South African Airlines

CemAir’s CEO - Miles van der Molen Did CemAir use the opportunity to undertake extensive aircraft maintenance during the lockdown period?

• Whether transport category aircraft fly or not a significant amount of maintenance is required. As far as possible, we have kept the fleet operationally ready.

Q) How did the lockdown period affect CemAir’s pilot and cabin crew training?

• We are reliant on overseas simulators for around 60% of our training so the lockdown has made this logistically impossible. With the repatriation flights we were able to keep sufficient crew current and once training facilities reopened locally, we continued with training and we shortly expect to have access again to foreign simulators.

• Now that restricted local flights are allowed, how is this affecting CemAir’s business?

• We were the first airline to return to the skies after the lockdown. However, the limitations on type of travel and number of destinations severely restricted demand. Presently there is an excess of seats available to all the airlines operating under the Level 3 restrictions.

Q) What have your passenger loads been like at Phase 3 of the lockdown?

A) The demand is subdued and we are seeing low passenger numbers and static growth. We are seeing a low-cost carrier price its ticket stock extremely aggressively, but even so this has resulted in limited market stimulation. We hope passenger numbers will increase as restrictions are eased.

Q) Is CemAir exploring new routes, especially now that several of the state-owned airlines are technically bankrupt?

• We anticipate significant industry changes and this will certainly result in opportunities. The situation is also very dynamic and although the insolvency of the SOE airlines has been with us for some years it seems this may finally result in a permanent change to the industry. Once the market direction is clear we will pursue what we see as the most attractive opportunities.

Q) It is rumoured that Gidon Novick is intending to open a new low-cost carrier in South Africa. Your thoughts on this move?

A)

We have media reports of the intention, but I do not know of any detail. Given the macroeconomic position of SA and the fragile fiscal position it certainly would take a brave optimist to make an investment decision on such a scale in the post COVID-19 environment.

Q) When do you expect the commercial aviation industry to open fully?

A) We are hoping for further easing of restrictions during August, but fear we will not see unrestricted international travel during this calendar year. In the interim we expect to see additional airports open, leisure travel becoming permissible and regional travel being allowed.