New hubs rise and shine
OVER a decade ago
the global aviation
industry was shaken
up by the Gulf carriers,
who became ‘super
connectors’ thanks to their
convenient geographic
locations and unrivalled
capacity.
In recent years, as
other airlines have grown
their networks, they are
challenging the Middle
Eastern carriers’ share
of the market as they
develop hubs in other
regions. Simultaneously,
improved aircraft
technology has many
carriers experimenting
with long-haul destinations
that could result in the
availability of more direct
options.
It has been widely
reported that Turkey is
fast becoming the next
‘super connector’, showing
robust growth to claim
20% of the transit market
it shares with the Gulf
carriers.
This is attributed to
Turkish Airlines’ expansion
and its hub, Istanbul’s
strategic location between
Africa, Europe and Asia.
A new airport will open in
the capital in October.
Closer to home, the
tropical island of Mauritius
is becoming a convenient
point connecting Africa to
India, Australia, Malaysia,
Singapore and Hong Kong.
Carla da Silva, regional
general manager:
Southern Africa and Latin
America for Air Mauritius,
says: “Mauritius
established a hub due to
its ideal geography. For
example, it is only six
hours and 10 minutes
flying time to Mumbai from
Mauritius and six hours
30 minutes to Perth.”
In addition to the
short flying time, Carla
cites new-generation
aircraft and competitive
airfares as drawcards for
travellers.
“A huge focus has been
placed on Mauritius as a
hub with our new awardwinning
airport featuring
all the relevant facilities
for business and leisure
travel beyond Mauritius,”
she says.
“Air Mauritius South
Africa has established
excellent corporate and
leisure value propositions
for all our ‘beyondMauritius’
destinations
and we offer more valueadds
over and above
extremely competitive
rates. It makes no
commercial sense to fly
20 hours to Perth, for
example, when one can
get there with less flying
time and at cost-effective,
all-inclusive rates.”
According to Carla,
almost 20% of travellers
fly onwards from the
island. Free stopovers
offered on non-connecting
flights are popular and
used by corporations for
dual-destination business
trips.
Mauritius is also popular
as a meeting point for
friends and families
around the world.
Rwanda’s geographical
location in the heart
of the continent allows
RwandAir to connect
both intra-Africa traffic
and international traffic
through its hub in Kigali.
“One of our unique
selling points is that
the majority of our
connections through Kigali
are less than two hours,”
says country manager for
South Africa, Thembela
Dladla.
He points out that a
bigger international airport
(Bugesera) is being built
just outside Kigali in
anticipation of increasing
passenger demand over
the next couple of years.
South African travellers
have for years used
Europe as a gateway to
the Americas. Consuelo
Arias Hernandez,
corporate communications
for Iberia, says: “We have
developed our hub at
Madrid airport as the main
gateway for passengers
flying from Europe to Latin
America and back. We
link 32 cities in Spain, 63
in Europe with 19 cities
in Latin America and six
destinations in the US. We
offer 250 flights a week to
Latin America.”
Meanwhile, many Asian
carriers continue to
function as important
hubs in that region.
Singapore Airlines, says
market development
manager, Sally George,
has always been
committed to contributing
to the further development
of the Singapore hub.
“We do this by enhancing
frequencies to existing
markets and launching
services to new
destinations whenever
it’s feasible. This is an
approach that we will
continue to adopt in the
long-term to strengthen
Singapore’s position as a
global travel hub.”
But, Sally adds, the
airline also seeks
opportunities to expand
its route network through
codeshare arrangements
with other airlines
and has a multi-hub
strategy to establish new
growth engines outside
Singapore, namely through
Vistara (India) and
NokScoot (Thailand).
She says the airline
recently completed the
first year of a threeyear
programme of
transformation to focus
on its core business. As
such, it has implemented
various initiatives relating
to digital enhancements,
pricing and more
personalised offerings to
customers.
“Competition in the
airline business is not
a new phenomenon and
we have competitors on
every route we serve.
Competition keeps us
on our toes and we
remain competitive by
continuously upgrading our
products and services to
offer customers the best
travel experience,” says
Sally.
In it for the long haul
manager marketing and
communications South
Africa for Virgin Atlantic,
says the airline operates
a network of international
services to North America,
the Caribbean, Africa and
Asia from its hubs at
Heathrow and Gatwick, as
well as domestic services
to UK destinations such
as Manchester and
Edinburgh. He says Virgin
Atlantic’s young fleet,
which includes a mix of
different aircraft from
B747s to B787s, makes
the airline strong for
long-haul leisure travel.
“Traditionally reliant on
long-haul point-to-point
traffic, we have now
taken steps to improve
connectivity at our LHR
hub.”
At Heathrow, Darrin says
Virgin Atlantic and its jointventure
partner, Delta, are
co-located at Terminal 3,
providing a seamless
service for those
connecting on either
airline’s flights. Other
advantages for travellers
are plenty of counters to
keep queues short in Zone
A of T3, automated selfservice
kiosks, a family
room for those travelling
with kids, the Clubhouse
and spa for Upper Class
customers and Flying Club
Gold members, and the
Revivals lounge where
those landing in the
morning can refresh with
showers, spa treatments,
breakfast and business
facilities after a long
overnight flight.
At Gatwick, all Virgin’s
flights depart and arrive at
the North Terminal. Online
check-in is also available
and counter check-in
opens four hours before
departure. For those
flying in the early hours
of the morning, bags can
be dropped off the night
before. GatwickConnects,
a special desk for
connecting passengers
assists in the processing
of luggage and boarding,
and families can make
use of the family room at
the airport.
Olivia Cullis, Delta
Air Lines regional
director of corporate
communications for
Europe, the Middle East,
Africa and India, says
the airline is committed
to serving Johannesburg
non-stop, linking it to
Atlanta. “Atlanta airport
is significant. Not only is
it the leading gateway for
Delta but it is also the
world’s largest airport.”
She adds that the airline
operates more than 1 000
peak-day departures from
the hub, giving those flying
from Johannesburg access
to more than 200 cities
across North America,
South America and the
Caribbean.
“Demand between
Johannesburg and Atlanta
is extremely high and
load factors in passenger
sales and cargo are very
positive, which reflects
the value of the non-stop
service,” says Olivia.
Delta, she says, has
invested in its products
and services and
unrivalled network of
connecting opportunities
via its Atlanta hub while
offering competitive fares.
“Leveraging our global
network is key. We are
focused on improving the
connection experience
for our customers. This
increases the value
proposition to the
customer and really
speaks to an overriding
strategy as a hub-andspoke
global carrier.”
Olivia points out that, on
Delta flights, passengers
can make use of free
mobile messaging via
WhatsApp, iMessenger
and Facebook Messenger
while WiFi connectivity
and more than 1 000
hours of Delta Studio
entertainment are
available at every
passenger’s seat.
Gulf traffic is still growing
WHILE the latest Iata figures
show a slowing down of air
traffic growth in the Middle
East, carriers in the region
still believe it will continue
to shine as a global hub.
Fouad Caunhye, regional
manager Southern Africa
for Emirates, says Dubai
“enjoys a rare distinction
of being a hub as well as
a point-to-point network
situated within a four- to
eight-hour radius of major
destinations in North
America, Europe and Asia”.
“By 2020, it is expected
that more than a million
passengers will use Dubai’s
airport as a hub.”
He adds that Dubai’s
status as a global centre
will continue to strengthen,
given its extensive
connectivity, strong
economic prospects and low
tax system, underpinned
by world-class amenities
and infrastructure.
From South Africa,
Emirates operates 56
weekly flights year round,
connecting travellers to
more than 155 destinations
across 85 countries, which
Fouad points out, makes
travel planning “effortless
and efficient”. “If you look
at the frequency of flights,
for example to the UK,
Emirates offers 10 daily
connections into London.
If you don’t find a suitable
connection and the waiting
time is over six hours,
irrespective of the class of
travel, Emirates provides
accommodation.
“Despite a late start
[Dubai] now handles
more traffic than London
Heathrow. With trade and
tourism accounting for more
than 28% of the GDP, Dubai
as a hub is just taking off,”
he says.
Ready for the 18hr fllight?
IN OCTOBER, Singapore
Airlines will launch the
world’s longest direct
flight from Singapore
(Changi Airport) to New
York (Newark Liberty
International Airport).
The route is about
9 000 nautical miles
(16 700km) with a
journey time of up to 18
hours, 45 minutes. The
route is being launched
following the delivery of
the new Airbus A350-
900ULR (ultra-longrange).
Currently, the longest
non-stop flight is between
Auckland and Doha
(17,5 hours), operated
by Qatar Airways. Last
year, Qantas Airways
challenged Boeing
and Airbus to develop
aircraft capable of
connecting Sydney and
London (which would be
a 9 600-nautical mile,
21-hour flight) by 2022.
Can low-cost work on long-haul?
LAST year saw a number
of low-cost long-haul
airlines launch routes
mainly between Europe
and North America. But
some, such as Eurowings,
included South Africa in
their networks. Industry
experts remain sceptical
about the sustainability of
these services.
Kirby Gordon, FlySafair vp
of sales and distribution,
says, because of the
amount of businessoriented
regional traffic,
there is a lot of reliance on
business class into Africa.
He adds that, with the
exception of destinations
such as Zanzibar and
Victoria Falls, there isn’t
much leisure trade and, as
such, the low-cost model
is unlikely to work.
He calls very long-haul
“tricky”, explaining that
legacy carriers make a
significant portion of their
revenue from business and
first-class seats. “When
we do the maths to see
what we could achieve by
operating a full economy
configuration on a longhaul
flight, there’s not a
lot that we can really do to
improve on the prices the
existing legacy carriers are
offering in their economyclass
cabins. It’s worthy of
deeper investigation, but
it’s uncertain that there’s a
really strong model for the
types of hauls we would
look at to get to Europe,
the East or the US,”says
Kirby.
Mango’s Nic Vlok,
says there has been a
number of low-cost longhaul
airline start-ups with
varying levels of success.
“Some niche long-haul
carriers are also exploiting
certain high-density
routes successfully.
There is no doubt that
the commoditisation of
long-haul travel will see
the operating model
evolve. The concept of
low fares and paying for
most ancillaries, such
as baggage and food,
is already present as
travellers’ perception of
value evolves.”
The low-cost model,
Kirby says, makes more
sense and is “great for
consumers” on domestic
routes. “Local flights are
seldom, if ever, more than
two hours, so an economy
seat is really more than
fine for most. The great
news for consumers
is that the amount of
efficiently operated
capacity on the market is
keeping fares low, which
means more people can
actually afford to fly, which
is good for everyone!”
Nic believes domestic
air travellers have become
increasingly price sensitive
and almost all growth
in air travel has taken
place in the low-cost
segment. “There is a role
for so-called legacy fullservice
carriers but that
demand is shrinking. The
existence of high-density
routes with mostly pointto-point
demand such
as Johannesburg-Cape
Town and JohannesburgDurban,
complements the
equation for a successful
operation.”
It’s all about pricing
AS A result of route
network expansion and
wide choice on popular
routes, airlines are obliged
to compete on service.
But, when it comes to
the factors South African
travellers take into
account when making
a flight booking, Kirby
Gordon of FlySafair,
comments: “If it’s
personal or leisure travel,
I think you’ll find price to
be the most important
factor – with a tiny bit of
wiggle room if it comes
to schedule convenience
– i.e. not having to wake
up at 04h00! Business
travellers and commuters
are a little more stuck to
their required schedule
and times, so they
are a little less price
sensitive. What they really
appreciate though, is a
good on-time performance.
We’ve had a number of
corporate accounts shift
to us for this reason.”
Rodger Foster, ceo
and md of Airlink, says
traveller choice is
influenced by price and
the value proposition,
ease of convenience
and service delivery.
He explains that Airlink
generally services the
“thinner, more challenging
routes” that require
smaller-gauge aircraft to
ply sufficient frequency at
the right time to serve the
market adequately.
“Our unit costs are
more than those of the
low-cost carriers, traffic
volumes are less than
required to generate
sufficient revenue at low
fares. Accordingly, we
are compelled to sell
our seats for more than
the LCCs, as do our
counterparts all over the
world. This often creates a
perception of high pricing,
which is not the case
when comparing like-withlike
services offered by
global proxies. To counter
the perception, Airlink
must offer exceptional
service delivery at the
most affordable price,”
says Rodger.
Carla da Silva of Air
Mauritius believes factors
that influence business
travellers’ choice of
airline are pricing and
time. Leisure passengers
travelling beyond Mauritius
are most concerned with
price, followed by offering
and service. “Travellers
are also focused on
the value-for-money
propositions and take
into account flexibility and
value-adds being offered,”
adds Carla, naming free
date changes, additional
luggage benefits, lounge
access and last-minute
upgrades on departures
as examples.
A survey conducted by
low-cost airline, Mango,
recently found that 53% of
local travellers put more
emphasis on low ticket
prices than anything else.
“This makes sense, as
South Africans are now
paying more for living
costs and supports the
notion that domestic air
travel has commoditised,
and international travel is
heading that way,” says
Mango’s Nic Vlok.
However, Darrin Thomas
of Virgin Atlantic, says SA
travellers are becoming
increasingly conscious of
product and experience.
“Product quality and
overall experience are
becoming a lot more
important than price.
Travellers are developing
their preferences and will
choose one carrier over
another, based purely on
how well they have been
looked after. Customer
experience is key.” As
such, Darrin says Virgin
Atlantic has invested
£10 million (R178m) in its
new cabin design.
Challenges delay African expansion
WHILE demand for
additional capacity between
African countries may
exist, airlines say the
opportunities to expand on
the continent are few and
far between.
Airlink’s Rodger Foster
says travel patterns within
Africa and intercontinentally
have changed and, in
recent years, Johannesburg
has had to compete with
other “competent” hub air
transportation systems.
“While customers are
finding easier access to
the world via the north,
new opportunities are
opening by making use of
smaller regional aircraft
such as the Embraer E-Jet
to provide air access to
smaller communities via
significant hubs such as
Johannesburg.”
Rodger says the continent
is fragmented and its airline
network systems haven’t
developed as it is tedious
and costly to gain access to
markets.
“This has to change if air
services within Africa are
to grow and reach their
potential.” He says each
of Africa’s 54 states has
its own competent aviation
authority with its own set of
civil aviation regulations and
technical standards. “African
states should remove the
obstacles to entry and see
themselves as facilitators
to the propagation of air
transportation systems
rather than the inhibitors
they currently are. Signing
the Single African Air
Transport Market accord
will not, on its own, change
anything. Africa has a
fast-growing population
and an expanding middle
class. Opportunities
lie in establishing air
transportation networks,
interlinking Africa’s
economic growth nodes and
tying these to a few hubs
such as Johannesburg,
thereby providing air
access to and from these
destinations and linking
them to the world.”
Mango’s Nic Vlok, says
the current economic
environment doesn’t
support much growth in
SA’s domestic sector and,
as a result, some airlines
are making moves to
expand into the regional
market where opportunity is
perceived. “Mango will not
be left behind.” But he adds
that there are limitations
to this type of expansion
and the liberalisation of the
African air travel market
needs to gain more traction.
“Regional air travel will not
escape the commoditisation
trend, and the liberalisation
of the aeropolitical
environment will provide
some impetus. There are
already low-cost carriers in
operation in Africa and the
number will grow,” says Nic.
FlySafair’s Kirby Gordon,
believes that if recent
history is anything to go by,
we are unlikely to see any
really significant changes
in the opening of African
skies. That said, FlySafair
is optimistic. A country’s
aviation industry, he believes
is closely related to the
country’s economy. “We
know that African economies
are growing and evolving at
a quick pace; it’s only been
in fairly recent history that
we’ve see Ethiopian Airlines
and Kenya Airways become
the forces they are.”
Similarly, Olivia Cullis
of Delta Air Lines, says
Africa is a region of
huge opportunity. “Doing
business on the continent
brings unique challenges,
however new technology,
improved communications
and developing economies
are reflecting the changing
landscape in the African
aviation industry alongside
expanding global commerce
on the continent.”
Virgin Atlantic ups capacity to UK and US
VIRGIN Atlantic is offering
more direct flights between
the UK and US through its
joint-venture partner, Delta.
Together the airlines have
in excess of five million
seats between the UK and
US from London Heathrow,
Manchester, Edinburgh,
Glasgow and Belfast.
Virgin Atlantic is also
increasing the number of
flights it operates from
Manchester. As of March
2019, it will introduce
a direct service to Los
Angeles and will double
the number of flights
to Las Vegas. The new
LA route, coupled with
increased services to
Boston and Las Vegas, will
see up to 14 000
seats a week on offer
directly from Manchester
to the US and the
Caribbean.
The airline will also
launch a new flight
between London Heathrow
and Las Vegas at the end
of March 2019.
RwandAir to fly US direct
RWANDAIR has been granted
a licence to operate direct
flights to the US, following
approval from the US
transport department. This
follows its securing of the
Kigali-Harare-Cape Town route
in May. The direct flights will
begin in August. The carrier
has also been granted a
licence to start direct flights
to Guangzhou, China. Both
the US and China routes are
likely to start toward the end
of the year with flight details
still to be finalised. RwandAir
has confirmed that the US
service will operate to either
JFK or New York’s Newark
Airport.
ET launches Barcelona route
ETHIOPIAN Airlines has
finalised preparations
to launch new flights to
Barcelona as of July 1.
The flights between
Addis Ababa and
Barcelona will include a
stop-over in Madrid at
the Adolfo Suárez MadridBarajas
Airport, and
will be serviced by the
ultra-modern B787-800
Dreamliner.
Flight ET 0712 from
Addis Ababa to Madrid
will operate Tuesdays,
Thursdays, Saturdays
and Sundays, with flights
from Madrid to Barcelona
operating on Mondays,
Wednesdays, Fridays and
Sundays.
Flight ET 0713 from
Barcelona to Madrid and
from Madrid to Addis
Ababa, will operate on
Mondays, Wednesdays,
Fridays and Sundays.
Ethiopian Airlines
Group ceo, Tewolde
GebreMariam, says: “The
new flight to Barcelona
will provide seamless
connectivity options
for business people
from Barcelona to our
extensive African network
of 58 destinations via
our main hub in Addis
Ababa.”
Fastjet increases frequencies on key routes
FASTJET has increased
frequencies between Maputo
and Beira to double daily, and
added a flight between Tete
and Maputo on Thursdays.
The airline has also increased
frequencies between Dar es
Salaam and Kilimanjaro, and
Dar es Salaam and Mwanza,
with three daily returns, after
reducing its Dar es SalaamMbeya
flights.
FlySafair keeps its eye on costs… for now
“WE’VE got two new aircraft
coming into the fleet and
they’ll be used for now to
boost the capacity on our
existing routes,” says Kirby
Gordon of FlySafair. “A big
part of the low-cost business
model is about getting the
best economies of scale,
so the more we can fly, the
better.”
FlySafair’s model is to
operate one aircraft type,
he says, as this means
lower overheads in terms
of crew training. “That can
be a tad limiting in that we
cannot actually operate to
every airport in the country
because many of the
smaller ones don’t have
the correct safety grades
to accommodate our B737
aircraft. Similarly, we’re set
with a fixed size and an
airline has to operate mostly
full, most of the time, to be
profitable. There needs to be
enough demand to actually
accommodate our service.”
Kirby says there needs
to be at least 130-160
passengers on a given route
(in both directions) every day.
“When you look at it, that
really only happens on some
of the more popular routes.”
Due to these constraints,
Kirby says there aren’t many
more available options open
to the low-cost carrier, but
FlySafair will constantly
look at where it can make
a difference as the market
changes.
Did you know?
South African Airways has added capacity between East London and Johannesburg. Effective June 10, the
airline has increased the service to 30 flights per week. Flight SA472 departs East London on Mondays,
Thursdays, and Saturdays. Return flight SA477 departs on Wednesdays, Fridays, and Saturdays.
