, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
QUESTION 1
1. Case Study: Call for ‘affordable air travel for all’ – an article by 02 April 2025 - by
Christiaan Schultz
1.1. In reference to the case study on maintaining affordability amongst the low-cost airlines in
South Africa, and from what you have learnt from Learning Unit 2, and FlySafair’s overbooking
its flights in January 2025, which affected passengers, briefly discuss how this airline and its
counterparts could maintain affordability of flights for passengers by ensuring the following:
Increased labour productivity
To maintain affordability without resorting to overbooking, LCCs must increase labour productivity.
According to the study guide, “increased labour productivity […] involves keeping wages at a
market rate but encouraging employees to work harder” (TRL3703, Study Guide, p. 30). For
example, Southwest Airlines pays pilots well but they fly more hours per month and help with cabin
cleaning. In the South African context, FlySafair and its counterparts could implement a culture of
“all hands on deck” where pilots and crew assist with quick turnarounds. Higher productivity means
more flights per employee, lowering cost per seat. This would reduce pressure to overbook flights to
fill aircraft, directly addressing the chaos criticised by Chairperson Selamolela.
No frills
The “no frills” service model is central to LCC affordability. The study guide states that “no frills
service pertains to in-flight services as well as external services” and that LCCs offer a
“buy-on-board” service instead of complimentary meals, and they eliminate airline lounges and
frequent flyer programmes (TRL3703, Study Guide, p. 31). By strictly adhering to no frills, airlines
can keep costs low and fares affordable. The case study notes that some carriers “were benefiting
from regulatory advantages meant for budget airlines while charging passengers full-service airline
prices” (https://www.travelnews.co.za/person/christiaan-schultz, 2025). To prevent this, LCCs must
remain true to the no-frills model, passing operational savings directly to passengers, rather than
blurring the line between low-cost and full-service carriers.
Lowering ticket distribution costs
Lowering ticket distribution costs is essential for maintaining low fares. The study guide explains
that “selling tickets indirectly is approximately 20 times more expensive than selling them directly”
and that LCCs focus on selling e-tickets through their websites to reduce costs (TRL3703, Study
Guide, p. 30–31). FlySafair and other South African LCCs should encourage direct online bookings
and discourage reliance on Global Distribution Systems (GDS), which charge fees per ticket. By
lowering distribution costs, airlines can reduce the need for overbooking to compensate for thin
margins. The overbooking incident in January 2025 reflects a failure in yield management;
improving direct sales and reducing GDS dependency would stabilise revenue without
inconveniencing passengers.
QUESTION 1
1. Case Study: Call for ‘affordable air travel for all’ – an article by 02 April 2025 - by
Christiaan Schultz
1.1. In reference to the case study on maintaining affordability amongst the low-cost airlines in
South Africa, and from what you have learnt from Learning Unit 2, and FlySafair’s overbooking
its flights in January 2025, which affected passengers, briefly discuss how this airline and its
counterparts could maintain affordability of flights for passengers by ensuring the following:
Increased labour productivity
To maintain affordability without resorting to overbooking, LCCs must increase labour productivity.
According to the study guide, “increased labour productivity […] involves keeping wages at a
market rate but encouraging employees to work harder” (TRL3703, Study Guide, p. 30). For
example, Southwest Airlines pays pilots well but they fly more hours per month and help with cabin
cleaning. In the South African context, FlySafair and its counterparts could implement a culture of
“all hands on deck” where pilots and crew assist with quick turnarounds. Higher productivity means
more flights per employee, lowering cost per seat. This would reduce pressure to overbook flights to
fill aircraft, directly addressing the chaos criticised by Chairperson Selamolela.
No frills
The “no frills” service model is central to LCC affordability. The study guide states that “no frills
service pertains to in-flight services as well as external services” and that LCCs offer a
“buy-on-board” service instead of complimentary meals, and they eliminate airline lounges and
frequent flyer programmes (TRL3703, Study Guide, p. 31). By strictly adhering to no frills, airlines
can keep costs low and fares affordable. The case study notes that some carriers “were benefiting
from regulatory advantages meant for budget airlines while charging passengers full-service airline
prices” (https://www.travelnews.co.za/person/christiaan-schultz, 2025). To prevent this, LCCs must
remain true to the no-frills model, passing operational savings directly to passengers, rather than
blurring the line between low-cost and full-service carriers.
Lowering ticket distribution costs
Lowering ticket distribution costs is essential for maintaining low fares. The study guide explains
that “selling tickets indirectly is approximately 20 times more expensive than selling them directly”
and that LCCs focus on selling e-tickets through their websites to reduce costs (TRL3703, Study
Guide, p. 30–31). FlySafair and other South African LCCs should encourage direct online bookings
and discourage reliance on Global Distribution Systems (GDS), which charge fees per ticket. By
lowering distribution costs, airlines can reduce the need for overbooking to compensate for thin
margins. The overbooking incident in January 2025 reflects a failure in yield management;
improving direct sales and reducing GDS dependency would stabilise revenue without
inconveniencing passengers.
