EMIRATES’ possible
capacity cuts to Africa are
unlikely to include South
Africa, industry experts say.
“In certain African countries
the currencies have really
gone down, so we’re reflecting
on [African routes] where it’s
just not worth us travelling
to,” president Tim Clark said
at a recent International Air
Transport Association event
in Dubai.
The airline has since
suspended its four times a
week service between Abuja
and Dubai with effect from
October 30 but was unable to
tell TNW which other countries
were in line for capacity cuts.
June Crawford, ceo of
Barsa, says it is standard
practice for airlines to review
route profitability, as weak
currencies have a negative
effect on the profitability
of routes as tickets are
paid for in local currency,
despite the airline saving on
landing, parking and other
services (also paid for in local
currency).
But, industry players believe
it’s unlikely that South Africa
is included on the list of
possible capacity cuts, despite
the highly volatile rand. Dinesh
Naidoo, group operations
director of Serendipity
Worldwide Group, says, if
anything, Emirates is likely to
increase capacity to South
Africa as a result of significant
demand. He says this would
possibly be achieved through
the introduction of new
aircraft, starting with the
Johannesburg route.
Kendy Phohleli, md of XYZ
Consulting, says he would
be surprised if Emirates cut
capacity to South Africa as
the airline is doing really
well here. He says, following
capacity cuts to Nigeria,
Emirates will need to redeploy
these aircraft somewhere else
and it would be on a route
where they would make the
most profit.
“From both a product and
price perspective, [Emirates]
is really good at what they
do. If routes were cut it
would negatively impact the
consumer,” says Garth Wolff,
ceo of the eTravel Group.
