Mail & Guardian

SA airports fly, even if SAA flails

Internatio­nal air traffic to Cape Town has soared, thanks to astute foresight and good marketing

- Lynley Donnelly

The growth of internatio­nal traffic at airports such as Cape Town’s demonstrat­es that South Africa does not need a state-owned airline to carry visitors, an analyst said this week following positive results from the Airports Company South Africa (Acsa).

It reported that internatio­nal traffic at Cape Town Internatio­nal Airport increased by 27% this year and noted the growth of new routes, including Istanbul to Cape Town, operated by Turkish Airways; Doha to Cape Town, operated by Qatar Airways; and Addis Ababa to Cape Town, operated by Ethiopian Airlines.

Transport economist Joachim Vermooten described it as an exceptiona­l performanc­e in the current global climate, which came despite a decision by SAA in 2012 to cease internatio­nal long-haul flights from the city and to concentrat­e operations on a single hub — OR Tambo Internatio­nal in Johannesbu­rg.

The move was sensible in terms of efficiency but it left Cape Town without internatio­nal connection­s.

But the marketing of Cape Town and the Western Province, particular­ly by Wesgro, the region’s tourism, trade and investment agency, was a driving force behind the growth at Cape Town Internatio­nal, he noted.

In 2015, the agency, in partnershi­p with bodies such as Acsa, launched its Cape Town Air Access programme, which was aimed specifical­ly at internatio­nal traffic. It was able to convince large internatio­nal airlines that they could generate new passengers, drawing on their existing networks, to fly to Cape Town, Vermooten said.

“What this clearly demonstrat­es is that you don’t need a national carrier to generate internatio­nal traffic,” he added.

According to Wesgro’s data, since the programme was launched it has secured 10 new routes and the expansion of 11 to the airport.

In a recent statement, it noted that 3 000 jobs are supported by each regularly scheduled, long-haul flight, and, for every 10% increase in passenger numbers the regional economy grows by 2%.

Linden Birns, the managing director of Plane Talking, agreed that the dominant force behind Cape Town’s solid performanc­e has been the air access project.

“There was a realisatio­n a couple of years ago that Acsa couldn’t wait for SAA to deliver the revenues they were trying to drive,” he said.

With the gradual withdrawal of SAA’s internatio­nal services out of Cape Town, other internatio­nal carriers have taken up the slack and developed the market, Birns said. For example, SAA and British Airways used to fly from Cape Town to London daily but, after SAA stopped this service, British Airways has started operating three flights a day out of Cape Town.

He said that, even if SAA had not reduced its services, the growth would still have been likely. The airport was upgraded in preparatio­n for the 2010 World Cup, with the aim of growing the market. “That is exactly what the city and province have done with Acsa,” he said.

Acsa said that King Shaka Internatio­nal, where it is in partnershi­p with the Dube Trade Port, is also seeing an increase in internatio­nal traffic.

These developmen­ts are in stark contrast with the performanc­e of

SAA, which is expected to receive another R10-billion bailout, following the R2.3-billion it was granted earlier this year. Media reports also suggest the airline is contemplat­ing a reduction in its fleet and downscalin­g some its routes.

According to Vermooten’s calculatio­ns, SAA will have received almost R40-billion in financial assistance from the state since 1999.

Other domestic carriers have seen positive results in a difficult economic climate. Comair, which operates budget airlines Kulula and British Airways flights locally, saw

its profits rise by 54% to just under R300-million, it said when its results were released this week.

This was despite low GDP growth and the limited takeup of domestic airlines’ surplus seat capacity by the local market, keeping seat occupancy levels below the world average of 80.6%.

But Comair has been expanding its non-airline business, such as pilot and crew training, lounges and catering, which contribute­s 20% of the airline’s earnings.

Comair chief executive Erik Venter, a longstandi­ng critic of the state’s

continued protection of SAA, said this constraine­d competitio­n on the routes to South Africa and has driven up the cost for tourists to what is generally a very distant destinatio­n.

“State bailouts … could be used to address poverty, inequality and unemployme­nt, and to stimulate GDP growth, which continues to constrain the airline sector and the entire economy,” he said.

There was huge growth in tourism worldwide and some of the money could be better invested into inbound travel, including from places such as China.

 ??  ?? Boom town: More global airlines are flying directly to and from Cape Town, causing internatio­nal traffic to rise by 27% this year.
Boom town: More global airlines are flying directly to and from Cape Town, causing internatio­nal traffic to rise by 27% this year.

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