South Africa’s domestic carriers, Comair and Mango, are strongly opposed to fastjet’s application to acquire 1time as they believe it would be a step in the wrong direction for the local aviation sector.  
“All indications are that [fastjet] would be a weak airline and once again cause overcapacity, and ultimately result in negative publicity, further bad debts and disrepute for the industry,” states a memo prepared by Comair. 
While it seems that the carriers are opposed to any new entrant in the market, they claim to only be objecting to foreign ownership of a domestic carrier. The Air Services Licensing Act limits foreign ownership of a domestic airline to 25%. 1time is said to have applied to the Minister of Transport for a relaxation of the foreign shareholding limit in order for fastjet, a subsidiary of UK based investment company, Lonrho Plc, to acquire its entire shareholding.
Mango communication manager, Hein Kaiser, says: “Mango objects to flouting the law in terms of the waiver request vis-à-vis 75% domestic residence requirements of majority shareholders. Mango has no objections to any new market entrant beyond its central objection as noted. Competition is always welcome.” 
Comair CEO, Erik Venter, says: “As long as the routes in Africa are constrained by bilateral rights, we cannot have a situation where foreign airlines get privileges in South Africa that South African airlines cannot access on a reciprocal basis.” 
In its memo, Comair expresses that it is concerned that fastjet’s intention to acquire a share of 1time is based on its need to acquire international routes to South Africa that it would not be able to secure in the ordinary bilateral route rights and licence applications. 
“Granting the exemption to 1time would circumvent the need for fastjet to apply for routes into South Africa as a foreign operator, as it could secure its licences from the South African side by taking a substantial shareholding in a South African airline. This would weaken the position and protection of South African shareholders in African aviation,” says Comair.
Comair also doubts that fastjet has the funds to recapitalise 1time to the extent required to continue operating a sustainable domestic service, especially not to settle 1time’s debt. The memo further reads: “fastjet intends to continue operating the highly inefficient 1time aircraft, and on this basis we can see no way that it will be able to operate 1time any more efficiently than what was done in the past, when 1time incurred significant losses and debts. Even if fastjet intends to eventually replace the old 1time aircraft, the losses incurred by operating these aircraft for a few months will be crippling. The fuel burn per seat of an MD82 is 53% more than competitor aircraft in the market and 1time’s ceo specifically mentioned this as crippling to its profitability.”
Another concern raised by both carriers is overcapacity. According to Comair, overcapacity in the domestic aviation market in 2011 and 2012 had a severe impact on the profitability of the South African airlines, which was corrected by the withdrawal of 1time. It says: “We do not see the rationale of fastjet in wanting to enter into the South African market by recreating such overcapacity again.”
Kaiser agrees, saying any new carrier will impact the market with a reprise of early 2012 as a consequence. He says: “The market will be oversubscribed with capacity versus real demand.” Meanwhile 1time’s exit saw Mango reporting its best December holiday season ever, with revenue up by 60% compared with the same period in 2011. Ceo, Nico Bezuidenhout attributed this to “travellers opting for the airline’s value proposition, migrating from competing brands, as well as a slight impact felt due to the exit of a competitor.” 
Trade Union Solidarity called on the Minister of Transport to consider the fate of around 540 1time employees when making a decision on whether or not fastjet could purchase the airline. But Comair believes that while fastjet’s investment might save a few of the jobs at 1time in the short term, it will have negative long-term implications for South African airlines.
“Should fastjet wish to operate in the South African domestic market, it would be more logical for it to start a new airline and thereby avoid all of the complications associated with buying an airline in liquidation,” adds Comair. 
The matter will be assessed at the next Air Services Licensing Council meeting on February 13. Andries Ntjane, deputy director: licensing and permits at the Department of Transport, previously told Tourism Update that the Council had to ensure that South Africa’s interests were protected from outsider operators.