South Africa's first majority black- and woman-owned low-cost airline, Fly Blue Crane, has run into funding constraints that threaten its survival a little more than a year after it launched. The airline has been in talks with one of the major Gulf carriers aimed at securing a cash injection in the region of $2-million (about R28-million) in return for equity. In addition to the money, Fly Blue Crane would have benefited from partnership links with the international Gulf airline. But the talks have stalled and industry insiders with knowledge of the proposed deal said problems began when Fly Blue Crane engaged with the Industrial Development Corporation in search of funding.Complicating the issue was the fact that Fly Blue Crane is in competition with SA Express, a state-owned entity like the IDC. Last week cash-strapped SA Express announced it was suspending its Johannesburg flights to and from East London and Port Elizabeth, as well as its Cape Town-Durban service. Fly Blue Crane'...
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