in Air Transport

AFRAA: South African strategy due in December - but is merger an option?

Posted 20 November 2012 · Add Comment

South Africa's minister of Public Enterprise, Malusi Gigaba says South African Airways will deliver its strategy paper to him on December 15th.

Speaking at the Sanditon Convention Centre in Johannesburg on the sidelines of the AFRAA annual assembly, where he was the VIP guest, he said the airline was consulting various government departments to formulate the strategy to take the airline forward following the departure of the former management board.

Regional cooperation with other airlines could be a key element of the plan – or it would be if Kenya Airlines CEO Titus Naikuni had anything to do with it.

Speaking at the conference Naikuni said “People here think of airlines like Kenya, South African and Ethiopian as big carriers. We are not we are small. Perhaps we should be talking to merge to create a single African carrier.”    The suggestion caused Zemedeneh Negatu, the managing partner of Ernst & Young in East Africa to later show a chart demonstrating that if the three carriers did come together they would still only be half the size of Emirates.                                                                                                                                     Pictured: Minister Gibaba    

Naikuni (pictured left)  said “The lions are outside and they are roaring at the gates of Africa,”

He said that even without merger, African airlines were struggling to work together. “Our skies are not open. We have capacity but we can’t access the market. We just give the rights away to non-African airlines.”

Minister Gibaba said: “The working environment in South Africa is robust for the aviation sector.  South African skies are liberalised, and the support that government has given the private airlines in terms of legislation and policy has been adequate.”

Ethiopian Airlines CEO Tewolde Mariam said that there was a role for the African Union to play. “This is older that the European Union but we are lagging behind. We don’t have a regional regulatory freemwork everything is done on a bilateral basis. That is why 80% of the market is with non African airlines.”

Like South African chairman and acting CEO Vuyisile Kona, Tewolde shrugged off the merger suggestions, but conceded, “something has to be done.”

According to Gigaba, there are clear priorities for SAA including increasing route networks, specifically the growing market destinations for aviation such as India, China and South America and aligning policy with the relevant government bodies for issues such as visas, tourism and transport .

* required field

Post a comment

Other Stories
Advertisement
Latest News

Gainjet Ireland takes delivery of the world’s first EJ-registered aircraft

Celebrating 90 years of the Irish aircraft registry with the Irish Aviation Authority, GainJet Ireland added to the celebrations with its recently acquired Embraer Lineage 1000 EJ-IOBN, being the first aircraft to be registered under

Airports Company South Africa get environmental management certification

All nine of Airports Company South Africa’s airports have been certified as compliant with the most-recognised international standard for environmental management systems.

Ethiopian takes delivery of its eighth freighter

Ethiopian Cargo & Logistics Services has taken delivery of its eighth B777 freighter aircraft in its cargo fleet family, on November 10, 2018 at its home base at Bole International Airport.

Bristow floats fixed-wing passenger service in Nigeria

One of the world’s major helicopter operators is planning a fixed-wing service in Nigeria. Alan Dron finds out more.

A harsh time for Corsair International

Corsair, one of the major actors in the Indian Ocean for nearly 30 years will stop serving the islands of Madagascar and Mayotte.

Military gains for Indonesia in Africa

Indonesia is making inroads into the African military transport market. Jon Lake reports.

TAA SK1009311218
See us at
AviationAfrica_BT0607280219AirCargoAFA_BT220318210219