to driving economic growth and development within the country. With a strategic and cautious approach, Novick aims to navigate the turbulent aviation landscape and carve out a niche for the new low-cost airline in South Africa.