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
Advertisement
Latest News

SAX employees assist in saving the airline

A group of South African Express employees have engaged an equity funding platform, Uprise.Africa, to assist in raising the capital needed to save SA Express.

2020 MRO spend expected to drop by more than 50%

With MRO industry revenues directly related to aircraft utilisation, 2020s total MRO spend will be less than half of the approximately $90bn forecasted, according to the leading aviation data and advisory company IBA.

Gulfstream advances G700 flight-test programme

Gulfstream Aerospace has announced the all-new, industry flagship Gulfstream G700 flight-test programme is making progress with a number of accomplishments in testing and performance.

Boom and Rolls-Royce collaborate on Overture

Boom Supersonic, an aerospace company building the world's fastest civil aircraft, and Rolls-Royce, has announced an engagement agreement to explore the pairing of a Rolls-Royce propulsion system with Boom's flagship supersonic

Time to take aim at shootdowns

Times Aerospace correspondent - Martin Rivers - wants the air transport industry to be worried about shootdowns before not after they happen.

Kenya Airways resumes international passenger flights

Kenya Airways will be resuming its international passenger services on Saturday 1 August 2020 following the easing of movement restrictions as directed by H.E President Uhuru Kenyatta.

AMAC SK2907290121
See us at