Air Transport and Airport Ground Handling Services
Aviation is a key part of the economic lifeblood of South Africa, transporting people and goods across and outside the country, and stimulating economic activity, job creation, tourism and trade. Research indicates that 482,453 aircraft movements, 41.5 million passengers and 110,000 tonnes of cargo contribute approximately R50bn to South African GDP. According to the Department of Transport, South Africa has 135 licensed airports located throughout the country. In this sector, the state-owned South African company, Air Traffic and Navigation Services (ATNS), oversees 11% of the world’s airspace.
Challenging Conditions
National carrier South African Airways (SAA) is experiencing an extremely volatile and controversial period and is confronted by numerous challenges, including poor governance and maladministration. At the same time, its subsidiary, South African Express has been grounded. Added to these problems are the competition from low-cost carriers and rapidly increasing costs which include higher oil prices and high labour costs. Of concern to local players is the emergence of big players on the African continent which has had a negative impact on SAA’s role as a travel hub into Africa. African players such as EgyptAir, Ethiopian Airlines and Kenya Airways are taking market share on the continent, while international players such as Qatar Airways, Etihad and Emirates pose a more serious threat.
Report Coverage
This report focuses on the scheduled air transport industry, including passenger and cargo services, and airport ground handling services including the operation of airports, flying fields and air navigation facilities. Profiles for 35 local and international companies active in the air transport sector are provided, ranging from British Airways subsidiary, Comair Ltd t/a kulula.com to Solenta Aviation (Pty) Ltd which in January 2017 acquired a 28% stake in Fastjet plc, the parent firm of Tanzanian LCC Fastjet and its Fastjet Zimbabwe sister carrier. Also provided are profiles for seven airport operators including market leader, Airports Company South Africa SOC Ltd t/a ACSA.
Page |
1. |
INTRODUCTION |
1 |
2. |
DESCRIPTION OF THE INDUSTRY |
1 |
2.1. |
Industry Value Chain |
3 |
2.2. |
Geographic Position |
5 |
3. |
SIZE OF THE INDUSTRY |
6 |
4. |
STATE OF THE INDUSTRY |
13 |
4.1. |
Local |
13 |
4.1.1. |
Corporate Actions |
17 |
4.1.2. |
Regulations |
25 |
4.1.3. |
Enterprise Development and Social Economic Development |
28 |
4.2. |
Continental |
30 |
4.3. |
International |
33 |
5. |
INFLUENCING FACTORS |
36 |
5.1. |
White Paper on National Civil Aviation Policy (NCAP) |
36 |
5.2. |
Economic Environment |
37 |
5.3. |
Rising Operating Costs |
38 |
5.4. |
Airport Infrastructure Development |
39 |
5.5. |
Labour |
40 |
5.6. |
Technology, Research & Development (R&D) and Innovation |
43 |
5.7. |
Safety, Security and Crime |
45 |
5.8. |
Cyclicality |
46 |
5.9. |
Environmental Issues |
47 |
6. |
COMPETITION |
48 |
6.1. |
Barriers to Entry |
49 |
7. |
SWOT ANALYSIS |
51 |
8. |
OUTLOOK |
52 |
9. |
INDUSTRY ASSOCIATIONS |
52 |
10. |
REFERENCES |
54 |
10.1. |
Publications |
54 |
10.2. |
Websites |
55 |
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APPENDIX 1 |
57 |
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South African Airports, Aerodromes, Air Bases and Airfields |
57 |
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APPENDIX 2 |
59 |
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Projects and Airline Activity on the African Continent to Create Opportunities for Growth in the Air Transport Industry - September 2016 to May 2018 |
59 |
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COMPANY PROFILES - Air Transport |
67 |
|
AIR FRANCE-KLM SA |
67 |
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ALITALIA - SOCIETA AEREA ITALIANA S.P.A. |
74 |
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BRITISH AIRWAYS PLC |
76 |
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C AND G AIR CC |
81 |
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CAPITAL AIR (PTY) LTD |
83 |
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CATHAY PACIFIC AIRWAYS LTD |
85 |
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CEM AIR (PTY) LTD |
89 |
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COMAIR LTD |
91 |
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DELLARIA LEASING (PTY) LTD |
96 |
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DEUTSCHE LUFTHANSA AG |
98 |
|
EMIRATES |
108 |
|
ETIHAD AIRWAYS PJSC |
113 |
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EXECUJET AVIATION (PTY) LTD |
116 |
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FAIR AVIATION (PTY) LTD |
118 |
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FASTJET AFRICA (PTY) LTD |
120 |
|
FEDERAL AIRLINES (PTY) LTD |
121 |
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GLOBAL AVIATION OPERATIONS (PTY) LTD |
123 |
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KHUPHUKA KINGS AIRWAYS (PTY) LTD |
125 |
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MANGO AIRLINES SOC LTD |
126 |
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NAC HELICOPTERS CAPE TOWN (PTY) LTD |
128 |
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NATIONAL AIRWAYS CORPORATION (PTY) LTD |
130 |
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OWENAIR (PTY) LTD |
133 |
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QANTAS AIRWAYS LTD |
135 |
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QATAR AIRWAYS Q.C.S.C |
141 |
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S R S AVIATION (PTY) LTD |
144 |
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SA AIRLINK (PTY) LTD |
145 |
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SAFAIR OPERATIONS (PTY) LTD |
148 |
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SINGAPORE AIRLINES LTD |
150 |
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SOLENTA AVIATION (PTY) LTD |
154 |
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SOUTH AFRICAN AIRWAYS (SOC) LTD |
156 |
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SOUTH AFRICAN EXPRESS AIRWAYS (SOC) LTD |
160 |
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TURK HAVA YOLLARI AO |
163 |
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UNITED CHARTER SERVICES (PTY) LTD |
166 |
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VIRGIN ATLANTIC AIRWAYS LTD |
168 |
|
ZENITH AIR CC |
171 |
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COMPANY PROFILES - Operation of Airports, Flying Fields & Air Navigation Facilities |
173 |
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AIR TRAFFIC AND NAVIGATION SERVICES COMPANY LTD |
173 |
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AIRPORTS COMPANY SOUTH AFRICA SOC LTD |
176 |
|
BIDAIR SERVICES (PTY) LTD |
181 |
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LANSERIA INTERNATIONAL AIRPORT (PTY) LTD |
184 |
|
MENZIES AVIATION (SOUTH AFRICA) (PTY) LTD |
187 |
|
MH AVIATION SERVICES (PTY) LTD |
189 |
|
SWISSPORT SOUTH AFRICA (PTY) LTD |
191 |