SOME of South Africa’s
smaller airports are
seeking new regional
status that would allow them
to operate larger networks
in the Southern African
Development Community
(SADC).
According to Susan
van der Ryst, Corporate
Communications Manager
for Comair, South Africa had
47 international airports prior
to 1995, which increased
the risk for illegal entry into
the country. “To tighten the
borders and have proper
customs facilities in place,
the government imposed
legislation to allow no more
than 10 international airports
in South Africa,” she says.
She points out that while
charter airlines may benefit
from having more international
airports in South Africa, for
commercial scheduled airlines,
half the demand for regional
flights comes from the longhaul
international markets.
Nico Bezuidenhout, acting
ceo of SAA, is also not
convinced South Africa needs
regional gateways. “The use
of secondary airports remains
a worldwide trend, but South
Africa’s market is relatively
small and the world-class
infrastructure at our major
centres fulfils the majority of
market needs at this time.”
Nico adds that, while
secondary airports have
a proven track record in
terms of effect on market
stimulation, there are
many factors that affect
the outcome. “Regionally,
bilateral regulations manage
capacity between markets
while international flights are
unlikely to shift from existing
infrastructure,” he says.
A potential increase in
airports catering for regional
flights will not necessarily
create an environment in
which LCCs flourish, as is the
case in Europe. Susan says:
“To operate a sustainable
LCC, you need the critical
mass. Short- and medium-term
passenger volumes will not
support a sustainable LCC
service.”
Nico agrees, pointing out
that, although it has been
proved internationally that
regional airports stimulate the
market, in smaller markets
such as SA there may not be
the demand to match this
additional capacity.
LCCs already operating in
the South African market
dispute this, taking the view
that the opening of new
regional gateways would be
welcome. For Oliver Wigdahl,
vp commercial Flysafair, any
degree of liberalisation would
encourage more competition.
Oliver believes more regional
gateways would provide
increased options for flight
connections closer to a higher
number of densely populated
areas. “This has to be good
for the South African travelling
public, who will benefit from
more convenient departure
and arrival points, and
keener airport charges, which
translate into lower airfares
and, in turn, more demand.
This would boost national and
local economies.”
Nico warns, however, that
although new regional airports
in SA may lower operating
costs and have a beneficial
effect on passenger service
charges, this is only a small
portion of input cost when
compared with fuel and
maintenance. “In a market
that is managed by bilaterals
with limited capacity, demand
often exceeds capacity and
thus, natural movement of
pricing,” he comments.
Rodger Foster, ceo and md
of SA Airlink, believes the
introduction of smaller airports
will not necessarily bring down
prices. “Hubs, such as OR
Tambo, offer point-to-point
travel as well as connectivity
and bring economies of scale
and purchasing power, which
are not easily achievable at
smaller regional airports.”
He says the reason why
regional flights are often quite
pricey is because the unit
costs associated with smaller
markets, and commensurately
smaller aircraft, are far higher,
as are operating costs at
many over-border regional
destinations.
Susan agrees that prices for
regional flights are unlikely to
decrease with more airports.
“Prices could even increase
due to the additional airport
infrastructure and operating
costs. The burden of increased
operating costs will be placed
on the airline and ultimately
the fare price,” she says,
adding that prices are subject
to restricted frequency and/
or seat capacity as per the
bilateral agreements.
Oliver admits that, while
smaller regional airports
might charge lower passenger
charges, limited local demand
will determine the use of
smaller aircraft with inferior
economies of scale to match
supply with demand. “With
such aircraft, the costs are
amortised over a smaller
number of passengers, so
costs, and therefore fares, will
remain high.”
According to Oliver, regional
airports would have to offer
competitive charges. “They
must ensure their facilities are
able to accommodate larger
aircraft and they must entice
the larger aircraft operators to
start services by recognising
that part of the airport revenue
stream must come from
passenger revenues on-airport
(retail, parking), rather than
pushing all the cost on to
airlines bringing the footfall to
the airport.”
Despite differences in opinion
on the need for additional
regional gateways, all airlines
agree that the SADC offers
unparalleled potential for
growth. Richard Bodin, fastjet’s
chief commercial officer, says
currently Africa only represents
3% of world aviation, allowing
for huge opportunities. He
believes the main hurdle for
Africa is currently still the lack
of liberalisation of the skies.
Nico says bilateral
agreements governing capacity,
number of flights and number
of carriers, continue to close
out markets to competitors.
“The Yamoussoukro
Declaration, Africa’s open
skies initiative, held the key to
opening up markets. However
it remains in initial stages of
implementation.”
Rodger, however, is confident
about the future. Although
certain bilateral air services
agreements between states
remain restrictive, he sees
much positive progress
made towards an open skies
environment throughout the
SADC region.
Rani Resorts keeps rates down for 2015
RANI Resorts has extended
its SADC rates until
December 22 for Anantara
Bazaruto Island Resort &
Spa (formerly Indigo Bay)
and Anantara Medjumbe
Island Resort & Spa, both in
Mozambique.
The group has also fixed
its rate of exchange at
R10,8 to US$1 until the end
of June for all bookings.
Further good news is a
family special at Anantara
Bazaruto where two children
(18 and younger) can stay
free with any upgrade to a
Deluxe Sea View Pool Villa.
The rate for adults is
US$488pp (R5 270)
per night, and includes
accommodation, return boat
transfers from Vilanculos,
non-motorised activities
and a daily snorkelling trip.
The rate is also inclusive
of breakfast, lunch and
dinner as well as soft drinks,
bottled water, house wine,
local beer and selected
house spirits, tea/coffee
and mini-bar.
Additionally, there is a
partner special at both
Anantara Bazaruto and
Anantara Medjumbe, where
partners pay only 50% of the
accommodation price.
At the Bazaruto resort,
one person will pay US$488
(R5 270) per night while the
partner pays US$244pp
(R2 635) per night. At
Medjumbe Island the rate
is US$472pp (R5 098) per
night for the first person and
US$236pp (R2 549) per
night for the partner.
The Kingdom launches VIP wing
The Kingdom at Victoria
Falls, part of African Sun
Hotels and Resorts, recently
launched the King’s Club
wing, an exclusive part of
the hotel where guests can
enjoy personalised service.
The wing comprises 52
rooms, each of which offer
a luxury king-size bed,
an enhanced bathroom
experience, complimentary
mini bar, a private balcony
or an exclusive deck.
When booking a room in
the King’s Club wing,
guests will also enjoy
return airport transfers,
private express check-in,
a complimentary hand
massage, sundowners
and snacks in the bar, a
fruit basket and bottle of
sparkling wine in the room.
A personal hostess will also
be at the guests’ beck and
call during their stay.
Airlink launches lodge transfers
AIRLINK is launching a
transfer system between
Skukuza, KMIA and certain
lodges. The transfer system
will be timed to connect with
Airlink’s scheduled flight
services from Johannesburg
and Cape Town.
Rodger Foster explains:
“These lodge link services
will feature the lodge
destinations in the GDS with
interline connectivity and
seamless single contract
ticketing, providing access
to these destinations from
all over the world and vice
versa.
A fresh look for Botswana hotel
CRESTA Riley’s Hotel,
situated on the banks of the
Thamakalane River in Maun,
recently completed a major
renovation.
It has been given a
contemporary look while
retaining its African style.
Fifteen of the 51 rooms and
suites, all with private balcony,
have been refurbished. The
hotel’s two conference rooms
have also been refreshed,
and a newly built gym is a
popular addition to the hotel’s
amenities, which include a
24-hour reception service,
Internet access, swimming
pool and poolside bar,
restaurant and the acclaimed
Harry’s Bar.
Border obstacles hinder self-drive
SOUTH African travellers are
keen self-drivers but border
obstacles can stand in the way
of this flourishing market.
Bruce Taylor, co-founder of
Sunway Safaris, says South
Africans are comfortable
with crossing into Swaziland,
Lesotho, Namibia and
Botswana, where the border
posts are efficient and easy.
Aulden Harlech-Jones,
owner of the Cardboard Box
Travel Shop, agrees and
says Namibia, in particular,
has long been popular as a
camping destination for South
Africans. Moreover, during the
last few years, he has seen
considerable growth in the
mid- to upper-market segment.
“This seems to have been
linked to the global financial
crisis and weakening rand,
creating an environment where
travellers who may previously
have holidayed abroad, started
looking for value-for-money
options closer to home, where
their currency goes further.”
Mozambique, however, is
more challenging, according
to Bruce. “I think South
Africans are quite nervous of
being harassed and of being
coerced into paying bribes.
Unfortunately, it is a common
mistake made by South African
self-drivers to ‘throw money at
the problem’ as soon as they
are approached by anyone
looking vaguely official at a
border post, or even on the
roads inside Mozambique.”
Bruce says travellers should
rather acquaint themselves
with the requirements of the
borders for them to become
more confident. “They should
be firm in their refusal to pay
their way illegally. A friendly
attitude and patience go a
long way to easing the border
crossings.”
The Zimbabwean borders are
another problem, according to
Bruce. Beit Bridge can present
delays of between four and
six hours. “This I believe is
definitely a deterrent for South
Africans visiting Zimbabwe.
Several people have told
me they’d rather drive extra
kilometres out of their way or
even adjust their holiday plans
to avoid Beit Bridge.”
Air Zim plans new routes
AIR Zimbabwe is preparing to
launch domestic operations to
Masvingo and Buffalo Range.
The airline also plans to
launch regional routes to
Lusaka and Dar es Salaam.
Gm of passenger and cargo
services, Peter Mukarakate,
told TNW that if things went
according to plan, the airline
could launch operations by the
end of March.
Zimbabwe’s Herald recently
reported that Air Zimbabwe
was aiming to increase its
capacity in 2015 through
new routes and by beefing up
its equipment. This includes
the reintroduction of its 150-
seat Airbus, which is likely
to be used on the HarareJohannesburg
route.
