The latest aviation data for southern Africa indicate that scheduled capacity is 45.7% down in October on what it was in October 2019. The cost of jet fuel is one of the big burdens for air transport operators in southern Africa. One reason is because jet fuel is no longer produced in South Africa.
SAA acting CEO Thomas Kgokolo suggests having a regional airline group could help reduce costs.
Aaron Munetsi, CEO of the Airline Association of Southern Africa, described fuel charges as exorbitant.
Southern Africa’s transport operators are facing several challenges, but among the chief concerns is the rising cost of jet fuel.
Jet fuel is now 116% more expensive than it was this time last year, which is further exacerbated by exorbitant fuel charges, says Aaron Munetsi, CEO of the Airline Association of Southern Africa (AASA).
Jet fuel is no longer produced in South Africa and it has to rely on imported stocks.
AASA held its 51st Annual General Assembly virtually on Thursday. There are currently 17 airline members and 35 so-called associate members, including infrastructure service providers, several oil companies, major aircraft manufacturers, engine manufacturers, ground handling companies, service providers, other industry associations and partners.
During a panel discussion at the AGA, South African Airways CEO Thomas Kgokolo said a regional airline group could be one solution to the rising costs associated with fuel.
Resource pooling
Maybe having a regional airline group can address the challenges like fuel costs, SAA’s acting CEO Thomas Kgokolo said during a panel discussion.
"The market is very fragmented currently at a decision making, policy making and information sharing level and this fragmentation leads to connectivity being low on the continent. Support need not be cash, but could be a form of subsidy to ensure all airlines can benefit," he said."Resource pooling could, therefore, help to stimulate the market, but of course one has to be careful of competition boundaries. The post-pandemic recovery in Africa in terms of air traffic requires bold decisions. Our biggest challenge [in the region] is that we are now much more fragmented due to the impact of the pandemic and working in silos."In September this year SAA and Kenya Airways said they want to look into a long-term goal of co-starting a Pan-African airline group. The two airlines signed a memorandum of co-operation in this regard.While aviation demand in the southern African region is slowly returning, largely driven […]