OR Tambo REVIEW
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OR TAMBO INTERNATIONAL AIRPORT
Africa’s Biggest and Busiest
Despite the trauma of the Covid-19 pandemic, OR Tambo International Airport remains Africa’s biggest and busiest airport. At its peak it handled almost 20 million passengers a year, which is more than half of South Africa’s total air travelling passengers. With the resumption of both domestic and limited international flights OR Tambo is on the rebound but it is expected to take three to five years to recover to previous levels. 76
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ABOVE: The impressive new SACAA and ACSA head office as it will appear when complete.
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is the commercial aviation hub for Southern Africa and serves as the primary airport for domestic and international travel to and from South Africa. Although it is only expected to handle around 10 million passengers this year, the airport has the capacity to handle up to 28 million passengers each year. It is also one of the few airports in the world to host non-stop flights to all continents (except R TAMBO
Antarctica, which Cape Town International does). In 1996, OR Tambo overtook Cairo International Airport as the busiest in Africa, and across the whole of the Middle East and Africa OR Tambo airport is the fourth-busiest after Dubai, Doha and Abu Dhabi Airports. In the 2015 World Airport Awards, OR Tambo was named the best airport in Africa, with Cape Town coming in second, and King Shaka in Durban finishing third. This is a tribute to ACSA – the Airport Company of South Africa, which operates these airports. Situated almost 1,700 metres (5,500 feet) above sea level and with temperatures often climbing above 30 degrees Celsius, OR Tambo, with its ‘hot and high’ conditions, is an ideal destination for airliners conducting weight and temperature (WAT) certification and proving flights. Notably, it was used as a test airport for the Concorde during the 1970s, to determine how the aircraft would perform while taking off and landing at high altitude. Similarly, on 26 November 2006, the airport became the first in Africa to host the Airbus A380. The aircraft landed in Johannesburg on its way to Sydney via the South Pole on a test flight. In 2014, Airbus returned to OR Tambo to test its next clean sheet design – the A350. As part of its certification flights for the A350, Airbus conducted hot and high performance as well as auto-landing trials on Runway 03R. Although the 4,4 km long Runway 03L/21R is one of the longest commercial international airport runways in the world, aircraft taking off from OR Tambo must often reduce weight by loading less fuel than they would otherwise. In particular, second segment climb performance for twin engine jets can be a limiting factor. On some of the longer routes, such as flights from Johannesburg to North America, some aircraft types have to refuel en-route, while for
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the return flight, because takeoff from New York is from a lower altitude airport, they can upload enough fuel to reach Johannesburg non-stop. AIRSIDE
There are two parallel north/south runways and a disused cross runway. Both runways are equipped with Instrument Landing Systems (ILS). Furthermore, all runways are equipped with Approach Lighting Systems with sequenced
expansion of the international terminal, with the new international pier (opened in 2009) increasing capacity and accommodating the Airbus A380. A new Central Terminal building was completed on April 1, 2009. An additional multi-storey parkade was built in January 2010, at a cost of R470 million, opposite the Central Terminal Building. Terminal A was also upgraded and the associated roadways realigned to accommodate more International Departures space.
OR Tambo GM Bongiwe Pityi-Vokwana has big plans despite Covid-19.
flashers, and touchdown zone (TDZ) lighting. The cross runway is now a taxiway. During busy periods, outbound flights use the western runway, 03L/21R, for takeoff, while inbound flights use the eastern runway, 03R/21L, for landing. Naturally wind direction is a determining factor; however, due to the prevailing conditions, on most days, flights takeoff to the north and land from the south. UPGRADE DEVELOPMENTS
The airport’s most recent major development was done for the 2010 FIFA World Cup. These included 78
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This massive upgrade has proved to be sufficient to meet the growth in passenger numbers since the World Cup. The Central Terminal Building, which cost R2 billion, boosted passenger capacity at the landside of the terminal, additional luggage carousels were added and the terminal now allows direct access for both international and domestic travellers. The new International Pier, which cost R535 million to build, increased international arrivals and departures capacity in a two-storey structure and added nine airside contact stands, four of which are Airbus A380 compatible. To develop the key non-
airside revenue, the large duty-free mall has been extended into this area, and additional lounges and passenger-holding areas have been constructed on the upper level. There was a proposal for a second ‘midfield’ terminal to be built between the two runways, but this has been cancelled. It would have contained its own domestic and international check-in facilities, shops and lounges and was projected to cost R8 billion. The terminal would have been designed for power in power out operations for low cost carriers, thus reducing the costs of airport handling with air bridges and aircraft tugs for push back.
PENDING DEVELOPMENTS
Although under previous growth projections OR Tambo was scheduled for further expansion, these plans have been put on hold due to the Covid-19 pandemic. In 2019 OR Tambo unveiled the first phase of a R4.5 billion mixed-use development that will form part of a massive seven-phase plan to revamp the airport. The first phase will see the construction of three six-storey office buildings with a floor area of 33,000 square metres. Construction began in February 2020 with an anticipated completion date for the first phase at the end of 2020. This
21R IS ONE OF THE LONGEST COMMERCIAL INTERNATIONAL AIRPORT RUNWAYS IN THE WORLD To accommodate the increase in car traffic, a multi-story parkade was built and the airport now has more than 16,300 parking bays, when combining the parking available in the parkade, shade parking, carports and open parking. Although not airside development related a massive new building to house the ACSA head office and the Civil Aviation Authority is being completed in the airport precinct Terminals A and B host over 140 retail stores, with Duty Free stores based airside in Terminal A. The stores are open daily from 06h00 to 22h00. These extended hours include the banks, pharmacy, post office and bureau de change. There is a 24hour travel clinic, and the airport’s police station also operates around the clock.
has now been pushed out. OR Tambo GM Bongiwe PityiVokwana, said that the airport plans a further 180,000 square metres for a mixed-use development to be located on the northern precinct of the airport. She added that the mixed-use development will consist of a variety of buildings which are framed in such a way as to form a boulevard at the international departures level, where a variety of retail commercial and ancillary buildings each open onto a vibrant energetic ‘street’ environment serviced by lively restaurants, corner cafes and bars. It will also improve the airport’s connectivity from the Gautrain station and to existing hotels and facilities via pedestrian-friendly connections to the international terminal building. FURTHER BROAD DEVELOPMENT
In addition to this development, O.R Tambo International’s long-term infrastructure plan features midfield cargo and midfield passenger terminals, each requiring several billion Rands in further investment, said Pityi-Vokwana. These developments
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will accommodate growing passenger demand and expand the midfield cargo facilities at the airport to accommodate up to two million tonnes of air cargo annually, she said. “At the same time, airport users will start to see Covid-19 and the SAA debacle has reduced OR Tambo operations by approximately 50%.
upgrades to the existing terminal buildings,” she said. “So, we are entering a very exciting period in the life of our airport which supports about 38,000 jobs in and around the precinct,” said Pityi-Vokwana. “We are excited about the upliftment that the Western Precinct development which will act as a catalyst to create a new multi-functional node where big businesses will ultimately migrate in terms of office and hotel accommodation,” she said. “This node will be made more attractive by the intermodal connectivity offered by Gautrain and Bus Rapid Transport stations within a precinct, the ultimate development of which, will allow for easy access to hotels, restaurants, fast food facilities, outdoor seating, retail, offices and a world-class conference centre.”
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Airlines Unable to Cut Costs Deep Enough to Save Jobs The International Air Transport Association (IATA) has presented analysis showing that the airline industry cannot slash costs sufficiently to neutralise severe cash burn to avoid bankruptcies and preserve jobs in 2021.
used the findings of its study to repeat its call for government relief measures to sustain airlines financially and avoid massive employment terminations. IATA also called for pre-flight COVID-19 testing to open borders and enable travel without quarantine. IATA has revised its earlier projections of recovery downwards. Total industry revenues in 2021 are now expected to be down 46% compared to the 2019 figure of $838 billion. The previous analysis was for 2021 revenues to be down around 29% compared to 2019. This was based on expectations for a demand recovery commencing in the fourth quarter of 2020. Recovery has been delayed due to new ‘second wave’ COVID-19
IATA
outbreaks, and government mandated travel restrictions including border closings and quarantine measures. IATA now expects full year 2020 traffic to be down 66% compared to 2019, with December demand down 68%.
remain in place. Without additional government financial relief, the median airline has just 8.5 months of cash remaining at current burn rates. And we can’t cut costs fast enough to catch up with shrunken revenues,” said Alexandre de Juniac, IATA’s Director General and CEO. Although airlines have taken drastic steps to reduce costs, around 50% of airlines’ costs are
Costs have not fallen as fast as revenues.
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“The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines
fixed or semi-fixed, at least in the shortterm. The result is that costs have not fallen as fast as revenues. For example, the yearon-year decline in operating costs for the second quarter was 48% compared with a 73% decline in operating revenues, based on a sample of 76 airlines.
Parked airliners - the second Covid-19 wave has made IATA projections even worse.
Furthermore, as airlines have reduced capacity (available seat kilometres, or ASKs) in response to the collapse in travel demand, unit costs (cost per ASK, or CASK) have risen, since there are fewer seat kilometres to ‘spread’ costs over. Preliminary results for the third quarter show that unit costs rose around 40% compared to the year-ago period. Looking forward to 2021, IATA estimates that to achieve a breakeven operating result and neutralize cash burn, unit costs will need to fall by 30% compared to average CASK for 2020. Such a decline is without precedent. Factors contributing to this analysis include: • With international demand down nearly 90%, airlines have parked thousands of mostly long-haul aircraft and shifted their operations to short haul flying where possible. However, because the average distance flown has fallen sharply, more aircraft are required to operate the network. Thus, flown capacity (ASKs) is down 62% compared to January 2019, but the in-service fleet is down just 21%.
Aircraft lease costs have dropped less than 10% over the past year. • Around 60% of the world aircraft fleet is leased. While airlines have received some reductions from lessors, aircraft lease costs have dropped less than 10% over the past year. • It is critical that airports and air navigation service providers avoid cost increases to fill gaps in budgets that are dependent on pre-crisis traffic levels. Infrastructure costs have fallen sharply because of fewer flights and passengers. Infrastructure providers could cut costs, defer capital expenditures, borrow on capital markets to cover losses or seek government financial relief. • Fuel is the only bright spot with prices down
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42% on 2019. Unfortunately, they are expected to rise next year as increased economic activity raises energy demand. • While IATA is not advocating specific workforce reductions, maintaining last year’s level of labour productivity (ASKs/employee), would require employment to be cut 40%. Further jobs losses or pay cuts would be required to bring unit labour costs down to the lowest point of recent years, a reduction of 52% from 2020 Q3 levels. • Even if that unprecedented reduction in labour costs were to be achieved, total costs will still be higher than revenues in 2021, and airlines will continue to burn through cash. “There is little good news on the cost front in 2021. Even if we maximise our cost cutting, we still won’t have a financially sustainable industry in 2021,” said de Juniac.
Yields are not profitable
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“The handwriting is on the wall. For each day that the crisis continues, the potential for job losses and economic devastation grows. Unless governments act fast, some 1.3 million airline jobs are at risk. And that would have a domino effect, putting 3.5 million additional jobs in the aviation sector in jeopardy along with a total of 46 million people in the broader economy whose jobs are supported by aviation. Moreover, the loss of aviation connectivity will have a dramatic impact on global GDP, threatening $1.8 trillion in economic activity. Governments must take firm action to avert this impending economic and labour catastrophe. They must step forward with additional financial relief measures. And they must use systematic COVID-19 testing to safely reopen borders without quarantine,” said de Juniac.
MAINTENANCE Star Air Maintenance Pty Ltd (SAM) is a subsidiary company of Star Air Cargo Pty Ltd, that provides all the AOC’s maintenance requirements up to C check. We are based at O R Tambo International Airport and our team of highly qualified engineers offer line maintenance to third parties. Boeing 737-200 Boeing 737 Classics Based at OR Tambo International Airport, Johannesburg South Africa. Contact: lieb@starcargo.co.za or peter@starcargo.co.za Tel: 011 395 3756 and 011 973 5512
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