Jun 30, 2011
Macdonald Holdings sells Velvet Sky to Excalibur AerospaceBack
Aviation|DURBAN|Engineering|Johannesburg|Aergo|Africa|Boeing|Excalibur|Macdonald Holdings|Velvet|Africa|OR Tambo International Airport|Air Travel|Airline|Service|Steel|Cecil Reddy|Dhevan Pillay|Gary Webb|Stephen Nthite|Boeing 737
© Reuse this
Velvet Sky would be picked up by a service provider to the aviation industry, Excalibur Aerospace, which would further expand the airline into Africa.
Macdonald Holdings chairperson Cecil Reddy said that aviation was not the company’s core offering, which was why it decided to sell its majority stake in Velvet. “Excalibur Aerospace will no doubt continue to grow the business through their service-oriented approach, expansion plans into Africa and commitment to providing affordable air travel to South African commuters,” he added.
Excalibur chairperson Stephen Nthite said that the company had an aggressive expansion model that would be supported by its strategic partnership with a low-cost Indian carrier, which was yet to be named.
Velvet Sky saw its inaugural flight take off from OR Tambo International Airport in Johannesburg to Durban on March 22, and had since been operating a Boeing 737, which it sourced from international aircraft leasing company Aergo.
Excalibur planned to introduce three additional aircraft to the Velvet Sky fleet within the next 12 months, with the first being introduced by mid-August.
Other competitors in the low-cost carrier business include 1time, which has an 18-aircraft fleet, Mango which has five aircraft and kulula.com with 24 planes.
The South African National Taxi Council also announced this week that it planned to enter the budget airline space.
Velvet Sky CEO Dhevan Pillay and COO Gary Webb would retain their positions at the company.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
Updated 1 hour 32 minutes ago While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Updated 1 hour 32 minutes ago Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
Updated 1 hour 32 minutes ago To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Updated 1 hour 32 minutes ago Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Updated 1 hour 32 minutes ago Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...