in Home / Air Transport

Southern African airlines face crisis

Posted 9 October 2015 · Add Comment

The Southern African airline industry is facing a crisis as demand for flights decreases and profits drop.

The Airlines Association of Southern Africa (AASA) has warned that the airlines ability to create jobs and stimulate economic growth is under threat, mirroring the lack of economic growth across the region.
 
AASA CEO Chris Zweigenthal explained: “Most African airlines have been unable to follow suit and remain stuck in an on average 0.8 percent (USD1,59 per passenger) profit margin band with IATA forecasting a combined return of around USD100m across the continent again this year.”
 
“What is missing is an alignment of governments’ policies and strategies to let airlines safely, efficiently and affordably carry more people and goods on more routes linking more towns and cities, more frequently, across the continent.”
 
The industry has suffered over the last 12 months due to the economic and social impact of the Ebola outbreak, whilst oil and aviation fuel prices dropped, which should have resulted in a fairly successful year.
 
This is not the case, as Zweigenthal said: “Economic uncertainty characterised by labour disputes, electricity shortages, weakened currencies in some markets, a rampant US dollar in others, such as Zimbabwe, and more recently, the downturn in China’s fortunes have pushed those of the airlines and of the region back over the horizon.”
 
Zweigenthal believes the governments need to step in, in order to help the industry recover. 
* required field

Post a comment

Other Stories
Latest News

Aerosud Aviation in partnership with DB Schenker South Africa

Aerosud Aviation has selected DB Schenker South Africa as its new logistics partner.

Africa's first "civil" C295 begins humanitarian operations from Kenya

DAC Aviation International has received the first Airbus C295 to be used on the civil registry in Africa,

Angola orders C295s for maritime surveillance

Angola has ordered three C295 transport aircraft from Airbus Defence and Space, writes Jon Lake.

Inmarsat and Panasonic Avionics in strategic collaboration for Commercial Aviation

Inmarsat and Panasonic Avionics Corporation (Panasonic) have agreed a strategic collaboration, for an initial ten-year period, that enables them to combine their highly complementary market leading services to offer broadband

AAD: Helix – the manned ISR platform

CADG chose AAD to launch its new manned intelligence, surveillance, and reconnaissance (ISR) platform – Helix.

AAD: Aurecon bringing its African ideas to life

Aurecon was at AAD for the first time to highlight its engineering capabilities and products. “We want to become a true African business,” explained managing director, Africa, Ferdi Nell.

TAA SK1009311218
See us at
MarrakechAirshow BT2507241018AviationAfrica_BT0607280219AAD2018 BTAirCargoAFA_BT220318210219