1time Airline describes itself as SA's "first real" domestic, low-fare airline.
Its apparent success is in stark contrast to the recent collapse of Nationwide, under severe pressure from fuel prices.
But, four years after commencing business as primarily a leisure-orientated airline, 1time is broadening its focus to target the corporate market.
WHAT IT MEANS
 It is now targeting the corporate sector
It has a lucrative maintenance business
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And the aviation company's staff are about to don new uniforms to reflect this shift.
"The change in uniform fits in with the airline's change in business strategy," says 1time holdings group CEO Glenn Orsmond.
"When we launched 1time, it was exclusively a leisure airline. Over the past two years, the focus has broadened to target the corporate market by moving it from high-cost, traditional airlines to low-fare airlines.
"About 40% of our market is now derived from business travellers. Corporate deals are offered to entice business away from traditional, high-cost airlines which are losing market share," Orsmond says.
The airline was started by four aviation entre-preneurs, who saw opportunity in a depressed post-September 11 2001 era.
Today, 1time is growing more than 30%/ year in a market that has been growing at 15% for the past six years.
Its secret, the owners say, lies in its ability to stay true to offering its no-frills service to a largely untapped market.
"There are certain fundamental business rules to starting a low-cost airline as opposed to a legacy airline. One of which is that you must have a lower cost structure. We brought fares down 40% on average. We came in as a proper low-cost airline," says 1time CEO Rodney James. The airline also points to other innovations introduced into daily operations, including ticketless air travel through Internet bookings, on-board food and beverage sales. Low fares are never subject to availability or restrictions, but advertised, "as is" and low fares advertised for every seat, on every flight, at any time, every day.
In a bid to expand 1time's operations, idyllic Zanzibar has been added to its already exhaustive route network.
The airline would like to cover a larger portion of the continent, but SAs lack of an open-skies policy prevents such a venture.
Orsmond is not happy with the regulatory status quo, but still sees a silver lining in the sky.
"The airline will grow its domestic routes and frequencies, grow ancillary revenue and look to grow into Africa," he says.
1time is also thriving in an industry with a serious skills shortage. Foreign airlines are constantly recruiting local talent to their shores.
"The aviation industry globally is facing shortages in both technical support and crew," says an independent aviation analyst. On the local front, he says the industry is suffering from "natural attrition" and is not doing enough to address the skills shortage. "There is no pool of talent to rely on," he says.
What started on January 22 2004 as a Johannesburg to Cape Town route, has grown into a flight schedule that covers major local coastal areas.
The airline now operates more than 1 000 flights a month.
"Our domestic route strategy is to provide an air service on the eight biggest routes in the country. These routes represent 90% of the total domestic market. In general, we achieve a minimum market share of about 15% on the routes we operate," says Orsmond.
Since its inception, 1time has managed to capture close to 12% of the local market and in spite of the prevailing economic realities, it expects to improve on this performance.
The airline has achieved an average 84% load factor over the past four years. And, says Orsmond, profitability depends on "the average airfares (yield) we achieve and the prevailing fuel price at the time".
Orsmond says sustainability is built around the two pillars of "more nice, less price". The "more nice" pillar is achieved by focusing on the brand promise of good service. This ensures that flyers keep coming back because of the product experience. Value is created by exceeding flyers' expectations.
The "less price" pillar is achieved by having the lowest costs, enabling the airline consistently to offer the lowest prices on the market.
"Our uniqueness is achieved by being the only airline to perform on both price and service. Low prices do not compromise service," he says.
Part of the airline's confidence is attributed to its belief in its dollar earning aircraft-maintenance business.
Aeronexus, a comprehensive maintenance company specialising in narrow body aircraft since 1984, maintains mainly African full-service airlines such as Zambian Air.
This lucrative business is set to expand soon after the acquisition of land close to O R Tambo International Airport.
"Prospects remain positive for revenue growth this year for the airline, maintenance and charter business, in spite of the slowdown in gross domestic product growth as a result of the negative impact of higher interest rates and the electricity crisis," the company says.
Its charter business, 1time Charters, operates four wholly-owned aircraft.
These consist of a DC9-15 that seats 85 and three 110 seater DC9-32s.
1time Charters also has access to 1time Airline's fleet of MD aircraft, which carry 130-157 passengers.
The company, which caters to groups of between 20 and 400 passengers, lists as its main clients large tourist groups, government and corporate travel, sports teams and school tours.
It says the charter market has grown dramatically in Southern Africa as SA has become a destination of choice for leisure and sport.
"Due to the tourism expansion, several new, large five-star resorts have recently opened for business and many more are under construction, increasing the demand for tailor-made charters," the company says.
"1time Charters has identified an opportunity in this market and the company is confident that the business will grow from strength to strength."
1time Airline - A low-cost SA airline
Nevertheless, the charter business did not perform as well as the airline and maintenance businesses last year. Orsmond attributes this to the usage of charter aircraft by the airline. The company is, however, expecting to make full use of its charter fleet this year.
Though the weakening rand is expected to have a negative impact on the airline business, Orsmond is certain it will have the opposite effect on the charter and maintenance subsidiaries.
"The steep increase in the price of oil during the first quarter of this year is of serious concern and will have a major impact on first-half earnings for the airline as the market takes time to adjust to the higher rand-fuel prices and associated higher airfares," Orsmond says.
1time recently appointed Tania Muradzikwa as nonexecutive director to the board of directors.
Its empowerment partner is Mogwele Investments, led by Sipho Twala, who serves on the airline's board as group chairman.
"1time is the first privately owned airline to commit itself to the objectives and targets set out in the aviation transport charter. These include a targeted 25% black empowerment shareholding. The airline is furthermore committed to consistently offering the lowest airfares to the public to make air travel accessible to those previously denied the opportunity," Orsmond says.
