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

EgyptAir receives fourth Airbus 320neo at Cairo International Airport

EgyptAir’s fourth A320 Neo aircraft arrived today at Cairo International Airport from 15 aircrafts the company has contracted for, from Airbus factory in Toulouse, France, in cooperation with Aercap.

Kenya Airways appoints Allan Kilavuka as chief executive

Kenya Airways yesterday confirmed it has appointed Allan Kilavuka as chief executive of the airline.

Watching this space

With space-based air traffic management gaining traction globally, Thomas Kgokolo, the interim CEO of South Africa’s Air Traffic and Navigation Services (ATNS), speaks to Keith Mwanalushi about system integration in Africa.

Rolls-Royce BR725 engine tops one million flying hours

The Rolls-Royce BR725 engine recently achieved another impressive milestone by reaching one million flying hours.

Air Mauritius CEO elected on to IATA Board of Governors

The CEO of Air Mauritius and Vice President of AFRAA Somas Appavou will support main objectives of Air Mauritius Africa’s regional airlines and address major challenges region is facing through the most influential global industry

Aviation Africa opens in Ethiopia next week

One of the most strategically important aviation events in the 2020 calendar opens next week in Addis Ababa, Ethiopia – 4 & 5 March.

AVMENA20 SK1309100620
See us at
AVAFA20BT2207050320AVMENA20 BT1309100620