SAX grounding highlights industry issues

THE temporary
grounding of
SA Express has
highlighted concerns in
the South African aviation
space, including the need
for a “more level playing
field” and competition on
secondary routes, experts
say.
Thousands of passengers
were left stranded over
the weekend of May 1
when SAX’s Air Operater
Certificate was suspended
by the South African Civil
Aviation Authority (SACAA),
after recent inspections and
audits revealed deficiencies
relating to the operator’s
safety monitoring systems.
“There are smaller routes
where SAX is the dominant
carrier. Where one carrier
has the monopoly on a
route, the public is only
exposed to the decisions
of one set of managers.
Then if those managers
get something wrong,
everyone is left in the
lurch,” says aviation expert,
Joachim Vermooten.
However, it’s not that
simple, say airline
authorities. Increased
competition on routes
operated by SAX is not
feasible as passenger
demand dictates which
routes airlines operate,
says Barsa ceo, June
Crawford.
“I don’t think the size of
the market is conducive to
large growth in the smaller
markets,” agrees Aasa ceo
Chris Zweigenthal. “There
are many people who selfdrive.”
“Historically, the thin
routes cannot easily sustain
and support competition,”
says Rodger Foster, ceo
of Airlink. He adds that
with more competition,
prices drop, which may
not be sustainable for
carriers operating the
route. “Eventually there is
a calamity and one carrier
falls off,” he says.
A lot also depends on
the type of aircraft and
capacity on the route,
says Theunis Potgieter,
Fly Blue Crane cco. “If you
operate a 60-seater aircraft,
there is enough demand.
But it wouldn’t work for
instance with a 180-seater
aircraft.”
Time for privatisation?
More than anything else,
the SAX debacle proves
the need for a level
playing field within the
South African aviation
industry, says Rodger. “It
is problematic that private
airlines compete against
state-owned carriers who
are both competitors and
rule-makers.
“Airlines are operating
in a space where some
carriers have to make profit
and others don’t; some can
sell fares below cost prices
while others can’t afford
to – yet all are competing
for the same passenger,”
he says.
The Democratic Alliance
has released a statement
arguing that it is now time
for state-owned airlines to
be privatised. “It is obvious
that the only way to save
both the reputations and
actual existence of SAX
and sister airline SAA,
is to privatise the failing
state-owned entity and
completely overhaul the
management of the airline,”
DA shadow minister of
public enterprises, Natasha
Mazzone said.