The information provided on this response is based on data provided by SAA and BA (two of the airlines that provides Business Class Cabins in the country).
The following assumptions apply:
Observations
If all Business Class tickets for 2019 were to be converted to Full Y Economy class tickets, on the two mentioned airlines only, Government could have saved R12 672 956.
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COST ANALYSIS FOR FLYING BUSINESS CLASS COMPARED TO ECONOMY CLASS |
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British Airways |
South African Airways |
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Total cost (2019) |
Total # Legs |
Average price per ticket per leg |
Total cost (2019) |
Total # Legs |
Average price per ticket per leg |
Business Class |
R23 676 021 |
8967 |
R2 640 |
R83 320 961 |
12873 |
R6 473 |
Economy Class (Full Y) |
R53 511 915 |
32509 |
R1 646 |
* |
* |
R6 181 |
Difference between Business Class and Economy class ticket |
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R994 |
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R292 |
Estimated saving per Airline |
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R8 915 759 |
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R3 757 196 |
Total Estimated Saving |
R12 672 956 |
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Notes: |
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* Not provided |
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Conclusion
The pronouncement made by Minister of Finance to cut Business Class travel will yield the desired outcome.