No. 14 Aug-Oct 2011
A F R A A ’ S PA N A F R I C A N J O U R N A L O N A I R T R A N S P O R T
AFRICAN AIRLINES ASSOCIATION
43rd Annual General Assembly holds in Marrakech, Morocco The African Airlines Association (AFRAA) and its entire membership wish to announce that the 43rd Annual General Assembly and Conference will be held in Marrakech, Kingdom of Morocco from 20-22 November 2011. The event will be hosted by Royal Air Maroc. The AFRAA Annual General Assembly is the biggest air transport conference on the continent of Africa bringing together Chairmen and CEOs of African Airlines, top executives of aircraft and engine manufacturers, spare parts and component suppliers, ICT equipment and solution providers, distribution companies as well as leasing, financing, MRO, training and consultancy organisations. For sponsorship and exhibition opportunities, please contact: jindetie@afraa.org or telephone +254-20-2320144/8 for details. More information about the registration, hotel accommodation as well as air travel arrangements will soon be available on the AFRAA website: www.afraa.org
AFRICAN AIRLINES ASSOCIATION
!
August-October 2011
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foreword
Taking Advantage of Opportunities
T
he year 2011 started on a very
consultative and commensurate with the cost of providing the service.
optimistic note for the aviation
Fleet need to be modernized to meet African aviation carbon footprint
industry following a good
obligations, reduce cost and improve efficiency. Therefore, those States
2010 where record profits were
that have not yet acceded to the Cape Town Convention and Protocol
realized worldwide including in Africa.
should do so to reduce the cost of financing aircraft acquisition by
This optimism started to wane with
airlines. States should also remove unnecessary barriers to free
the political upheavals in North Africa
movement of people and goods on the continent as well as fully
and the Middle East in February, the
implement the Yamoussoukro Decision to facilitate the rapid
Japanese earthquake, tsunami and
development of African air transport. States should further allow free
the consequential nuclear crisis,
movement of capital across borders to speed-up consolidation and
which disrupted general business including air travel. The series of
mergers in the industry so that airlines can reap economies of scale and
unfortunate events were made worse by the steep rise in the price of oil.
raise additional capital.
The result is, according to IATA, a reduced global profitability forecast from about $8 billion to $4 billion and a loss of about $100 million for
Safety is a major issue in some States. The efforts by ICAO and AFCAC
Africa in 2011.
to enhance safety by, among other things, facilitating the development of regional safety oversight organizations and the setting up of AFI
Africa still suffers from some unique challenges. These include: the
Cooperative Inspection Scheme, human capital development and other
small size of most airlines; brain drain arising from predatory poaching
programmes are laudable as they enhance the safety oversight capacity
of highly experienced professionals from African airlines mainly from
of States. Countries on the EU list of banned airlines including the DRC
resource endowed aviation entities in the Middle East; dilapidated
(that is responsible for most accidents which tarnish the image of the
infrastructure at some airports; safety concerns in some States
continent) need to take advantage of these initiatives.
particularly the DRC, and relatively high costs as well as high taxes and charges. The DRC with its perennial accidents which over the last six
AFRAA will vigorously implement its 3 year business plan whose thrust
years has resulted in over 25 fatal accident and a loss of over 360 lives
is to encourage cooperation among airlines, reduce costs and enhance
has the effect of negatively tarnishing the whole of the continent’s
revenues through joint projects. Working in partnership with
aviation industry and providing a pretext for the EU to blacklist African
organizations like ICAO, IATA, AFCAC and ACI Africa, AFRAA hopes to
airlines including those with very good safety records such as LAM
enhance safety on the continent, uplift the image of African aviation,
Mozambique Airlines and Air Madagascar (see our feature on the DRC
develop human capital and continue its lobbying efforts aimed at
accidents).
promoting the development and sustainability of the industry.
However, plenty are the opportunities that African carriers can exploit. Africa has a population of over a billion people, underserved domestic and regional markets particularly in West and Central Africa and generally good yields. The average load factor in 2010 was 69%, much lower than world average of about 76% providing an opportunity for carriers to acquire the right aircraft specifically suited to the regional and domestic markets which holds the highest growth potential. To exploit the many air transport opportunities on the continent, it is imperative that operating costs are reduced and therefore Governments, airports and air navigation service providers have to charge more realistic prices for their services to allow the aviation industry to grow and widen the market base. In this regard, charges must be transparent,
Dr. Elijah Chingosho AFRAA Secretary General
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contents
No. 14 Aug-Oct 2011
AFRICAN AIRLINES ASSOCIATION
A F R A A ’ S PA N A F R I C A N J O U R N A L O N A I R T R A N S P O R T
4 Very High Aviation Taxes and Charges in Africa
In order to realize the huge potential existing in the continent, all stakeholders need to work together to reduce the cost of travel.
8 D.R. Congo Must Take its Safety Responsibilities Seriously Authorities should have zero tolerance to unsafe operations. Publishers:
Camerapix Publishers International Limited
Editorial Director:
Rukhsana Haq
Managing Editor:
Raphael Kuuchi
Copy Editor: Senior Designer: French Translation: Production /Advertising:
Roger Barnard Sam Kimani Ephrem Kamanzi Azra Chaudhry (UK) Rose Judha (Kenya)
Africa Wings is published quarterly for Afraa by Camerapix Magazines Limited Correspondence on editorial and advertising matters may be sent to either of these addresses: Editorial and Advertising Offices: Camerapix Magazines Ltd. PO Box 45048, 00100 GPO Nairobi, Kenya Telephone: +254 (20) 4448923/4/5 Fax: +254 (20) 4448818 or 4441021 E-mail: creative@camerapix.co.ke Camerapix Magazines (UK) Limited 32 Friars Walk, Southgate, London, N14 5LP Tel: +44 (20) 8361 2942, Mobile: +44 79411 21458 E-mail: camerapixuk@btinternet.com
10 RwandAir Dares to Dream
If dreams can come true, then RwandAir might just be in for a bright awakening.
13 AFRAA Diary 17 Capturing Revenue from Consumer Surplus
Its no secret to any airline: The key to profitability is cutting costs while enhancing revenue.
19 News Briefs 22 Rebirth of a Legend South African Airways
It is no surprise that SAA have been voted such prestigious awards as ‘Best Airline to Africa’.
4
17
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Printed in Nairobi, Kenya. ©2011 CAMERAPIX MAGAZINES LTD All rights reserved. No part of this magazine may be reproduced by any means without permission in writing from the publisher.
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Very High Aviation Taxes and Charges in Africa By Tewodros Tamrat, Director of Government, Corporate & Industry Affairs, AFRAA In order to realize the huge potential existing in the continent, all stakeholders need to work together to reduce the cost of travel.
F
aced with fierce competition from within and outside the
little opportunity for a meaningful participation of carriers in the
continent and airline owners and investors demanding more
process of determining the level of taxes and charges.
and more reasonable return on their investment, managing
and reducing costs and improving efficiency have become critical to
It is not unusual in most African countries that not only airports are
the survival and sustainability of African carriers. On the other hand
monopolies but also aircraft fuel is supplied by single supplier. The
African national carriers can no longer rely on the support of their
absence of adequate regulatory oversight over monopoly service
governments alone to ensure their survival and sustainability.
providers in many countries have compounded the problem leading
Unfortunately, in many of the important areas of cost, African airlines
to unjustifiably high costs to the air carriers and passengers. In
have either no control or have very little influence. This is because
addition the perception of high risk of the continent has given
some of these costs, like air transport related taxes and charges, are
insurance companies and airlines financiers a reason to impose
imposed by governments or monopoly service providers which allow
significantly higher fees.
August-October 2011
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economics
High Taxes and Charges Despite the critical role that air transport plays and its significant contribution to the economies of African countries, governments’ policy makers continue to view air transport as a luxury service for the elite. As a result, many African governments have tended to burden airlines and airlines users with high taxes and charges. This is so despite the fact that airlines across the continent are in critical financial crisis and struggling for survival. It is generally true that taxes and charges are relatively high on the African continent, in comparison to other regions and relative to the quality and availability of services and facilities. Figures 1 and 2 show the various passenger related taxes and charges that are applicable at some African airports. Attempt is made to compare these taxes and charges among African destinations with taxes and charges at airports in certain selected countries outside Africa.
Figure 1: Passenger Taxes and Charges (US$) at 36 African Airports, Highest to Lowest No Airport
Int
Reg1
No
Airport
Int.
Reg2 No Airport
Int.
Reg3
1
Ambouli (Dijibouti)
85.89
68.71
13
Entebbe
40.00
20.00 25 Durban
26.18
19.82
2
Accra
75.00
50.00
14
Kinshasa
30.46
30.46 26 Conakry
30.00
25.00
3
Malabo
68.02
46.86
15
Dakar
38.84
38.84 27 Johannesburg
26.18
19.82
4
Abidjan
64.73
25.89
16
Lagos
35.00
35.00 28 Antananarivo
25.84
25.84
5
Ouagadougou
58.24
38.83
17
Harare
35.00
35.00 29 Bujumbura
25.00
25.00
6
Moroni-Hahaya
52.89
11.50
18
Bamako
32.37
32.37 30 Addis Ababa
25.00
25.00
7
Mahe Seychelles
50.00
50.00
19
Monrovia
30.00
30.00
25.00
25.00
8
Windhoek
48.17
24.57
20
Maputo
30.00
30.00 32 Cotonou
23.74
14.03
9
Bangui
43.17
21.59
21
Kigali
30.00
30.00 33 YaoundĂŠ
22.66
12.95
43.14
21.57
22
Dar es Salaam
30.00
30.00 34 Douala
22.65
12.94
40.00
40.00
23
Brazzaville
26.43
26.43 35 Saint Denis
22.41
15.88
40.00
40.00
24
Cape Town
26.18
19.82 36 Niamey
21.58
21.58
10 Libreville 11
Nairobi
12 Freetown
31
Lusaka
IATA Airport, ATC and Fuel Charges Monitor. (Footnotes) 1, 2, 3 Regional (Reg.) passengers means depending on the country a passenger who is travelling either within the continent or Sub-regional Economic Community.
International Passengers departing from 13 African Airports are charged between US$ 40 to US$ 85. Included in this group are major destinations such as Accra, Abidjan, Ouagadougou, Nairobi and Entebbe. Djibouti has the highest charges at US$ 89 per passenger (departing and arriving). At another 9 airports passengers are charged US$ 30 to US$40. These include Dakar (US$ 38.84), Lagos and Harare (US$ 35), Maputo, Kigali and Dar es Salaam (US$ 30). On the other hand Addis Ababa and Johannesburg, passengers are charged US$ 25 and US$ 26 respectively (At some destinations a different rate is indicated for regional passengers that are generally lower than for international passengers). Though these numbers are telling one cannot conclude based on the numbers alone whether they are justified or not. However, it is also difficult to easily discern any logical correlation between the level of charges on one hand and the level of services, facilities and infrastructure available at some of the destinations that justify such high level of charges. To see how African airports stand in comparison to other regions below (figure 2) shows taxes and charges at selected destinations in the various sub-regions against a selected airports outside Africa. Four countries from each of the four African sub-regions are taken and compared with countries selected from 3 other regions (Middle East, Asia/Pacific and Europe). With the exception of North African countries the majority of selected African airports charge passengers significantly higher than the selected airports in the other regions.
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economics
Figure 2: Passenger Tax and Charge Comparison at Selected Airports Southern Africa
West Africa
Airport
Tax/ Charge
Airport
Luanda
20.00
Maputo
East Africa
North Africa
Tax/ Charge
Airport
Tax/ Charge
Kinshasa
30.46
Addis Ababa
25.00
Cairo
15.00
30.00
Accra
75.00
Nairobi
40.00
Tripoli
04.89
Johannesburg
26.18
Lagos
35.00
Kigali
30.00
Casablanca
15.18
Lusaka
25.00
Dakar
38.84
Entebbe
40.00
Khartoum
12.54
Middle East
Tax/ Charge
Airport
Asia/Pacific
Europe
Airport
Tax/Charge
Airport
Tax/Charge
Muscat
13.20
Mumbai
05.70
Dubai
20.42
Singapore
Beirut
34.00
Guangzhou
Airport
Tax/Charge
Paris – Charles de Gaulle
13.53
11.16
Frankfurt
29.81
10.72
Roma Fiumicino
10.95
The figures above are based on figures from the IATA Airport, ATC and Fuel Charges Monitor.
Airports in West African region have highest charges, with Accra Akwaaba International Airport topping the list with US$ 75 per passenger followed by Entebbe and Nairobi with US$ 40 closely followed by Dakar and Lagos at US$ 39 and US$ 35 respectively. Passengers in North African airports enjoy the lowest passenger taxes with Tripoli charging US$ 5 followed by Khartoum, Casablanca and Cairo (US $ 12-15). However, generally passengers departing from the selected African airports pay higher than passengers departing from Middle East and selected European airports, Beirut being the exception.
Effects of Taxes, Charges and Fees on Ticket Cost Whatever the type of charges and fees, whether they are directly collected from the passenger or the airline, it all adds up to the cost of travel which ultimately will be borne by the passenger as the airline will pass on these charges to the passengers as cost of ticket. Airlines may use different methods to allocate various costs to ticket prices on various routes, however in the end it will be passed on to the travelling passengers.
Conclusions African airlines need to engage with airports and other relevant organizations and authorities to address the issue of high taxes and charges with the view to understand the reasons and where necessary to get them to reduce these charges. This has to be collaborative effort among all stakeholders. What is clear is that with the current cost structure African carriers will find it very difficult to survive in the increasingly fierce competition and withstand the forces lined-up against them that are increasingly marginalizing them from the international routes. This is only a prelude for the continent to be completely driven out from the air transport industry including intra-African routes. It is to the common interest of all stakeholders including airports, fiscal authorities, regulators and regional continental organizations such as the AU, AFCAC, ACI Africa and AFRAA that indigenous African carriers grow and thrive in the continent and take their rightful market share. African governments and airports need to take long-term and strategic view. Many of the carriers that compete with African airlines come from an operating base with significantly low cost giving them the competitive edge. This also enables the foreign carriers to benefit significantly from the high fare in the African market which reflects the high cost of the African based carriers who are more exposed to the high cost in the continent, which is their main operational base. In order to realize the huge potential existing in the continent, all stakeholders need to work together to reduce the cost of travel so as to make it affordable to a larger sector of the African population who currently are excluded from the use of air transport because of the high fares, among other reasons.
August-October 2011
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When AOG strikes,
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AFRAA chairman awarding AIS President
AIS, a distributor of commercial aircraft spare parts and GSE, has taken the steam out of AOG (Aircraft on Ground) problems. This is because we are ideally located at the hub of the aviation industry: the JFK International Airport, New York. Rare exceptions aside, we make our AOG worldwide delivery within 24 hours.
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Mohammed Mahmoud
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D. R. Congo Must Take it's Safety Responsibilities Seriously
Authorities should have zero tolerance to unsafe operations, says AFRAA.
F
ollowing the 8 July 2011 crash that saw the loss of over 80 lives the African Airlines Association (AFRAA) expressed its concerns about the spate of accidents in the D.R. Congo. According to AFRAA, although the cause of the accident is yet to be established, this is one of many accidents that have taken place in the DRC in recent years. The aircraft involved was over 45 years old. Under normal
circumstances, the age of an aircraft should not matter as long as it is properly maintained, but in a country with poor safety oversight and shortage of adequately skilled personnel, such aircraft should never have been allowed to operate. Out of a total of four fatal accidents in Africa so far this year, three have taken place in the DRC.
Safety Requires Commitment In the view of AFRAA, once a State has the will to adopt industry best practices in safety, it can be achieved. For example, in the early 2000s, both China and Russia had poor safety records. However, these countries were determined that things had to change and within a short period, these countries attained world average safety standards. Nearer home, Nigeria used to be among the African countries with very high
PHOTO courtesy of flightstory.net
accidents rates. However, the Government
In just over six years from 2005 to 2011,
Assistance to Improve Safety is Available
the DRC has consistently recorded
To improve safety on the continent, industry
into the country for civil air transport services
accidents every year. A total of 25 fatal
stakeholders have come up with tailor-
and creating an autonomous civil aviation
accidents have occurred in that country in
made programmes, including capacity
authority with the power to carry out the
the last six years according to statistics
development assistance to States that are
necessary oversight of all civil aviation
available on the website of Flight Safety
serious about improving their safety
activities in the country. Under the visionary
Foundation, with 366 fatalities. These
oversight. ICAO and AFCAC have made
leadership of Dr. Harold Demuren, Nigerian
figures clearly show that the authorities in
available several technical assistance
civil aviation has witnessed a major
the DRC are not taking their safety
programmes to improve safety oversight
transformation in recent years.
oversight responsibility seriously. There is
capacity of countries and to help address
no indication that there are serious efforts
the issue of inadequate skilled manpower
DRC’s neighbour, Angola until 2003 used
being made to improve such a poor safety
and infrastructure. ICAO and AFCAC have
to record high accident rates but the
record.
also actively promoted the setting up of
Government of Angola took a number of
Regional Safety Oversight Organizations
important measures, including banning the
The DRC needs to appreciate that the poor
designed to facilitate regional cooperation
use of ageing aircraft from the former USSR
safety record in that country taints the
and help States such as the DRC overcome
in civil air transport services. The country has
safety record of the entire continent. What
their safety deficiencies. AFCAC has come
since witnessed a dramatic improvement of
may be viewed as a local safety problem
up with the AFI Co-operative Inspection
safety and the process of modernizing the
has implications for higher aircraft
Scheme to avail the necessary expertise to
fleet started in earnest. It is disappointing
insurance premiums for all African
assist States address some of their
that the country was rewarded by the EU
operators. In addition, they have the
manpower deficiencies. Several States
with the infamous blacklist despite such
tendency to discourage people from flying
worldwide have availed technical assistance
commendable efforts.
African airlines and thereby negatively
to African States willing to improve and
impacting the competitiveness of the world
maintain world class safety standards and it
DRC Authorities Must Act Urgently
class airlines on the continent. Regrettably,
appears that the DRC has so far not taken
The relevant authorities in the DRC have to
such accidents are being used by the EU
advantage of these assistance
act as a matter of urgency in the interests of
as a pretext to ban some African airlines to
programmes.
the whole African aviation industry by
Safety Record of the DRC
serve the commercial interests of EU carriers in Africa.
came up with a series of decisive measures including limiting the age of aircraft imported
proactively taking steps to improve safety.
August-October 2011
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Safety
The country needs to take immediate and
The DRC need not look too far for a recent
encouraged to be members of IATA/
decisive measures to rectify all the
example of such decisive and
AFRAA as a way of ensuring that they are
deficiencies identified through the ICAO
commendable actions. The Gabonese
kept updated on the latest developments
USOAP Programme. Where assistance is
Ministry of Transport recently grounded six
on safety and to access the wide range of
needed, organizations such as ICAO,
of the country’s eight airlines for failing to
human capital development and other
AFCAC, IATA and AFRAA are ready to
comply with ICAO stipulations. This is the
assistance to improve safety. African
provide support as long as the Government
kind of decisive action that will generate
governments should open up Africa to
is committed and ready to accept its safety
confidence and respect of the entire
African operators as stipulated in the
oversight responsibilities. The aviation
aviation community and will help inculcate a
Yamoussoukro Decision and allow cross
industry expects the Government to
safety culture in African aviation.
border investments in African airlines so that the carriers can grow and enjoy economies
immediately withdraw the air operators’ certificates of carriers unable or unwilling to
AFRAA Recommendations
of scale and be able to afford to put in place
adopt industry best practices in safety. In
AFRAA recommends that Governments
the required safety management systems.
fact, if only DRC and Sudan adopt ICAO
should require airlines to acquire IOSA
Authorities should have zero tolerance to
stipulated safety standards, the accident
certification before being issued air
unsafe operations.
rates of the continent would go down to
operators’ licences. Airlines should be
world average levels.
Fatal Aircraft accidents in DRC January, 2005 to July, 2011 Date
Aircraft Type
Airline
Location
No. of Fatalities
2011 1
14 Feb
Let L-410
African Air Services Commuter (Congo) Mont Biega
2
2
4 Apr
Canadair RJ100/200/ 700
United Nations - UN
Kinshasa-N’Djili Airport
32
8 Jul
Boeing 727-030 (WL)
Hewa Bora Airways
Kisangani-Bangoka International Airport
74 20
3
2010 1
25 Aug
Let 410UVP-E20C
Filair
Near Bandundu Airport
2
21 Oct
Let 410UVP
TRACEP (Cargo)
Near Bugulumisa
2
Antonov 26 (Cargo)
Service Air
Isiro – Matari Airport,
3
2009 1
26 May 2008
1
15 Apr
DC-9
Hewa Bora Airlines
Goma
40
2
01 Sept
Beechcraft 1900C
Air Services International
Bukavu
17
2007 1
4 Oct
Antonov 26
Malift Air
Kinshasa
2 29 Aug
Antonov 32
Great Lakes Business Company
Near Kongolo Airport
21 + 28 14
3 7 Sept
Antonov 12
Transvia Service
Goma Airport
8
4 17 May
Let 410
Safe Air Company
Near Walikale
3
5 21 Jun
Let 410
Karibu Airways
Kamina
1
6 24 Sept
Let 410
Free Airlines
Malemba Nkulu
1 8
2006 1 27 Apr
Convair CV-580
LAC-Sky Cargo
Amisi Airport
2 7 Jul
Antonov 12
Mango Airlines
Goma
6
3 3 Aug
Antonov 28
RACEP
Bukavu
17
4 9 Nov
Let 410
Goma Air
Near Walikale
1 3
2005 1
31 Mar
Antonov 28 (Cargo)
Gran Propeller
Near Kampene
2
5 May
Antonov 26
Kisangani Airlift
28 km N of Kisangani,
10
3
25 May
Antonov 12BP
Victoria Air
10 km from Biega,
27
4
5 Sep
Antonov 26B
Galaxy Incorporation
1.5 km from Isiro-Matari
11
5
9 Sep
Antonov 26B
Air Kasai
50 km N of Brazzaville (Congo)
13
6
21 Sep
Antonov 2 (Cargo)
Panafrican Airways
40 km W of Bukavu
2
7
4 Oct
Antonov 12
Wimbi Dira Airways
Aru Airport
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RwandAir Dares to Dream By Keith Mwanalushi.
PHOTOS courtesy of Keith Mwanalushi
If dreams can come true, then RwandAir might just be in for a bright awakening.
The first factory new 737-800 joins the RwandAir fleet on 3 August 2011.
E
very day the young national carrier of Rwanda takes off with indomitable spirit. The company dared to dream of a time of prosperity; having overcome the turbulence of the past, the airline now aspires to join the ranks of Africa’s more prosperous carriers. In 2009, RwandAir began implementing a critical five-year business plan; hence the last 18 months or so have been busy times at the airline. The first task was a rebranding exercise that led to a change in name. The airline was previously known as RwandAir Express – the dropping of 'Express' was justified by the fact that it gave the impression of a small point-to-point airline whereas its management had much bigger aspirations. “We want to position our airline as a leading carrier in the region while at the same time aggressively marketing our product overseas. Worldwide today there is massive excitement about Rwanda as a country and a destination,” said RwandAir, CEO (Chief Executive Officer) John Mirenge. Rightly so; Rwanda is generating interest from opportunity seekers and tourists after the long and painful struggle to overcome
the aftermath of political instability of the 1990s. Historically, RwandAir is linked to its predecessor Air Rwanda that was established by the government in July 1975. Air Rwanda operated to several points in the region as well as a regular Kigali-Ostend (Belgium) service using a Boeing 707. The rest of the fleet included two DHC-6 Twin Otters and a Piper Aztec. With the onset of the Rwanda genocide in 1994 the airline was forced to cease domestic operations whilst reducing its international network to include only Kigali to Bujumbura and Entebbe. Coincidentally, the airline was renamed as Rwanda Air in 1996 but this was later changed again to Alliance Express Rwanda in 1998. The change took effect after a deal was signed with Uganda-based South Africa Alliance Air that took over operations along with 49 per cent equity in the Rwandan airline. Despite the reinstatement of services to cities such as Kinshasa, Nairobi and Johannesburg after the genocide, Alliance Express Rwanda was haemorrhaging cash. The airline posted a reported U$ 4 million operating loss during the first year under the
new commercial arrangement. To add salt to injury its Ugandan shareholder, Alliance Air, shut down permanently in 2002. An agreement with South African Airways (SAA) enabled the airline to continue flying but operations remained unsustainable and services were wound up by November 2002. RwandAir Express was quickly established as a replacement and in March 2009, the airline was rebranded as RwandAir.
Striking a Balance Since operations began in 2003, the airline has operated a range of aircraft. Several lease contracts were signed over time including a 737-500 from Maersk Air, an MD-82 from Jet Africa and a Dash 8 Q200 from Trans Nation Airways of Ethiopia. RwandAir has now terminated its wet lease arrangements in favour of striking a balance between dry-lease and outright purchase. The airline has pledged that by 2013 it intends to operate and manage its own fleet. The process began in early 2010 with the arrival of two 50-seat CRJ-200s purchased from Lufthansa. The planes were quickly deployed on popular routes in East Africa.
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especially from the domestic market,” said Mirenge.
Mr. John Mirenge - CEO RwandAir
RwandAir’s affection for the 737-500 continued with the delivery of two examples (9XR –WD and 9XR-WE) from GECAS during the summer of 2010. The main focus of the fleet strategy now rests on the arrival of two ultra-efficient Boeing 737-800s. The first delivery is slated for 22 August 2011 and the second aircraft arrives in September. There is a feeling of pride at the RwandAir headquarters in Kigali as the new Boeings are being prepared for delivery. “The first stage of our fleet expansion strategy will be complete with the delivery of the new 737-800s. We have planned to use them to improve our product offering on some of our key trunk routes like Dubai and Johannesburg,” explained Mirenge. The CEO said that the new 737s join the fleet at an exciting time for the airline and the continent , both of which are experiencing growth in passenger travel. “They will become the mainstay of our fleet," he added. RwandAir passengers are the first in Africa to sample Boeing’s new signature Sky Interior cabin on the 737 model. The new jets are the first in the RwandAir fleet to be fitted with an inflight entertainment system; they will improve the on-board passenger experience, especially on the Johannesburg and Dubai routes.
Operational Strategies The airline launched its first intercontinental service from Kigali to Dubai via the Kenyan city of Mombasa in November 2010. A few months into operations and the airline reports that the route is doing well: “The response has been very optimistic,
“We also continue to receive substantial enquiries from cities like Goma and Bukavu in Eastern Democratic Republic of Congo, and also from the Kenyan coast about our Mombasa Dubai direct service. The loads are looking reasonable and forward bookings are very good. Currently we are doing three flights a week and if the current trend continues we will be considering more frequencies.” Along with the appointment of John Mirenge as the new CEO last year, the airline began a process aimed at showcasing a number of internal and external changes. Mirenge is adamant that the airline cannot afford to be left behind. He indicated that the diversification of the company’s distribution and payments system was imperative. Apart from the traditional sales offices, the website has been redesigned giving it a fresher and more sophisticated look, whilst still easy to navigate. The website will soon incorporate a new online reservation and multi-platform payments system. Regional growth is the primary focus. In March 2011, the airline kicked off the expansion drive by launching a thriceweekly service to Brazzaville in the Republic of Congo, at the same time evaluating a number of destinations west of Kigali with a view to link Central and West African cities with East Africa. Brazzaville became the 13th destination to be added to the RwandAir network, and it’s first this year. The city is home to over one-third of the Congolese population. From May 2011, the airline introduced services between Kigali and Libreville, the capital of the West Central African republic of Gabon. The thrice-weekly flights were designed to operate a triangular schedule between Kigali, Libreville and Brazzaville with full right to uplift passengers between
Libreville and Brazzaville. Carriers from Gabon and Rwanda were recently granted fifth freedom rights, a move that has been widely praised considering the slow pace of Africa’s liberalisation programme. In June the airline announced additional capacity on its key routes to Nairobi and Johannesburg effective 1 July 2011. Frequencies on the Kigali-Nairobi route have increased from twice daily to three times a day, while Johannesburg now operates four times a week. RwandAir has reported increased demand on both the Kenyan and South African routes saying it is essential to provide more options and flexibility to passengers. With the increase in demand, the 737-800s come at just the right time says the airline. General Manager for commercial services, Alice Katiti, confirmed that the airline is already experiencing capacity constraints on routes such as Kilimanjaro and Dar es Salaam whose operations have now been upgraded from the 50-seat CRJ-200 to the 737-500. As a result, the two Tanzanian routes now offer a Business Class service and a fifth weekly frequency from August. Expansion within Africa will remain critical for the airline. The general commercial uprising on the continent has sparked interest in the developing markets around Africa. Further south, Zambia is expected to become the second destination served in Southern Africa – the airline recently obtained traffic rights to serve the Zambian capital but no schedules are yet available. “We still have internal workings to put together towards Lusaka,” Mirenge said. Domestic activity is also growing. RwandAir already operates nine weekly flights connecting Kigali and Kamembe – southwest of the capital. In June the airline launched its third destination this year to the domestic city of Gisenyi in the Rubavu district, coming closely on the heels of Brazzaville and Libreville. The East African aviation community is one of the more mature regions on the continent in terms of the flow of regional traffic. However the industry is adamant that this trend needs to grow, as opposed to restrictive modes of operation.
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but we will also be better placed to learn more about them and their travel needs”, he added. Late last year, the airline partnered with local mobile telephone companies in Rwanda and Burundi to provide flight schedule services by text. The airline plans to make mobile ticket sales and check-in a possibility for its customers and is currently putting up an in-house call centre facility to help it better manage inbound and outbound calls.
Rwandan government representitive James Kimonyo was hosted by Boeing Vice President, Jeff Hofgard, in celebration of the purchase.
Codeshare agreements are just one way to help stimulate that traffic flow. RwandAir is making a concerted effort to maximise the benefits generated by cooperating with other regional carriers. Another top priority will be to facilitate intercontinental growth, and a number of codeshares have been set up to this end. Two years ago a commercial deal was signed with Brussels Airlines and the RwandAir ‘WB’ code is placed on flights between Kigali and Brussels.
Path to profitability Operating an airline profitably is generally only possible a few years after operations begin – assuming the strategies required to achieve that profit have been worked out and implemented. Even a financially sound airline such as Etihad Airways (that started operations around the same time as RwandAir) has still to break even – hoping it will do so by the end of this year and report its first profit in 2012. In order to achieve profitability RwandAir is ironing out a number of critical aspects of the business. Appropriate safety accreditation has a bearing on the direct flow of international passengers. RwandAir is a member of IATA (International Air Transport Association) and has recently completed the full accreditation process to obtain the IATA Operational Safety Audit (IOSA). Human resource is another factor. The aviation sector in Rwanda has suffered from
a shortage of personnel with specialised skills such as pilots and engineers. Most of the technical employees have been expatriates. The airline is working out measures to carefully plan and make provisions for the gradual phasing-in of skilled Rwandans to man operations. This concept, albeit to a larger scale, is also taking place in the aviation industry of other regions with large expatriate numbers such as Oman and the United Arab Emirates. The airline is also investing in modern IT applications to help streamline the business. Earlier this year RwandAir partnered with SITA to begin the implementation process for the installation of new air transport IT solutions. These solutions include the SITA e-commerce platform which allows for e-ticket distribution on the RwandAir website with credit card payment facility, and the SITA Horizon Frequent Flyer system as part of the airline’s distribution and customer retention solution. Mirenge explained: “We want to make it convenient for customers to access our services by taking advantage of the reach of the Internet and emerging e-commerce applications. The SITA e-commerce platform not only provides a new booking option for customers already familiar with our airline and its services, but also helps us reach more international travellers around the world.” “The prospect of having the miles based reward program from SITA will not only help us recognise and reward our frequent flyers
The airline has just recently entered into a strategic partnership for the distribution of Amadeus products in the Rwandan market. RwandAir is the official distributor of Amadeus travel technology solutions and will help secure IT and customer support on the ground. The question of privatisation also springs up from time to time but details remain sketchy. The airline claims that it is working towards achieving an operational and financial standing in order for the government to begin the privatisation process. What is interesting about RwandAir is the feeling of overwhelming eagerness for recognition and a drive to be successful from a business perspective, as John Mirenge concluded: “Today we can confidently say that we know where we want to be and how we can get there. One of our key goals is profitability and ensuring return on investment to the shareholder.”
If dreams can come true, then RwandAir might just be in for a bright awakening.
RXR-WB is one of twoCRJ-200s purchased from Lufthansa. Photo ©Jose Carballo.
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Afraa Diary PHOTOS courtesy of AFRAA.
AFRAA Executive Committee Meet in Nairobi The Executive Committee of the African Airlines Association held its second meeting of the year on 22nd July 2011, to take stock of the performance of the Secretariat in the first half of the year and in particular, review the progress of implementation of the 3 year business plan launched in February. The meeting also appraised the progress of preparations towards the 43rd AGA scheduled to take place in Marrakech, Morocco from 20th-23rd November 2011. The Executive Committee commended the progress made by the Secretariat in implementing the 3 Year Business Plan and the achievement of most of the targets set for the first half of the year as measured by the Key Performance Indicators. The Secretariat was directed to continue the efforts to develop projects of economic value to member airlines and to consider the braindrain as an opportunity to evolve innovative ways to develop adequate numbers of qualified and competent professionals for African aviation as well as train excess for export to organizations outside the continent. The twelve member AFRAA Executive Committee is composed of Chief Executive Officers from Afriqiyah, Air Burkina, Air Ivoire, Air Mali, Air Seychelles, EgyptAir, Ethiopian Airlines, Interair SA, Kenya Airways, South African Airways, South African Express and Tunisair. The Chairman of the Committee is Eng. Hussein Massoud, Group Chairman of EgyptAir Holding while the President and host of the 2011 AFRAA AGA is Mr. Driss Benhima, Chairman of Royal Air Maroc.
Seated from left-right: Messrs B. Abderahmane (CEO, I5), D. Tokoph, (Chairman, D6), H. Massoud (Group Chairman MS), E. Chingosho (SG, AFRAA), Dr. T. Naikuni (MD & CEO, KQ) A. M. Phiri (Representing XZ) and Y. Zewoldi (Representing ET).
Lam Mozambique Ceo at Afraa The CEO of LAM Mozambique Airlines Dr. (Mrs.) Marlene Manave paid a visit to AFRAA headquarters on 22 June 2011 accompanied by Mr. Javed Rahmat, the airline’s Advisor. The purpose of the visit was to share views and ideas on current industry developments and the way forward. The AFRAA Secretary General, Dr. Elijah Chingosho, explained the recently launched Business Plan highlighting the areas of economic value to LAM Mozambique Airlines and emphasizing some of the cost savings and revenue enhancement projects being implemented. The CEO of LAM Mozambique Airlines informed the AFRAA team of the three year strategy of the Airline and how it intends to exploit the opportunities in the market to ensure that it remains a viable and respected carrier that continues to add immense value to the country’s economy. She also explained the efforts being made by the authorities in the country to bring Mozambique out of the EU blacklist. LAM has an enviable safety record, being IOSA as well as ISO 9000 certified and without a single accident over the past 20 years. Dr. Marlene Manave is one of three female airline CEOs in the continent, the other two being Mrs. Siza Mzimela, CEO of South African Airways and Mrs. Theo Manases, CEO of Air Namibia.
AFRAA Joint Fuel Committee Fuel costs constitute on average 30% of airlines’ operational costs worldwide. In Africa, the cost averages 40% for some airlines. Therefore, any strategy to reduce fuel costs is welcome news. AFRAA, with the support of its members, relaunched the Joint Fuel Purchase Committee on 23 June 2011 with the goal of pooling fuel volumes and buying in bulk to bring down the unit cost. The project launch was presided over by the Secretary General of AFRAA.
LAM Mozambique CEO (left) and AFRAA Secretary General Dr. Elijah Chingosho.
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AFRASCO Team Visits AFRAA
AFRAA Launches New Website
The AFRAA Secretary General together with the Director, Government, Corporate and Industry Affairs hosted three representatives from AFRASCO: Capt. Simon Searle of FDS Consulting, Mrs. Hildegard Bellingan of South African Airways and Capt. Peter Kimeria of Kenya Airways.
After evaluating the feedback by various stakeholders and to keep up with modern communication trends, AFRAA launched a new website in June 2011. The website is now easier to navigate and contains new features. In keeping with the latest trends, you can
They discussed collaboration between the two organisations and joint initiatives to improve aviation safety in Africa. The two organisations agreed to: • Complement each other’s efforts and programmes to enhance Safety • reciprocal participation in Annual General Meetings and other industry conferences • collaboration with ICAO, IATA, AFCAC, ACI and other bodies working to enhance safety and develop modalities to assist and support airlines preparing for IOSA audits.
now follow AFRAA on Twitter and Facebook and be updated on airline industry in Africa. The increasingly popular AFRAA website (www.afraa.org) also provides excellent marketing opportunities for organisations.
PAPU Management Pay Working Visit to AFRAA The Secretary General of the Pan African Postal Union (PAPU), Mrs. Rodah Masaviru, accompanied by two officers, paid a working visit to AFRAA to discuss the strengthening of existing working relations between postal corporations and African airlines. They were received by the Secretary General of AFRAA, Dr. Elijah Chingosho. The two organisations discussed the cooperation agreement signed in 1995 and agreed to review the agreement to make it relevant to the current realities. The two organisations also resolved to resume active collaboration in mail shipment and hub inspections among others. AFRASCO and AFRAA team at the AFRAA headquarters.
AFRAA Hosts Simplifying Interline Settlement (SIS) Workshop As part of AFRAA’s ongoing contribution to the Simplified Interline Settlement (SIS) project, AFRAA hosted the 'Africa SIS Awareness Workshop' in Nairobi in May 2011. The workshop was facilitated by experts from IATA and was attended by 70 delegates from 25 Airlines including 15 AFRAA members. Two AFRAA partners, Hahn Air and Travel Port, together with AFRAA sponsored the workshop which was held at the Panari hotel.
AFRAA was invited to participate in the PAPU meeting in July to discuss mail shipment and payment of overdue debts owed to some African airlines. The two organisations also agreed to conduct relevant joint training in airport mail handling and dispatch. Following the meeting, AFRAA wrote to airlines requesting details of outstanding payments relating
Opening the workshop, the Secretary General of AFRAA, Dr. Elijah Chingosho emphasized the need for African Airlines to adapt modern cost effective technology in order to remain competitive and relevant. He reassured the Airlines that AFRAA would continue to provide all the necessary support and work closely with IATA for the growth and development of the industry in Africa.
to mail shipment. These were presented to PAPU at its 30th Ordinary Session of Administrative Council held in Addis Ababa for settlement by the defaulting postal corporations.
Delegates at the Africa SIS Awareness Workshop at the Panari Hotel. PHOTO © AFRAA.
PAPU and AFRAA Secretary Generals with Directors at the AFRAA Headquarters.
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New CEO Appointments
Mr. Mohamed Salah Boultif Air Algerie
Mrs. Marlene Manave LAM Mozambique
Mr. Hughes Ratsiferana Air Madagascar
Mr. Sergio Rosa Air Burkina
Mr. Thamri Mohamed Tunisair
The following are newly appointed CEOs of some African Airlines since our last publication in May 2011. • Mrs. Marlene Manave has been appointed as CEO of LAM Mozambique. She replaces Mr. Jose Ricardo Viegas. • Mr. Sergio Rosa has been appointed CEO of Air Burkina. He replaces Mr. Mohammed Ghelala. • Mr. Mohamed Salah Boultif has been appointed as the new CEO of Air Algerie. He replaces Mr. Abdelwahid Bouabdallah. • Mr. Hughes Ratsiferana is the new CEO of Air Madagascar. He replaces Mr. Fidy Rakotonirina. • Mr. Thamri Mohamed replaces Mr. Nabil Chettaoui as the new CEO of Tunisair. Africa Wings would like to welcome the new CEOs to their new positions and wish them well in their endeavours. We would also like to thank the former CEOs of these airlines for their support of their airlines and the industry as a whole during their tenure and wish them well.
Afraa/Afcac/Iata Hold a Regulatory Forum in Nairobi AFRAA hosted a successful Regulatory Affairs Seminar in collaboration with AFCAC and IATA in Nairobi on 21 June 2011. This, the 4th Regulatory Seminar jointly held by AFRAA and IATA, was attended by stakeholders from Civil Aviation Authorities, airports and airlines. The forum was officially opened by the AFRAA Secretary General, Dr. Elijah Chingosho and IATA Regional Vice President from Africa, Mr. Mike Higgins.
Delegates at the joint Regulatory Forum pose at the `Red Court Hotel. Photo © AFRAA.
The workshop highlighted the close collaboration between AFRAA, IATA and AFCAC in ensuring that African aviation stakeholders are updated with the latest regulatory developments affecting the aviation industry.
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AFRAA Attracts More Partners Seven aviation-related service providers have joined the AFRAA Partnership Programme since the beginning of the year. The new partners are: Photo © Travel-Images.com
Ceiba Intercontinental Joins AFRAA Ceiba Intercontinental Airlines of Equatorial Guinea was recently approved by the Executive Committee of AFRAA to join the Association. The Malabo based airline is the national carrier of Equatorial Guinea and operates both domestic and regional routes with a fleet of four ATRs.
AFRAA Annual General Assembly The 43rd African Airlines Association (AFRAA) Annual General Assembly and conference will be held in Marrakech, Kingdom of Morocco from 20-22 November 2011 under the patronage of Royal Air Maroc. The conference will be under the theme, “Harnessing the Growth Opportunities Together” and will bring together many African Airline CEOs and key decision makers. In addition to statutory issues to be discussed by the Assembly, there will be a high level CEO’s Forum that will debate topical industry issues and chart strategies for the future. The conference will also feature two panel discussions and presentations by renowned experts and consultants as well as exhibition of some of the latest technology applications and products in the industry. As part of the package for all delegates who will be attending, Royal Air Maroc is granting air ticket discounts of up to 70% in Economy and 50% in First and Business Class on its entire network. Hotel accommodation is also highly subsidized.
Atlantic Air Industries Maroc AWAS CHAMP Cargo Systems Pratt & Whitney Servair Innovata Hytena Aeronautics
The AFRAA partnership programme is open to all aviation related non-Airline companies that have an interest in contributing and supporting the growth and development of African aviation. Current members include aircraft and engine manufacturers, spare parts and components suppliers, ICT equipment and solutions providers, product distribution and data firms as well as leasing organisations, MROs and consultancy firms. There are 22 companies on the partnership programme including: Amadeus, AWAS, Atlantic Air Industries, American General Supplies, ATPCO, Boeing, CFM International, CHAMP Cargosystems, Embraer, GE Aviation, Hahn Air, Hytena Aeronautics, Kenyon International, Lufthansa Consulting, Lufthansa Systems, Pratt & Whitney, Rolls-Royce, Sabre Airline Solutions, Seabury APG, Servair, SITA and Travelport.
ADVERTISE TO AFRICA WINGS Africa Wings is a Pan-African journal on air transport. It is dedicated to the dissemination of reliable and accurate African aviation industry developments and communicating the African Airlines Association’s (AFRAA) positions and views on topical global air transport issues that affect the African aviation market. Published quarterly for AFRAA by Camerapix Magazine Limited, it is circulated widely to airlines, industry partners, aviation service providers, airports, civil aviation authorities, regional and sub-regional air transport bodies, universities, research institutions, travel agents, tour operators, hotels among others. Africa wings is in its fourth year of publication. To advertise, subscribe or get further information on the journal, please contact: Editorial and Advertising Office: Camerapix Magazines Ltd. PO Box 45048, 00100 GPO Nairobi, Kenya Tel: +254 (20) 4448923/4/5. Fax: +254 (20) 4448818 or 44410219 E-mail: customercare@camerapix.co.ke
The Commercial Director: African Airlines Association PO Box 20116, 00200 Nairobi, Kenya Tel: +254 (20) 604855, Fax: +254 (20) 601173 Email: rkuuchi@afraa.org
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Capturing Revenue from Consumer Surplus By Ingo Roessler, Director Business Development, Optiontown.
Its no secret to any airline: The key to profitability is cutting costs while enhancing revenue.
time of purchase, sometimes months before a flight. When Economy-class customers search for a flight, they are highly price sensitive and will often choose one airline over another because it is just slightly cheaper. But after they make their purchase, something interesting happens. Sachin Goel, the founder and Chief Executive Officer of Optiontown, discovered while conducting extensive research at the MIT Center for Transportation Studies that customers have desires that can actually be fulfilled after the purchase—and can be more profitable than the low-margin Economy-class ticket itself. World-famous MIT in Cambridge, Massachusetts, has given birth to some of the airline industry’s most innovative companies, such as ITA Software, which Google recently purchased for US$ 700 million. In that tradition, Goel founded Optiontown creating dynamic travel options to match customer desires—and their willingness to pay to fulfill their desires—with airlines’ abilities to meet those desires using assets like excess business class inventory.
I
t’s no secret to any airline: The key to profitability is cutting costs while enhancing revenue. With fuel prices remaining at stubbornly high levels, the percentage of an airline’s costs that it can actually control is at historically low levels, and thus the industry—around the world and here in Africa—is becoming ever more focused on revenue. Airlines everywhere have embarked on revenue-enhancing initiatives. Some carry risks: charging for items that were once complimentary, such as checked bags and meals, can anger customers. And so successful airlines, although indeed pursuing some of those initiatives, are looking for ways to increase revenue without angering customers—and indeed, while actually delighting them. How is that possible? A relatively new field called 'postpurchase revenue management,' championed by a company called
Optiontown, is focusing on customer desires rather than just customer needs. Almost every airline practices revenue management, and in fact many African carriers have recently implemented newgeneration revenue management systems that, for example, enable origin-anddestination based revenue management, rather than more rudimentary segmentbased revenue management. But even all of these advancements focus only on customer needs.—The customer must travel during a certain timeframe and is only willing to pay a certain fare—and they stop at the
Specifically, Goel knew that almost every Economy-class customer would love an upgrade to Business Class if given the opportunity at a price he could afford. And every airline has some excess Business Class inventory and would be happy to increase its yields by selling upgrades—but only if it could guarantee that it wouldn’t cannibalize its standard Business Class pricing. In other words, it had to truly be incremental revenue. Several years of research and development led to the commercial release of Optiontown in 2009. It was a quick success. More than 10 airlines around the globe, including Arik Air, the largest airline in West Africa, have already adopted the system, which has two offerings. With the
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Upgrade Travel Option (UTo), an Economy Class customer is offered the opportunity to purchase an 'option' to upgrade to Business Class. The customer clicks through from the airline’s website to Optiontown’s site, where typically between 25 per cent and 45 per cent of customers, but sometimes as many as 80 per cent at some airlines, (depending on route network) choose to purchase these options. Successful customers receive confirmation of their upgrades before they depart. It might sound simple, but Goel says there’s a reason no airline successfully carried out such a scheme before Optiontown. “Airlines were understandably concerned about cannibalization,” Goel said. “Optiontown was the first system that could give them comfort that this was all incremental business.” He explained that Optiontown’s patented, sophisticated revenue management system integrates with an airline’s own systems to ensure that an optimal number of options are sold for a flight, using a complex array of algorithms. Repeat customers soon realize they have a reasonable enough possibility of being upgraded that it’s worth purchasing the option, but not so high a probability that it could serve as a substitute for a full-fare Business Class ticket for “traditional” premium passengers with the need and the means to confirm Business Class travel. Typical UTo customers include leisure passengers traveling for a special occasion, such as a honeymoon or wedding anniversary, as well as business travelers whose corporate travel policies may not permit confirmed Business Class travel. Optiontown’s other major offering alongside the UTo is called the Flexibility Reward Option (FRO). The concept is similar, but in this case customers actually
'sell' options to airlines. Most airlines oversell their flights in an attempt to ensure a full flight when taking into account passengers who don’t turn up. When more passengers than forecast turn up, airport staff have to quickly work to offload passengers by offering them lucrative compensation. It’s an expense and hassle for the airline and a huge inconvenience for passengers. With the FRO, passengers have the opportunity, after they have booked, to declare their flexibility to travel on alternate times/flights in exchange for compensation should they be shifted to said alternate flight. Because they are notified up to two days before departure, rather than after turning up at the airport with their bags, they are willing to accept less compensation than is necessary at the airport. In exchange for a small payment of up to $50, passengers are automatically shifted to a different flight that they’ve already confirmed is convenient for them. It all takes place without any impact on airport staff, who are free to focus on their core duties. So what’s involved in becoming a member of the Optiontown family of airlines, and what kind of results can an airline expect? Goel said that remarkably, no cash investment is required from the airline. Optiontown provides
all the patented technology, which integrates easily with reservation and revenue management systems. A new Optiontown airline partner needs nothing more than an innovative spirit and a technical staff that support the implementation process. Once the system goes 'live' airlines begin seeing incremental business from literally the first day. During a period of about six-twelve months, Optiontown continues refining its algorithms; by the end of that period, the airline can reach full optimization, whereby it is nearly eliminating 'spoilage' in the Business Class cabin while retaining all of its previous premium revenue. Airlines in every geographical region and of every business model have signed up, from Malaysia Airlines (one of only seven Skytrax 'five-star airlines' in the world) to its neighbour and competitor AirAsia X, which is the world’s lowest-cost carrier. The chase for revenue isn’t likely to ever subside, and most airlines will pursue it using a variety of initiatives. Optiontown can be a powerful weapon in a revenue-generation arsenal; one that creates a true win-win between the airlines (increase profitability without any cash investments) and the customers (enhance travel utility).
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news briefs
News Briefs PHOTOS courtesy of AFRAA.
TAAG Angola Launch Luanda-Porto Route TAAG Angola Airlines in July launched direct twice-weekly flights between Luanda and Porto in Portugal. Meanwhile, TAAG has taken delivery of its first 777-300ER, which is the first 777-300ER purchased, owned and operated by an African airline. The aircraft delivered on 14 June 2011 is the first of two 777-300ERs ordered by the airline in October 2009. TAAG Angola Airlines will use the aircraft for route expansion to destinations such as Rio de Janeiro, Sao Paulo, Lisbon and Porto. The airline is also preparing its application to fly into the United States with its new 777-300ERs. TAAG currently flies 777-200ERs from Luanda to Lisbon, Beijing, Dubai, Sao Paulo and Rio de Janeiro.
Air Nigeria, Delta Sign Codeshare Pact on US Route Air Nigeria and Delta Airlines recently signed a codeshare agreement that will facilitate the seamless movement of passengers from the Murtala Muhammed International Airport, Ikeja, Lagos and Nnamdi Azikiwe International Airport, Abuja, to Atlanta and New York. The two airlines are also planning to start a reciprocal frequent flyer agreement that allows customers from Delta's SkyMiles and Air Nigeria’s eagleflier® programmes to earn and redeem miles for flights. Speaking at the signing, the CEO of Air Nigeria, Mr. Kinfe Kahssaye said, “This codeshare arrangement is strategically important for Air Nigeria as it complements the objective of the airline to provide seamless service for passengers flying between West Africa and the U.S.A”. He further noted that “the cooperation will also pave the way for Nigeria to be the gateway between Africa and USA and further develop trade and tourism between USA and Africa”. Air Nigeria has a strong domestic and regional presence in the West and Central African region.
SAA Expands in Africa South African Airways (SAA) is planning to introduce flights to several African countries as part of its route expansion plans. According to the Chief Executive Officer, Ms. Siza Mzimela, “SAA plans to grow its routes as well as improve its infrastructure.”
The Airline will start flights to Abuja in Nigeria, Madagascar, the Republic of Congo and Burundi, whilst also growing in South America, Asia and India. The CEO added that, “We are beginning to see open skies and we want to understand how this will impact on us and also the opportunities it will bring. But also important is opening up Africa for Africans that has been lacking. The focus on the continent is important.” Meanwhile, SAA on 15th May 2011, started non-stop round-trip flights between Johannesburg and New York which reduces travel time by 90 minutes. The airline also plans to commence direct services to Beijing from 1 September 2011.
Kenya Airways Launch Carbon Offset Programme Through a unique initiative developed in cooperation with IATA, Kenya Airways now offers its passengers the opportunity to voluntarily participate directly in offsetting the carbon dioxide (CO2) emissions related to their flights. The programme is based on a 'Carbon Calculator Tool' built into the airline’s online ticket booking process. Passengers can choose to pay an additional amount applied per person to offset carbon emissions related to their specific flight. Speaking during the official launch of the programme, KQ Group Managing Director and CEO, Dr. Titus Naikuni said, “This is an exciting development for Kenya Airways, because it shows the commitment that we have to environmental sustainability. What is even more interesting is that we are giving our customers an opportunity to walk on this environmental conservation journey together with us.” Fees collected through this programme will be used to support projects that have been qualified by IATA and certified by the United Nations Environment Program (UNEP) as being credible in having a positive impact on sustainability.
Precision Air to Acquire 11 Aircraft in Five Years Precision Air (PW) plans to acquire 11 more aircraft in the next five years, according to the Managing Director, Mr. Alfonse Kioko. “That is our strategic plan for the next five years…... we are confident that we will do it through buying and leasing,” he said. PW currently has a fleet of 10 aircraft, seven of which are new and delivered through a $ 129 million deal with the Francebased aircraft manufacturer ATR. The aircraft to be acquired will enable the airline to expand its operations to several new destinations. Among others, the airline plans to open new routes to: Johannesburg, Pemba, Nampula, Moroni, Lubumbashi, Lusaka, Harare and Blantyre. PW also plans to commence operations to the Middle East and later to Europe within the next three years. Additional capital for the purchase of the aircraft will come after its listing at the Dar es Salaam Stock Exchange.
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Boeing Marks Milestone Delivery to Air Algérie Boeing marked a major milestone with Air Algérie by delivering the carrier’s 50th Boeing jetliner, a 737-800, recently. The Air Algérie Boeing 737-800 was the fourth of seven 737NGs the airline ordered in 2009 and the delivery also marked a 40-year partnership between Boeing and Air Algérie.
Ethiopian Airlines Adds New Destination and Enters into Codeshare Agreement Ethiopian Airlines (ET) boosted its worldwide network to 62 destinations with the addition of five new weekly services to Milan in July. Milan becomes Ethiopian’s second destination in Italy after Rome and the seventh in Europe. In a related development, ET made its maiden flight to Hangzhou on 3 May 2011. Hangzhou is the airline’s fourth destination in China along with Beijing, Guangzhou and Hong Kong. Five flights are being operated weekly between Addis Ababa and Hangzhou in addition to the services to the other three cities in China. "This new operation to Hangzhou reinforces our commitment to the Chinese travelling public and the strong ties between China and Africa", said Mr. Tewolde GebreMariam, CEO of Ethiopian Airlines.
Until the political upheaval in Libya earlier this year, the air transport market was experiencing fast growth driven by the two major carriers in the country – Afriqiyah Airways and Libyan Airlines. As Libya continues in a state of war and turmoil and as the UN no fly-zone over the country persists, commercial aviation has emerged as one of the most serious casualties. Both Afriqiyah and Libyan Airlines have suspended operations and it is uncertain when the situation will normalize for business to resume.
Photo © Air Transport Intelligence News.
Kotoka International Airport Voted Best Airport in Africa The Kotoka International Airport in Ghana has won this year’s coveted Best Airport in Africa Award following a competitive and rigorous selection and screening process by Routes (the world air routes development body). The award was presented to the Managing Director of the Ghana Airports Company Ltd. (GACL), Mrs. Doreen OwusuFianko at the Routes Africa 2011 Conference held in Mali, Bamako from 3-5 July 2011.
Meanwhile, ET has entered into a codeshare agreement with LAM Mozambique Airlines providing customers of both carriers more flexible and convenient flight services through their respective hubs of Addis Ababa and Maputo. The agreement introduces more choices of flights for passengers from Mozambique to the vast Ethiopian global network and vice-versa. With the codeshare, ET increases the number of daily flights on the Addis AbabaMaputo route, providing more flight choices to customers of both carriers.
Air Transport Suffers Drawback in Libya
Kotoka Airport, Ghana. Photo © Ghana Airport Company.
The no-fly-zone over Libya, which includes civil aviation, is seriously threatening the country’s air transport sector which in the last couple of years had begun to recover from the embargo imposed from 1990 to 2003 by the United Nations over the Lockerbie bombing. Following the lifting of the air embargo 2003, Libya tried to redevelop its civil aviation and was positioning itself as a major air transport hub. It adopted a liberalized aviation policy in an effort to open up the country to the rest of the world and set up the state-owned airlines of Libyan Arab Airlines, Afriqiyah Airways and Al-Buraq among other aviation organisations. This policy propelled Afriqiyah Airways into a major global carrier linking the African continent to the rest of the world. Afriqiyah specialized in connecting African and European capitals and until the recent no-fly zone was imposed on Libya flew to 72 destinations across the world via Tripoli. In late 2010, Afriqiyah Airways signed an order to purchase 23 new planes of various types from Airbus. Unfortunately, the airline cannot take delivery of any of these aircraft this year due to the air blockade.
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Iata Holds its 67th Annual General Meeting IATA held its 67th Annual General Meeting (AGM) and World Air Transport Summit in Singapore from 5-7 June 2011. The participants included at least 15 African airlines. African airlines that attended met with the outgoing and incoming IATA DGs and their team on 5 June 2011. The meeting deliberated on various issues of interest to African airlines including the EU ETS Scheme, the EU blacklist of airlines, brain drain, safety and environmental issues. Among others, two CEOs of Africa’s major carriers were elected to the IATA Board of Governors. They are: Dr. Titus Naikuni, Group Managing Director and Chief Executive Officer of Kenya Airways and Mrs. Siza Mzimela, Chief Executive Officer of South African Airways. Dr. Naikuni previously served on the IATA Board between 2004 and 2009 while Mrs. Mzimela makes history as the first female airline CEO in the world to serve as an IATA Board member. Africa occupies three of the 31 seats on the IATA BoG. The other African Executive on the Board is Eng. Hussein Massoud, Group Chairman of EgyptAir. He has been on the Board since 2009. Peter Hartman, President and CEO of KLM Royal Dutch Airlines succeeds David Bronczek, CEO of FedEx Express, as Chairman of the IATA Board of Governors. Tony Tyler, former Chief Executive of Cathay Pacific, was confirmed to succeed Giovanni Bisignani as IATA’s Director General and CEO. Tyler’s appointment is effective from 1 July 2011. While the President and host of the 2011 AFRAA AGA is Mr. Driss Benhima, Chairman of Royal Air Maroc.
Air Nigeria to Recommence Intercontinental Operations In line with its route expansion plans, Air Nigeria is set to recommence daily direct flights to London Gatwick starting September 2011. The long-haul flight service is coming as the airline consolidates after the full implementation of its turn-around strategy in the last year. It has also completely reappraised its product offering on international routes. In preparation for the re-launch of the long haul flights, the airline is in the process of acquiring three Airbus A340-300 aircraft.
Dr. Titus Naikuni, Kenya Airways Managing Director and Chief Executive Officer.
Mrs. Siza Mzimela, SAA Chief Executive Officer.
From its base at the Murtala Mohammed Airport, Lagos, Air Nigeria currently operates to seven domestic and nine regional destinations with further plans to extend services to more African destinations, Europe, Asia and the Americas.
Boeing Delivers 50th Airplane to EgyptAir Boeing reached a major milestone with EgyptAir this month when it delivered the airline's 50th airplane a Next-Generation 737-800. The 737 is the 17th of 20 ordered by EgyptAir. This delivery also marked a 45-year partnership between Boeing and EgyptAir.
Photo © Air Transport Intelligence News.
"Boeing has played a pivotal role in our growth plan," said Hussein Massoud, Chairman and CEO of EgyptAir Holding Co. He added, "We are extremely satisfied with the NextGeneration 737, which has earned an excellent reputation for reliability and operational efficiency, and has the range that allows us to expand our network further into Africa, Europe and the other medium-haul destinations. Moreover, the 777-300ER is extremely popular with our customers and we see direct benefits due to the airplane's exceptional fuel efficiency, seat-mile costs and economics, in addition to the luxury and comfort of the interior cabin."
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history of wings
Rebirth of a Legend South African Airways
PHOTOS courtesy of Peter Holthusen
Story by Peter Holthusen.
In August 1950, the airline introduced four Lockheed Constellations on the Springbok Service. These sleek aircraft reduced the flying time to London to 28 hours. The Connie, as it was affectionately known, was the first pressurised airliner to be operated by SAA, enabling the aircraft to cruise above most of the African weather.
S
outh African Airways (SAA), one of the world’s oldest airlines, began flying on 1 February 1934, a mere 30 years after the Wrights Brothers’ had made their first powered flight near Kitty Hawk, North Carolina on 17 December 1903. Since its inception, SAA has utilised numerous types of aircraft, from single engine biplanes such as the de Havilland DH60G Gipsy Moth carrying just one passenger to the very largest, powered by two, three or four powerful jet engines, transporting up to several hundred passengers to the far corners of the globe. The company was established after the South African Government took over the assets and liabilities of a small private airline, Union Airways, and absorbed it into a new national airline SAA, which fell under the control of the South African Railways and Harbours Administration.
The father of civil aviation in South Africa, the indefatigable Major Allister Miller, a World War 1 flying ace, who had recruited some 2,000 South Africans for service in the Royal Air Force, founded Union Airways at Fairview in Port Elizabeth in 1929 after being awarded a government contract to fly mail between Cape Town and the major centres in South Africa. The company was registered on 24 July 1929 and began airmail operations on 26 August the same year, with five de Havilland DH60 Gipsy Moth biplanes. Mail was collected from the Union Castle steamships from Britain that docked at Cape Town harbour on Monday mornings and flown to Port Elizabeth by a single Gipsy Moth. At Port Elizabeth two more Gipsy Moths were waiting to continue the service, one to fly mail to Bloemfontein and Johannesburg and the other to East London and Durban. On Thursday, 29 August the
return service was operated reaching Cape Town in time for the departing United Kingdom bound steamship. Union Airways carried its first passenger from Cape Town to East London on 3 September 1929. The airline is also credited to the carriage of the sick on mercy flights. As both mail and passenger traffic increased Miller bought a Fokker Super Universal single engine aircraft that could carry six passengers and this aircraft entered service on 29 May 1930. The next aircraft type to enter service with Union Airways were two de Havilland DH 80A Puss Moths. These aircraft could carry two passengers in an enclosed cabin and replaced some of the old Gipsy Moths that had been sold or written-off. Unfortunately, one of the Puss Moths crashed near Sir Lowry’s Pass in the Western Cape after structural failure, the pilot and both
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passengers were killed. More bad news was to follow when the Fokker Super Universal was written-off in a crash at Kayser’s Beach near East London on 31 December 1931. The three Union Airways airmen onboard at the time were not injured. The Imperial Airways Company of Britain began operating a scheduled service from England to South Africa on 20 February 1932, at first only mail was carried, but the competition increased when they later carried passengers on a flight that took 11 days. Union Airways was struggling to make ends meet and little help was forthcoming from the South African Government. Junkers South Africa Pty (Ltd) who owned and operated South West African (SWA) Airways, bought a substantial share in Union Airways. An all-metal Junkers F13 was chartered from SWA Airways and was soon operating in place of the wrecked Fokker. More Junkers aircraft followed in the form of F13 and W34 aircraft and later a Junkers A50 also joined the fleet. Imperial’s airmail service from England to Cape Town was routed via Rand Airport and Kimberley and this made the Union Airways airmail service from Cape Town to Johannesburg unnecessary. The carriage of airmail from Durban to Johannesburg and Durban to Cape Town was contracted to Union Airways. Passenger growth on the Durban to Johannesburg service grew steadily culminating in a daily flight. This compelled the airline to move their base from Port Elizabeth to Durban. Major Miller also placed an order for three Junkers Ju 52/3m aircraft; an all-metal airliner with three engines which could carry up to 18 passengers.
The 'First Lady the Skies'byseen here in the landing configuration on Engineered andofdesigned the famous British novelist and aeronautical engineer, Nevil Shute, the to New York's JFKan International Airport.Four were used by SAA on routes to Port Elizabeth the approach Airspeed AS.6J Envoy was exquisite aircraft. and South West Africa until they were transferred to the South African Air Force in 1938.
However, the final nail in Union Airways coffin came when one of the Junkers W34 aircraft crashed in bad weather near the town of Eshowe in Zululand in 1933, two crew and three passengers were killed, one passenger survived. This was a major blow to the airline and forced Miller to approach the South African Government to take over the operation, who subsequently agreed. This included 40 staff members and three Junkers F13s, one DH60 Gipsy Moth, one DH 80A Puss Moth and a leased Junkers F13 and A50.
proved to a cautious and sceptical public that air travel was safe, fast and here to stay.
South African Airways honoured the order for the three Junkers Ju 52/3m aircraft, which were delivered in October 1934 and went into service 10 days later. This was the beginning of the now legendary airline we know as South African Airways.
It soon became apparent to SAA that Johannesburg would become the hub of air travel in South Africa and the airline moved to Rand Airport on 1 July 1935. On the same day, SAA began operating a Rand-Durban-East London-Port Elizabeth-Cape Town in oneday service. From July 1935, a weekly RandKimberley-Beaufort West-Cape Town service was introduced, setting record flying times. In April 1936, SAA took over the Rand-Cape Town service from Imperial Airways. A fourth Ju 52/3m aircraft was soon added to the fleet.
The aircraft were configured to carry 14 passengers and a crew of four. The speed, comfort and reliability of the Ju 52/3m aircraft
SAA was always ahead of its time, for on 1 October 1960, the airline introduced the Boeing 707 on the Springbok Service to the UK. This reduced the journey to an actual flying time of around 13 hours.
SAA started operating three services per week between Durban and Johannesburg and a weekly service from Durban-East London-Port Elizabeth, with an overnight stop at George or Mossel Bay, and (depending on the weather) – Cape Town. On 1 February 1935, SAA took over South West African Airways at a purchase price of £1. In the process inheriting its aircraft and some of its staff.
SAA wasted no time in placing orders for more aircraft: 10 Ju 52/3m, 18 Junkers Ju 86 and seven Airspeed AS.6J Envoys. Four of the Envoys were for SAA and three for the South African Air Force. War clouds were looming in Europe and all the aircraft that were ordered could be transferred to the Air Force in time of war and the Junkers Ju 52/3m were to be used for carrying troops and the Envoys and Ju 86s for conversion into bombers. When deliveries of the new aircraft began, the three older Ju 52/3m airliners were sold, as were most of the older single-engine aircraft, this was a time of rapid expansion for the airline.
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was named Palmietfontein and was situated south of Rand Airport. The newly-formed British Overseas Airways Corporation (BOAC) planned to operate their service with Avro York aircraft; some of which were leased to SAA to operate the reciprocal service. The York was an ungainly looking aircraft. Its four engines were fitted to its high wing, the tail had three fins and the body was square and slab sided. It carried 12 passengers and had six crew members. Its ancestry came from the Lancaster bomber. The first of SAA's eight Boeing 747-400 series aircraft arrived in January 1991. The most distinguishing feature of this version of the 747 is the upturned 'winglets' on the end of the wings, which have become commonplace on modern wide-body airliners.
New routes were opened flying from RandBloemfontein-Port Elizabeth, Rand-KimberleyUpington-Keetmanshoop-Windhoek, Cape Town-Kimberley-Windhoek. Flights between the major centres were also increased. During the Junkers delivery period, SAA was short of aircraft to service all the new and proposed routes, and the three SAAF Envoys were converted to passenger layout and used to supplement the fleet. When the Junkers Ju 86 aircraft were delivered, all the Envoys (including the four from SAA) were returned to the SAAF, as the aircraft proved unsuitable for the SAA passenger and cargo services. In June 1937, Imperial Airways began using flying boats on its South African service with the service terminating in Durban. SAA began operating its first regional service to Lusaka with stops at Pietersburg, Bulawayo and Livingstone. In July, the service was extended to Kisumu on Lake Victoria, taking over the Imperial Airways land-plane service. The SAA service was extended from Livingstone and stopped at Broken Hill-M’Pika-MbeyaDodoma-Moshi-Nairobi-Kisumu. The Imperial Airways flying boat service also stopped at Kisumu, where airmail bags and passengers to or from SAA aircraft were transferred. The next regional service was to Lourenço Marques (Maputo), where airmail also destined for Imperial flying boats was transferred. A service from Rand-Palapye Road-Maun (later replaced by Gobabis)-Windhoek was also introduced. Shortly before the war this service was extended up to Luanda. Following the outbreak of war, SAA ordered Lockheed Lodestar aircraft from the United States of America. These twin-engine airliners were delivered during the hostilities and only the
survivors saw service with SAA towards the end and after the war. After war broke out, all SAA staff and aircraft were transferred to the SAAF. During the early part of the conflict some Ju 52/3m’s operated limited services around the country. In the period from the start of the airline to the cessation of operations at the war’s beginning, 118,822 passengers, 3,278 tonnes of airmail and 248 tonnes of cargo were carried; the number of staff employed had risen to 418. Six Lodestar aircraft and staff were released from the SAAF to operate limited services for the airline from 1 December 1944. Twenty-six services a week were operated to the main centres and Bulawayo. As more Lodestars were released, services were increased. The remaining Lodestars were released after the war, a total of 19 survived. During the conflict, new airports were planned for Durban, Cape Town and an international airport at Johannesburg. The construction of the airport at Johannesburg would take several years to complete. The name of the airport was to be Highveld, but with Field Marshal Montgomery performing the naming ceremony in December 1947, it was decided to name it Jan Smuts Airport. In the 1940s, SAA house colours were a blue cheat line over an aluminium skin, the early SAA logo and a blue stripe over the fin and rudder. The airline used the motto of ‘The Blue and Silver Fleet’. Rand Airport’s runways were too short and a temporary airport was built to accommodate the envisaged service to Britain. The airport
SAA’s first intercontinental service, known as the Springbok Service, started on 10 November 1945, the service routed PalmietfonteinNairobi-Khartoum-Cairo-Castel Benito-Hurn Bournemouth, (Heathrow had not yet opened). The flight took three days to complete and overnight stops were made at Nairobi and Cairo, with the flying time around 33 to 34 hours. At first, a weekly service was operated, and as the demand for seats increased, more services were introduced until finally six services per week were flown. Douglas DC-4 Skymaster aircraft entered service on 1 May 1946 on the Johannesburg-Cape Town route, with the Douglas DC-3 Dakota entering service on the same day on the Johannesburg-Durban route. The Dakotas came from the surplus SAAF Douglas C-47 inventory; and were converted into passenger airliners by SAA. From 1946, the airline experienced a massive growth of aircraft, passengers, cargo and staff. When more Skymasters entered service, the Avro Yorks were returned to BOAC. Air Hostesses were first introduced in September 1946. At first, they only flew on the internal services and were later used on the Springbok Service. At the end of 1946, the first of two de Havilland DH 104 Dove aircraft entered service. These aircraft were used to operate a feeder service and for crew training. They were not suited to SAA’s operation and both were finally sold in the early 1950s. The next type to be introduced by SAA was the Vickers Viking, a 28 seater airliner used on both internal and regional services. Their service life with SAA was fairly short and all were sold to British European Airways (BEA): by 1951 all had left South Africa. In August 1950, the airline introduced four Lockheed Constellations on the Springbok Service. These sleek aircraft reduced the flying time to London to 28 hours. The Connie, as
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white and blue. The new livery was based upon the rainbow colours of the new national flag, with a sun. The airline’s name on its aircraft was also changed to ‘South African’, with the Afrikaans name Suid-Afrikaanse Lugdiens dropped. In November 1999, SAir Group the holding company of Swissair – bought a 20 per cent share in SAA for R1.4 billion. In July 2000, the first Boeing 737-800 ‘New Generation’ was delivered. Twenty-one of the type were ordered to replace both the Airbus A300 and A320 aircraft. By March 2002, all of SAA’s Airbus aircraft had left South African skies. In November 2001, Transnet bought back ailing SAir Group’s share in SAA.
In February 2010, the South African Airways (SAA) appointed Mrs. Siza Mzimela as its first female CEO.
it was affectionately known, was the first pressurised airliner to be operated by SAA, enabling the aircraft to cruise above most of the fearsome African weather. South Africa was the destination of the world’s first passenger jet service when a BOAC Comet 1 landed at Palmietfontein on 3 May 1952. The journey had taken just under 24 hours to complete. Although the Comet had a high cruising speed, it did not have a good range, and time was lost on the five refuelling stops on its route. SAA entered into the jet age using two chartered Comets from BOAC; the first service was operated from London to Johannesburg on 4 October 1953. SAA was always ahead of its time, for on 1 October 1960, the airline introduced the Boeing 707 on the Springbok Service to the United Kingdom. This reduced the journey to an actual flying time of around 13 hours. The 707 also brought in the new airline colours, the main difference being the orange tail with a blue and white flash. On 23 February 1969, the 707 also inaugurated the long-awaited service to the Americas, flying from Johannesburg to Rio de Janeiro to New York. The 1960s saw great expansion of the airline; faster aircraft could carry more passengers further. In 1965, Boeing 727 jetliners were introduced on regional and internal services, and in 1968 Boeing 737 airliners were introduced to supplement the 727 fleet. On 6 November 1971, the Boeing 747 ZSSAN Lebombo arrived at Johannesburg on its delivery flight. The huge wide-body
airliner attracted the nickname of Jumbo Jet and Lebombo was the first of 30 B747s to be operated by the airline, heralding a new era of air travel. In 1976, the Boeing 747 SP aircraft were introduced and to demonstrate its very long-range capability the first aircraft was flown non-stop from the Boeing Company factory in Seattle to Cape Town. In 1980, a new service to Taipei, Taiwan was introduced using the B 747 SP airliners and at the same time the stop at Seychelles was dropped in favour of Mauritius on the lucrative Hong Kong service. Due to sanctions against the Apartheid system in South Africa, most industries suffered from global isolation, including SAA, who were forced to lease or sell some of its aircraft to Canada, Mauritius, Brazil and Morocco. However, as sanctions were eased in 1991, SAA was allowed to fly over the east coast of Africa and the airline began taking delivery of Airbus A320 aircraft for use on the internal and regional services. The first of three Boeing 767 wide-body twinjets were delivered to SAA in August 1993; the smaller wide-body airliner was used to fly to the Middle East, Africa and southern European destinations. SAA operated the type for 10 years. Towards the turn of the millennium, fairly rapid growth was experienced, particularly on services to Africa, as well as modernisation of the long-haul fleet. An alliance was formed between SAA, South African Express and South African Airlink in February 1997. On 22 March 1997, SAA introduced its new corporate identity and livery, dropping the ‘springbok’ emblem, and the old national colours of orange,
SAA bought a 49 per cent share in Air Tanzania Limited in July 2002; the new outfit was launched in April 2003. In the fleet modernisation programme, Airbus A340 aircraft would replace both the B747 classic and B767 aircraft. Airbus A319 and A320 aircraft would replace the Boeing 737 and later the 737-800 airliners. The first Airbus A340-642 was delivered in January 2003. To speed up the re-equipment, A330 and A340-200 airliners were leased from European operators. The first A340-642 service was operated to Hong Kong in February 2003, replacing the B747 classic on the route. As more Airbus aircraft, such as the A340-600 and A340300E arrived, the old classics were sold, returned to the leasing companies or retired to the South African Airways Museum Society aircraft park at Rand Airport, Germiston. Further restructuring of the airline led to SAA joining the world’s largest airline alliance, Star Alliance on 10 April 2006. SAA was the first African airline to join Star Alliance, and with its entry, the alliance’s membership was raised to 18. Then in February 2010, the airline appointed Siza Mzimela as its first female CEO. Today, the airline flies to 36 destinations worldwide from its hub at O.R. Tambo International Airport in Johannesburg, using a fleet of 59 aircraft. With constant innovations such as these it is no surprise that South African Airways have been voted such prestigious awards as ‘Best Airline to Africa’ for the better part of the last two decades, and with six new A330-200s being delivered throughout 2011, the legend of SAA is set to continue.
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By the Numbers
Boeing’s 777: Bringing the World to Africa The world’s most capable airplane is now Africa’s newest airplane The world just got a little smaller for African passengers. Over the past eight months, the people of Africa saw two significant aviation milestones for the African continent – the first 777-200LR (longer-range) for an African airline and the first 777-300ER (extended range) to be owned and operated by an African airline. Boeing’s 777 'family' is the flagship in the fleets of leading airlines around the world due to its capability to bring twin-engine efficiency and reliability to the long-range market. The programme’s founders envisioned a 777 family of airplanes from day one. It includes five passenger models and a freighter, which is the newest member and entered service in February 2009 with Air France Cargo. In November 2010, Ethiopian Airlines became the first African airline to operate the world’s longest-range airplane – the Boeing 777-200LR. Then in June this year, TAAG Angola became the first African airline to own and operate the Boeing 777-300ER. Boeing’s 777-300ER and 777-200LR Worldliner are two of the longest-range airplanes in the world. Boeing developed the duo to offer airlines additional flexibility in serving airlines’ nonstop routes. The 777-200LR, with a range of 9,375 nautical miles (17,395 kilometres), nearly doubles the range of its predecessor and connects virtually any two cities in the world. It carries more passengers and more revenue cargo farther than any other jetliner. The 777-200LR also serves as the platform for the Boeing 777 Freighter, the world’s largest, most capable twin-engine freighter. The first 777 Freighter entered service in February 2009. The top-selling and largest model, the 777300ER, offers global airlines the opportunity to establish new routes with a full passenger load. Depending on the airline’s configuration, the 777-300ER can transport more than 350 passengers in a three-class configuration up to 7,930 nautical miles (14,684 kilometres). And the innovation hasn’t stopped. Boeing engineers, looking for more ways to improve
the 777, are exploring ideas that could reduce fuel burn and emissions, lower the airplane’s weight, and increase its already extremely high reliability. “Numerous studies are under way,” said Nicole Piasecki, vice president of Business Development and Strategic Integration. “We are always challenging ourselves to make the No. 1 passenger-preferred airplane even better. We intend to remain the market leader and will continue to give airlines even more ways to compete successfully.” Teams of engineers are looking at advanced aerodynamics and new materials for the wings and leveraging 787 architecture and technology into the 777’s flight deck and systems. “Our customers tell us they need to customize the interior of the 777, so we are looking at additional ways to do that,” Piasecki said. “We are investing in studies to improve passenger comfort and the cabin architecture using new materials.” Other studies focus on lowering operating costs, as well as improving the airplane’s environmental profile. “Efficient design means low fuel consumption, less noise and cleaner emissions,” she said. Improvements over the years don’t just include updates to the airplane. The production process was transformed into a moving production line over a six-year period from 2003 to 2009. Today, it takes only 49 days from start to finish to build a 777. “That’s a reduction of 24 percent…,” said Larry Loftis, 777 vice president and general manager. Other airline revenue-producing ideas such as overhead crew and flight attendant rests, mood lighting, and premium interiors help the 777 to succeed in the marketplace. With 1,233 orders from 63 customers and 942 deliveries as of June 30, the 777 remains highly regarded with airlines, passengers and pilots. “The 777 is a proven performer, delivers exceptional value and repeatedly is at the top of operator and investor polls for its revenuegenerating abilities,” said Loftis. And Boeing continues to incorporate new technology and innovations into the 777, he added, improving operating costs, airplane performance and – most important – the passenger experience.
Technology New value-added technology helps to make the world’s most technologically advanced airplane even more high-tech. Each wing has been extended by 6.5 feet (1.98 m) by adding raked wingtips to improve overall aerodynamic and fuel efficiency. The raked wingtips help reduce takeoff field length, increase climb performance and reduce fuel burn. The body, wing, empennage and nose gear of the airplanes were strengthened and new main landing gear, wheels, tyres and brakes were installed.New semi-levered landing gear permits takeoffs on shorter runways. The struts and nacelles were modified to accommodate the significantly higher-thrust engines. The airplanes are powered exclusively by the General Electric GE90-115BL engine, the world’s largest and most powerful commercial jet engine, producing 115,300 pounds (512 kn) of thrust (derated to 110,100 pounds [489 kn] on the 777-200LR). Economics The Boeing 777-200LR and 777-300ER have seat-mile costs that are 18 to 20 percent lower than the A340-500 and A340-600 models. Fuel burn is considerably lower — 21 to 22 per cent lower per seat for the longer-range 777s — when compared to the A340-500 and A340-600. For example, on a typical ultra-long-range route, such as Dubai to Los Angeles, the 777-200LR can carry 21 more passengers and 20,400 pounds (9,250 kg) of additional cargo, compared to the A340500. The twin-engine 777-200LR also consumes nearly 6,000 gallons (22,700 l) of fuel less per flight. Comfort All 777 models have the Boeing Signature Interior, the most spacious passenger cabin ever developed. With its spacious cabin, airlines operating the 777 can offer wider seats, wider aisles, more headroom and more seating flexibility. Like other members of the 777 family, both the 777-200LR and the 777-300ER offer the widest seats in all classes when compared to the A340. First-class passengers on all 777 models have 21-inch-wide (53 cm) seats, which allow passengers to enjoy the same level of comfort as on the 747. The business-class seats are 20 inches (50 cm) wide — the same width as the A340’s first-class seats. In economy class, 18.5-inch-wide (47 cm) seats — the widest in the industry — are standard compared to 18.0-inch-wide (45 cm) seats on the A340.
August-October 2011
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