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Air Transport and Air Ground Handling Services
BY Liz Kneale
South Africa
12 February 2020
R 14 400.00 (ZAR)  
estimated $ 872.13 (USD) *
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Air Transport and Air Ground Handling Services


The air transport industry is a major contributor to the South African economy as it facilitates the movement of passengers and cargo to, from and within the country. Air transport and foreign tourists travelling by air contribute 3.2% of GDP. Local industry developments are dominated by the business rescue of national carrier South African Airways (SAA) and the liquidity crisis of its subsidiary SA Express. SAA, SA Express and SAA Technical are included in the commission of inquiry into state capture, corruption and fraud in the public sector. Travel restrictions, airport closures and flight cancellations following the global outbreak of the coronavirus are reducing global air passenger and cargo volumes.


Multiple Headwinds


The sector continues to be affected by the economy, the highly competitive domestic airline environment and operational and sustainability challenges. Stringent visa requirements and the relatively limited number of air services agreements hinder the country’s ability to attract international travel. Aviation continues to be affected by capacity constraints due to the delay in the rollout of airport expansion projects. Airports, ground handling and support services are experiencing high operational cost increases including security. SAA, which employs more than 5,000 people and has a fleet of more than 50 aircraft, is in business rescue and has cancelled numerous flights. Its losses total R28bn over the past 13 years and it has not presented government with a financial report since the 2017 financial year. Government has spent R16.5bn in bailouts over the past ten years and is to repay SAA’s outstanding government guaranteed debt of R9.2bn over the next three years.


Report Coverage


This report focuses on the air transport industry, including passenger and cargo services, and airport ground handling services including operation of airports, flying fields and air navigation facilities, and excluding manufacturing. It includes information on the state and size of the industry and factors that influence it. This includes trends in flight and passenger movements, corporate actions in South Africa and on the continent, and regulation and competition issues. There are profiles of 40 companies in the sector including the beleaguered SAA, airlines such as Comair, Mango and Safair, and service operators such as BidAir and Swissport.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions: South African Airways (SAA) 12
4.1.2. Corporate Actions: SA Express 18
4.1.3. Corporate Actions: General 19
4.1.4. Regulations 23
4.1.5. Enterprise Development and Social Economic Development 26
4.2. Continental 28
4.3. International 32
5. INFLUENCING FACTORS 35
5.1. Economic Environment 35
5.2. Rising Operating Costs 36
5.3. Airport Infrastructure Development 37
5.4. Labour 39
5.5. Technology, Research and Development (R&D) and Innovation 45
5.6. Coronavirus 47
5.7. Safety and Security 48
5.8. Cyclicality 49
5.9. Environmental Issues 50
5.10. Electricity Supply Constraints 52
6. COMPETITION 53
6.1. Barriers to Entry 54
7. SWOT ANALYSIS 55
8. OUTLOOK 56
9. INDUSTRY ASSOCIATIONS 57
10. REFERENCES 59
10.1. Publications 59
10.2. Websites 60
APPENDIX 1 62
South African Airports, Aerodromes, Air Bases and Airfields 62
APPENDIX 2 - SUMMARY OF NOTABLE PLAYERS 64
Air Transport 64
Operation of Airports, Flying Fields & Air Navigation Facilities 67
APPENDIX 3 70
Projects and airline activity on the African Continent July 2018 to January 2020 70
COMPANY PROFILES – AIR TRANSPORT 79
AIR FRANCE-KLM SA 79
ALITALIA - SOCIETA AEREA ITALIANA S.P.A. 87
BRITISH AIRWAYS PLC 89
C AND G AIR CC 94
CAPITAL AIR (PTY) LTD 96
CATHAY PACIFIC AIRWAYS LTD 98
CEM AIR (PTY) LTD 102
COMAIR LTD 104
DELLARIA LEASING (PTY) LTD 109
DEUTSCHE LUFTHANSA AG 111
EMIRATES GROUP (THE) 121
ETIHAD AIRWAYS PJSC 125
EXECUJET AVIATION (PTY) LTD 128
FAIR AVIATION (PTY) LTD 130
FASTJET AFRICA (PTY) LTD 132
FEDERAL AIRLINES (PTY) LTD 134
GLOBAL AVIATION OPERATIONS (PTY) LTD 136
MANGO AIRLINES SOC LTD 138
NATIONAL AIRWAYS CORPORATION (PTY) LTD 141
OWENAIR (PTY) LTD 144
QANTAS AIRWAYS LTD 146
QATAR AIRWAYS Q.C.S.C 151
S R S AVIATION (PTY) LTD 154
SA AIRLINK (PTY) LTD 155
SAFAIR OPERATIONS (PTY) LTD 159
SINGAPORE AIRLINES LTD 161
SOLENTA AVIATION (PTY) LTD 165
SOUTH AFRICAN AIRWAYS (SOC) LTD 167
SOUTH AFRICAN EXPRESS AIRWAYS (SOC) LTD 171
TURK HAVA YOLLARI AO 174
UNITED CHARTER SERVICES (PTY) LTD 177
VIRGIN ATLANTIC AIRWAYS LTD 179
ZENITH AIR CC 183
COMPANY PROFILES – OPERATION OF AIRPORTS, FLYING FIELDS & AIR NAVIGATION FACILITIES 185
AIR TRAFFIC AND NAVIGATION SERVICES COMPANY LTD 185
AIRPORTS COMPANY SOUTH AFRICA SOC LTD 189
BIDAIR SERVICES (PTY) LTD 194
LANSERIA INTERNATIONAL AIRPORT (PTY) LTD 197
MENZIES AVIATION (SOUTH AFRICA) (PTY) LTD 199
MH AVIATION SERVICES (PTY) LTD 201
SWISSPORT SOUTH AFRICA (PTY) LTD 203