Mango's R10.9 million profit announced

Remarks by CEO Nico Bezuidenhout

Mango's continued focus on cost control, efficiency and guest service delivery saw the carrier attaining profitability against the background of a global aviation industry that realised losses in excess of USD$5 billion during the worst-ever year in aviation history.

Operating from the lowest cost-base in South African aviation, brought about by the company's leadership in dimensions such as asset utilisation, people productivity and innovation, Mango was well placed to respond to the unprecedented volatility in terms of fuel-prices. The company, un-hedged in terms of fuel exposure, benefited from operating a new-generation fuel-efficient fleet, whilst it further implemented various fuel-saving initiatives. Fuel cost savings, together with growth in ancillary revenue streams (derived from diverse sources ranging from travel insurance sales through to onboard advertising sales via MangoTV), allowed Mango to moderate the impact of escalating fuel cost on core ticket prices.

Awards won

Apart from maintaining Mango's cost-conscious organisational culture during the review period, Mango realised substantial service-delivery improvements. In this regard the company maintained the best on-time performance of any South African carrier, was awarded the Best Low Cost Carrier award in the 2008 ACSA Feather Awards at three of the four airports from which it operates and was voted top Low Cost Carrier in terms of service delivery in South Africa according to the 2008 Orange Service Index. For the second consecutive year, Mango was furthermore awarded the PRISM Public Relations award by the Public Relations Institute of South Africa (2008 PRISMS).

From an innovation standpoint Mango continued to give effect to its mandate of making air travel more accessible and the company now operates the broadest payment and distribution network in the South African industry, including world firsts such as ticket payment via retail store accounts (Edgars, Jet, CNA and Boardmans), online debit card payment and distribution via electronic procurement platforms, travel agents and the continent's largest retailer (Shoprite-Checkers). Mango furthermore implemented both web check-in and automated airport kiosk check-in, positively impacting operating costs and service delivery standards.

A solid performance in 2010 expected

Mango, having carried over four million South Africans and having realised market-share gains, is well positioned to deliver a solid performance in the 2010 financial year, despite the global aviation industry again forecasting deep losses. Through efficiency, innovation and global best practice Mango, as a public enterprise, will continue with its mandate to make air travel more affordable and accessible in a sustainably profitable manner, to the benefit of our guests, our shareholder and the South African economy at large.