Airlink keeps growing, grows fleet

South Africa's Airlink keeps growing organically. It's a tough market to trade in; air traffic is growing even as the economy collapses from ongoing (and getting worse) power cuts. According to ch-Aviation, the airline has an active fleet of 55. Today, Falko, the Irish lessor, announced they had placed two more E190s with Airlink that had previously operated at Azul. “Falko is delighted to announce the delivery of these two E190 aircraft to South Africa’s leading airline, Airlink. The latest deliveries further cements Falko’s longstanding relationship with Airlink which incredibly spans more than two decades” Mark Hughes, Falko’s Chief Commercial Officer notes. “The airline continues to enjoy great success as it capitalises on the strong post-Covid demand for air travel and its increase in African market share. These additional E190 aircraft expand Airlink’s existing E-Jets focused fleet and supports the airline’s expansion plans as it consolidates its position as South Africa’s leading domestic and regional airline.” The decision by Airlink to stay within the Embraer family has proven to be a great choice. The market has recovered but remains unstable because the government is trying to restart South African Airways. Even though this airline is now run by private capital, the state's fingers remain enmeshed. The chart lists the average number of passengers per flight in South Africa through August 2023. Yes, there has been a good recovery - but the average load remains better suited for an E-Jet than an A320 or 737. Like most developing countries, South Africa has a weak currency relative to the US Dollar. Its oil is paid for in US Dollars, and that currency impact translates directly into fuel costs for its airlines. Airlink, therefore, is doing the right thing - picking up used E190s as opportunities allow. These aircraft have the range to fly beyond the country's borders, which enables better opportunities as the domestic market is over-traded. An E-Jet performs better with a 75% load factor than an A320 or 737 with a 50% load factor. Airlink also has no compunction to cut markets that cannot turn profitable. The airline serves 13 counties already. Moreover, Airlink has a growing list of airline partners with codeshare agreements. Airlink is well placed to survive in one of the toughest airline markets.

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