Airtime Airlines: Pay by the Minute to Fly

In yet another novel attempt to inject some life into the struggling airline industry, South African Airtime Airlines is preparing to launch iFly Airtime, a pay-as-you-fly system that allows passengers to purchase “flying minutes” and book flights using the text message function on their cell phones.  

From its hub in Durban, the company is offering flights to one of three destinations – Cape Town, Port Elizabeth and Johannesburg – each leg valued at a set number of “flying minutes,” regardless of any potential flight delays.  For example, a one-way flight between Durban and Johannesburg will cost 75 minutes of airtime, the hook being that the “flying minutes” for sale fluctuate in price depending on larger industry factors, prompting those in search of the best deal to engage with the airline’s site more often.  

To eliminate the wholesale purchase of minutes for flights – that are already well below the current market price – all reservations must be booked within 90 days of purchasing airtime and all travel must take place within 365 days.  In an interesting bit of co-branding, those not able to book within the requisite timeframe won’t lose their minutes, but instead will have the option of transferring them over to one of three cell phone companies – MTN, Vodacom or Cell C.  To further this relationship, flyers who sign-up for the frequent flyer program will receive a free phone from one of the above providers after purchase of their first flight.

Admittedly, while the theory behind the pricing model is certainly creative, we find that overall it’s a bit confusing given the volume of dates and numbers one must keep track of, however, with only three destinations being offered, Airtime Airlines is setting their sights small in the beginning, a move that allows them to compete with more established airlines as they build a following.  Their long term success won’t ultimately be determined by their unusual payment system – though its novelty will certainly attract some curious customers – but rather the level of service and quality that keeps those same people coming back. And for the time being at least, that remains up in the air. 

[via Wired]