Airline competition heats up
THE SOUTHERN
African Development
Community is a
strong market for South
Africa with airlines from the
country operating to 14 of
the 15 SADC states,” says
Chris Zweigenthal, ce of
the Airlines Association of
Southern Africa (Aasa).
Air traffic in the region is
increasing and may do so
further, particularly since
Airlink and SA Express are
going head to head on
certain routes (see box)
but there are still many
challenges the aviation
sector needs to overcome.
According to Chris, one
of the biggest hurdles is
the high cost of operations
in these markets, which
operate off relatively low
customer bases, making
unit costs high. “Costs such
as jet fuel, distribution,
airport fees, air traffic
charges and other dollarbased
costs such as
maintenance are expected
to remain at high levels,
with each state having its
own policy and charging
structure for collection from
airlines and passengers.”
To reduce costs, Chris
says growth of the market
and subsequent affiliated
services is needed. “SADC
must provide an enabling
environment together
with all its states for
this growth to occur and,
where possible, enable its
airlines to use opportunities
presented to them.”
Bulelwa Koyana, ceo
of South African Travel
Centre (SATC), believes
there is generally sufficient
capacity to countries such
as Botswana, Malawi,
Zambia and Namibia but
that business-class seats
are sometimes limited. In
addition, the number of
domestic flights within these
countries is sometimes
restricted and frequencies
limited.
Karin Murray, Airlink
marketing manager, says
connectivity and frequency
of flights is important. “Our
flight schedules connect
with most international,
regional and domestic
flights. Airlink also connects
clients to Africa’s most
sought-after destinations
– Botswana (Chobe),
Livingstone (Vic Falls) and
the Kruger National Park.
Through our alliance with
SAA and its Star Alliance
carriers we are able
to connect seamlessly
throughout Southern Africa
and the world.”
Flights on some routes
are often full, says Bulelwa,
so increased competition
would be beneficial towards
creating greater
capacity and fare
options. She says
fares have indeed
become somewhat
more competitive in the
markets where both SA
Express and Airlink now
operate.
Chris agrees but points
out that SA Express and
Airlink’s traditional markets
are thinner secondary and
tertiary markets, where size
is limited and operating
costs are relatively high.
“One will need to wait for
the response of the market
to see if the operations are
sustainable at the lower
fares and high costs,” he
says.
In Malawi, the instability
of Air Malawi has had an
impact on inbound travel.
Salad Nthenda, vice consul
(Tourism) at the Malawi
Consulate General in SA,
says the absence of a
national airline led to limited
flights, which culminated
in very high and prohibitive
airfares. “As such, travellers
opted for destinations
that offered lower, more
competitive airfares. Overall,
this scenario led to slower
growth in the numbers of
leisure tourists to Malawi.”
To grow the number of
South Africans – Malawi’s
largest tourist market,
accounting for 14%
of arrivals – improved
accessibility is imperative.
According to Salad, the
difficulties in getting a flight
to Malawi will be minimised
with the launch of a new
airline, Malawian Airlines
(see next page).
Thapelo Moribame,
Air Botswana marketing
manager, is another airline
representative supporting
increased competition:
“From an Air Botswana point
of view, extra competition
presents an opportunity
for the airline
to evaluate its
operations and put
resources to their most
valued use to remain
competitive and relevant
within the market.”
Chris believes the region
needs to work towards
further liberalisation. “This
would involve more liberal
exchange of third and fourth
freedom rights with an
extension of fifth freedom
rights, in particular, where
there are no third or fourth
freedom operations, as well
as reciprocal exchange of
fifth freedom rights between
states.”
Further, he says airlines in
the region must continue to
focus on improving safety
records and implement
the provisions of the Abuja
Declaration and its five-point
safety plan signed in July
2012.
New reginal services
SA Express (SAX) and
Airlink both operate the
Johannesburg-Gaborone
route. Airlink has also
applied to the Department
of Transport for routes
that SA Express already
serves, including Cape
Town-Walvis Bay, Cape
Town-Windhoek and
Johannesburg-Walvis
Bay. SAX has applied
for Durban-Maputo,
Johannesburg-Maseru and
Johannesburg-Bulawayo,
currently served by Airlink.
Malawi
Malawian Airlines
launches Jo’burg service
MALAWIAN Airlines
launched its inaugural
international flight to
Johannesburg on January
31. The flight originated in
Lilongwe with a stopover in
Blantyre.
Kassim Geresu, ceo of
the airline, says: “This is
the first time that Lilongwe
and Blantyre will have daily
flights into Johannesburg,
one of Africa’s busiest
connecting hubs to the rest
of the world.”
Malawian launched its
maiden domestic flight from
Lilongwe to Blantyre on
January 30. The airline is
expecting to operate twicedaily
flights between the
two destinations.
Malawian Airlines’ first
two aircraft, a Boeing 737-
800 and a Bombardier
Q400, were delivered by
Ethiopian Airlines just one
day before the inaugural
flight during a ceremony
at Kamuzu International
Airport in Lilongwe.
The announcement
of the airline’s maiden
flight comes just weeks
after Malawian Airlines
obtained its Air Operator
Certificate (AOC) from the
Malawi Department of Civil
Aviation.
According to Kassim, the
airline is initially planning
to serve Lilongwe, Blantyre,
Johannesburg, Harare,
Lusaka, Dar es Salaam,
Beira and Tete.
The airline has started
selling tickets based on its
schedule at its sales offices
and at all travel agent
outlets across the country.
The shareholding of
Malawian Airlines is 49%
Ethiopian Airlines, 20%
Government of Malawi
and the remaining 31%
to be sold to Malawian
institutions and individuals.
Last year, the Malawi
government placed the
struggling Air Malawi under
liquidation. Ethiopian
Airlines was selected as
a strategic partner to
re-capitalise the ailing
airline and rebranded it as
Malawian Airlines.
SATC grous regional footprint
THE South African Travel
Centre continues to grow
its geographical footprint
and is continuously
recruiting franchisees to
the consortium.
SATC currently has
more than 80 agencies
in the major centres
around South Africa and
outside its borders.
Its regional agencies
include AT&T in
Botswana, Ezulwini Travel
in Swaziland, Golden
Travel in Mozambique
and Travel Bureau in
Ghana. The company is
currently finalising a new
member in Zambia.
Bush and beach give Malawi appeal
ALTHOUGH growth in
passenger numbers to
Malawi has been hampered
by accessibility challenges,
the country has much to
offer to SA travellers wishing
to combine experiences.
According to Salad
Nthenda, vice consul at the
Malawi Consulate General,
South Africa is the biggest
source market for Malawi,
followed by the UK and The
Netherlands. The majority
of visitors from SA are
holidaymakers or are visiting
friends and relatives.
Salad says: “Although
most SA holidaymakers go
to Malawi for the freshwater
Lake Malawi, the major draw
card is the possibility of
combining bush and beach
experiences, coupled with
the friendliness of Malawians
and low crime rates.”
The key focus for the
country, according to Salad,
is to grow the numbers
of leisure travellers by
enhancing the visibility
of the destination in the
main source markets and
increasing the destination’s
accessibility. Salad adds that
the new Bingu International
Conference Centre in
Lilongwe and the rise of
international standard
conference facilities will
provide a big boost to the
country’s MICE sector.
Key selling Features...
According to Salad, agents
should keep in mind that
Malawi:
is a rare combination of
freshwater (Lake Malawi) and
the Big Five experience in
natural settings;
offers value for money;
offers warm hospitality;
is only a two-hour flight from
Johannesburg;
has seen a significant
amount of return visitors
is an all-year destination with
sub-tropical weather.
Botswana
Houseboating on the Chobe River
HOLIDAY Tours is marketing
the four-star Ichobezi Safari
Boats, which ply a stretch of
the Chobe River in the Eastern
Caprivi in Namibia, directly
opposite Botswana’s Chobe
National Park.
While guests embark and
disembark in Namibia, they
experience the rich and diverse
wildlife of this spectacular
Botswana reserve.
Ichobezi is family owned
and managed and clients
stay aboard the boats, which
operate as floating lodges.
Facilities on board include
lounge, bar, open-air dining
area, sun deck and even a
small plunge pool. Four luxury
cabins are all en-suite.
Prices from Holiday Tours
start from R9 065 per adult
sharing for a three-night stay,
including flights (excluding
taxes), return airport
transfers, accommodation,
drinks and meals.
Cresta grows online presence
WITH a growing customer
base following the opening
of Cresta Jwaneng in
Botswana and Cresta
Sprayview in Victoria
Falls, Cresta Hotels has
introduced new online tools
to make bookings easier.
“We realise that, as
our room inventory
continues to increase,
we need to ensure that
our sales and marketing
distribution channels
have a global reach and
are responsive to the
increasing demands of our
customers," says Glenn
Stutchbury, group ce. “We
want to make it easier
for our guests to make
reservations at any Cresta
hotel from anywhere in the
world, 24 hours a day, 365
days of the year." Working
with key online partners,
the group has optimised
its websites to make
reservations via mobile
phones or tablets.
In addition to its own
websites, Cresta Hotels
has partnered with agoda,
Expedia and Booking.com,
online travel agencies with
a global reach.
More demand for SA-Botswana flights
THAPELE Moribame,
marketing manager at Air
Botswana, says there is
ever-increasing demand
from South Africa to
destinations in Botswana,
with an equal split
between business and
leisure travel. “Growth in
demand is spurred on by
new developments in both
sectors.”
According to Thapelo, Air
Botswana’s routes that
originate from SA to the
northern part of Botswana
(Kasane and Maun) are
primarily leisure. He says
this is the heartland of
tourism in Botswana.
In contrast, the routes
from SA to Gaborone and
Francistown are primarily
used by business travellers.
“All other routes have an
equal mixture of leisure and
business and the airline
caters for both,” he adds.
Peter Schoeman,
divisional director sales and
marketing at City Lodge,
believes Botswana holds a
lot of potential. “Botswana
has a relatively small but
strong and well-managed
economy. It is an important
neighbouring country and
the City Lodge hotel group
is pleased with the market
penetration our Town Lodge
Gaborone has made since
opening in early 2013.”
He says while the Town
Lodge in Gaborone is
mainly aimed at business
travellers, it does cater for
some leisure travellers,
especially on weekends.
JNB-GBE: same-day return flights
AIRLINK introduced sameday
return flights from
Johannesburg to Gaborone
from January 20, offering
a schedule that is in line
with its clients’ needs
According to Karin
Murray, marketing
manager for Airlink, the
flight targets the business
traveller as it provides a
full day to do business
in Gaborone as well as
a full day of business in
Johannesburg for corporate
clients from Gaborone.
Airlink also operates
daily direct flights from
Johannesburg to Maun,
and Johannesburg to
Kasane. The airline’s plan
to launch two flights a
week from Johannesburg
to Skukuza and one
per week from Cape
Town to Skukuza tags
on to the circuit linking
Botswana with Livingstone
and Kruger. The flights
commence in June.
Zambia
Zambian national carrier in the offing
ACCORDING to, Zambia’s
transport minister, Yamfwa
Mukanga, the country is
planning to launch a national
carrier offering both longhaul
and domestic flights.
Zambia Airways, the
country's previous national
carrier, went bankrupt in
1994, and the industry
has seen a number of
established international
carriers, including British
Airways, pull flights because
the route was loss-making.
Several media reports claim
that Zambia travel and
tourism stakeholders have
joined forces to put pressure
on the government to make
a Zambian national airline a
reality.
Meanwhile, low-cost
carrier fastjet recently
announced that it was
in discussions with the
Zambian government about
setting up an operation for
the airline in Lusaka. In a
statement the airline said:
“The company believes
the establishment of the
fastjet operation would bring
benefits to the country and
Zambian people through
the expansion of trade and
tourism links as well as
increase the safety and
reliability improvements
to the Zambian aviation
industry.”
It explains that the new
operation would likely be
distributed and marketed
as a part of the pan-African
fastjet network but would
be a Zambian-registered
company.
An easy sell...
WITH its good climate and
proximity to South Africa,
Namibia is a popular choice
for many travellers. Add to
that the attractive benefits of
acceptability of the rand and
visa-free entry for SA passport
holders.
Spokesperson for Air
Namibia, Carolyn Riddick, says
the following are the mostvisited
destinations in the
country by South Africans.
Swakopmund and Walvis
Bay: Walvis Bay resembles
a small German town
and creates a feeling of
timelessness with its palmlined
streets. Swakopmund
offers the adventurous traveller
activities such as quad biking,
sandboarding and parasailing.
Fish River Canyon: This is
the second largest natural
gorge in the world, the largest
in Africa. It is set in a harsh,
stony plain dotted with various
drought-resistant succulents.
Lüderitz: Here visitors
can view the colourful
fishing harbour and visit the
Kolmanskop diamond mine
ghost town.
Sossusvlei: The dunes in
Sossusvlei, part of the Namib
Desert, have developed over
millions of years as a result
of material flowing from the
Orange River dumped into
the Atlantic Ocean, carried
northward and then returned
to land by the surf. Visitors
can climb up the dunes for
breathtaking views of the whole
area or visit Deadvlei, a large,
ghostly expanse of dried white
clay punctuated by skeleto.
Did you know?
Namibia Wildlife Resorts has opened
the revamped Popa Falls Lodge on
the Kavango River, 15km from the Mahango Game Reserve. It is an ideal
stopover on the way to the Khaudum and Mahango game reserves and
for visitors travelling to Botswana, Zambia and Zimbabwe. The lodge has
10 river chalets, three family chalets, 10 campsites and three overlander
campsites. It also features a restaurant, bar and conference facilities.
Win a ‘picture perfect’ moment!
IN A trade competition
sponsored by the Namibia
Tourism Board and running
until mid-March, travel
consultants can win not only
a digital camera but also a
trip for two to Namibia.
Visit the website, www.
thenamibianexperience.
co.za and answer four easy
questions about Namibia’s
tourism highlights. On
completion, entry into the
draw is automatic, and
consultants who refer
friends to the website
receive additional entries.
“Namibia is set to be
the destination of choice
for the Southern African
market once again in 2014.
It is a vast destination, with
many unique selling points
that appeal to different
markets. Whether your client
is looking for an African
adventure teeming with
wildlife, a cultural experience
second to none, the
opportunity to experience
the vast open plains of
Namibia’s natural beauty
or even to check out the
adventure that Namibia has
to offer, we want to assist
the trade in selling Namibia
with ease and confidence,”
said Liesel Wild of the
NTB. “If at the end of the
campaign we have met our
objective of educating the
trade while allowing one
lucky person to experience
Namibia firsthand and be
able to see what makes it
so unique in terms of its
tourism offering, then the
campaign is a success.”
More comfort on Air Namibia
AIR Namibia boasts one of
Africa’s youngest fleets and
believes the destination will
see further growth in the
future, says Carolyn Riddick.
The fleet now comprises
two 244-seat A330-200s,
four A319-100s and four
Embraer ERJ 135s. Carolyn
says the leg-room offered
on all flights is a major draw
card for travellers.
