BA Comair/Kulula.com – Getting the Balance Right?

Abstract

A plane flies overhead. As if on automatic pilot, Gidon Novick glances out of his second floor office window. In reality, he doesn't really notice the plane. His thoughts are elsewhere. He is planning: considering possibilities, ideas that could work for either kulula.com or British Airways Comair. “We are always trying to improve our service and stay true to our brands,” he says.

Novick is a visionary, an ideas man. He and Eric Venter are joint Chief Executive Officers of Comair. Comair is the umbrella company for the premium market airline, British Airways Comair and the low-cost airline, kulula.com. While they have two polar opposite brands in their stable, they have so far managed to stay true to both of them. “The average passenger is not even aware that kulula is related to British Airways, never mind run by the same people,” says Jackie Walters, professor of transport and logistics management, University of Johannesburg.

Venter and Novick don't see running the two airlines in one business as a problem. Instead, this is viewed as an asset that brings certain challenges. To date, it has been a winning formula in dealing with a fluctuating aviation market.

Comair has two successful airlines under its belt and the company's only serious competition is the parastatal and national carrier, South African Airways (SAA).

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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