It operated a fleet of 35 Airbus aircraft, 18 of them A330 wide-bodies. Oil shocks, currency fluctuations, geopolitical skirmishes, the occasional accident and groundings. On intercontinental routes, airlines from outside Africa have more than 70% of seats (and their passenger share is likely to be higher, given better load factors). South African Airways is the state-owned flag carrier airline of South Africa. For the past five years it averaged around 1% and has slowed every year since 2013. Ethiopian has maintained double digit annual growth in spite of the Boeing 737 MAX 8 crash it suffered in Mar-2019 and the subsequent global grounding of all MAX aircraft. ET We cut through the noise for you. JOHANNESBURG - South Africa’s aviation industry became the latest casualty of the spreading coronavirus (Covid-19) after domestic airlines … You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air Asia Japan, etc.). That puts at risk more than 250,000 South African jobs and $5.1billion (about ZAR 93bn) of South Africa’s GDP, which is generated by aviation directly and by air transport-dependent tourism. This article uses the PESTLE methodology to analyze the global aviation industry or the airline industry. Slow infrastructure is the major problem in the airline industry. That puts at risk more than 250,000 South African jobs and $5.1billion (about ZAR 93bn) of South Africa’s GDP, which is generated by aviation directly and by air transport-dependent tourism. DUBLIN, Feb. 2, 2021 /PRNewswire/ -- "The Pharmaceutical Industry in South Africa 2020" report has been added to ResearchAndMarkets.com's offering. Ethiopian Airlines is Africa’s biggest airline (by far). Linkedin. South African Airways SWOT Analysis South African Airways Strengths Below are the Strengths in the SWOT Analysis of South African Airways: 1. In North Africa, EgyptAir, Royal Air Maroc and Air Algérie have slowed growth or cut capacity in recent years. This includes the lifting of restrictions on market access and on ownership and control, in addition to harmonising safety and security regulations. The seats associated with all these MAX aircraft equate to 15% of Royal Air Maroc’s current fleet seats, so would represent a significant boost to capacity if they all entered service in 2020. …and manage its portfolio of subsidiary and associate airlines. The Board of Airline Representatives of South Africa (BARSA) represents the interests of its African and International members to government, airport operators and other stakeholders in the airline industry with the aim of facilitating and further developing a safe, efficient and viable aviation industry in South Africa. Zo’o Minto’o estimates that a $20 billion stimulus package, at the very least, would be required to aid the industry back into the sky as it was before the pandemic struck. The country has been on the top tourist destinations in the African continent with approximately 10.5 million arrivals recorded in … In the circumstances this appears a sensible, if last gasp, decision. That puts at risk 252,100 South African jobs and $5.1billion (about ZAR 93bn) of South Africa’s GDP, which is generated by aviation directly and air transport-dependent tourism. Ethiopian Airlines’ 2019 capacity is up by 11.0% – the fastest growth among Africa’s top 10 airlines. Safair’s capacity is up by 31.0% in 2019, whereas Mango’s and Kulula’s growth have slowed. While some simply refer to their country of origin, others are more creative. However, trade is expected to rebound strongly next year, which will be supportive for air cargo volumes in 2021. LCC share of total seat capacity in Africa will increase to 17.5% in 2019, from 16.1% in 2018, and has almost doubled over the past decade. Headquartered in Airways Park at O. R. Tambo International Airport in Johannesburg, the airline operates a hub-and-spoke network, linking over 40 local and international destinations across Africa, Asia, Europe, North America, South America, and Oceania. Use this template to analyze the internal and external factors affecting the aviation industry.--You can edit this template and create your own diagram.Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. The airline industry is an incredibly diverse one, and this fact also applies to the names of carriers themselves. Lift Beats 25,000 Suggestions As Name Of New South African Airline. An Economic Analysis of the Low-Cost Airline Industry. WHO regional chief Matshidiso Moeti has warned of a “certain underestimation of cases” due to test kit shortages and the tendency to test only symptomatic patients. Three of the five leading LCCs – Safair, Mango and Kulula – have operations wholly within domestic South Africa, making them the leading truly African LCCs. Africa underperforms on a number of measures. In the first five years of the past decade, real GDP growth averaged roughly 2%. The airline industry is famously turbulent. The past ten years have seen a host of changes in the aviation industry, from airline bankruptcies to volatile fuel prices to the rise of low-cost airlines. The roots of Africa’s underperformance in aviation are complex and closely related to its macroeconomic underperformance. 0. Kenya Airways has ambitions to double its fleet size in five years to 70 (it stands at 36 as at 23-Oct-2019), provided that it can achieve an appropriate financial structure. She would go on to say that, in Africa, tourism is not a luxury but a livelihood for millions across the continent. SAA, which was number one in Africa as recently as 2015, has cut its capacity by 30% over the past five years. He also added, “maybe the time has come for us to consider selling or closing down South African Express”. by Jake Hardiman; October 29, 2020; 14 shares 14. Although three times the active fleet in the first lockdown at the end of Apr-2020, this is 14% down from the Aug-2020 recovery peak. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit EgyptAir’s seat capacity is growing by 5.6% in 2019 and 5.9% in winter 2019/2020, after stagnating for much of the past 10 years. Indeed, it aims to grow the fleet to more than 100 by 2027. Both are growing seats in Africa by at least a quarter in 2019. Analysis; Opinion; History; Deals; Email Sign Up Search for: Search . SWOT analysis of South African Airways analyses the brand/company with its strengths, weaknesses, opportunities & threats. For more of my writing, please see my blog/website. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. “As we are going to open… we are also now pushing for intra-African tourism,” Abou-Zeid says. We cut through the noise for you. Royal Air Maroc’s capacity is up by 3.3% in 2019 and 5.4% in winter 2019/2020. Economics Middle East & Africa November 2020 How airlines are managing pandemic-related workforce reductions Weaknesses of Airline Industry. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. “We are talking here about $55 billion lost within three months in a year when we were supposed to see an increase in travel and air transport.”. African aviation’s recovery will be weaker than expected, according to IATA, and reach just 30% of 2019 levels. Johannesburg – 30 May 2020: South African Airways (SAA) has secured approvals during the South African national lockdown, which saw the closure of borders, to operate repatriation flights to and from several international destinations.The airline further encourages the use of its portal for those interested in the repatriation flights. Jetzt gehe es um 'Pflege und Instanhaltung', heißt es. Email. It also has the second smallest ratio of intra-regional to intercontinental seats (after the Middle East, where transfer traffic boosts intercontinental capacity). Ethiopian’s 2019 seat numbers are more than 3.5 times its 2009 capacity. As the priorities and expectations of travelers and consumers begin to shift, so too will the industry. In the hope that this will be the last bailout and accelerate the process of gaining equity partners, national treasury chief director of liability management Tshepiso Moahloli announced on 31-Oct-2019 that the government will provide a USD600 million subsidy over three years. Africa’s travel and tourism industry have lost $55 billion due to the closure of borders across the continent in attempts to stave off the spread of the novel coronavirus. Air Algérie’s growth has slowed, but it may order new aircraft. in 2020 indicating a steep decline in air cargo volumes. The impact of COVID-19 on airlines is pushing the industry into new territory, beyond contingency and worst-case scenario planning. South African Pharmaceutical Industry Analysis 2020, with Profiles of 122 Companies Including Cipla, Sanofi and Novartis Published 23 Dec 2020 Dublin, Dec. 23, 2020 (GLOBE NEWSWIRE) -- "The Pharmaceutical Industry in South Africa 2020" report has been added to … Kenya Airways en route to nationalisation. There can hardly be another reprieve for this once great airline. Although, and only time will tell, there is a new glimmer of hope that South African Airways can regain some of its former significance in the region. It is at only 25% of 2019 levels in the week of 25-Jan-2021, the lowest since Jun-2020. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air … In addition to these four, the list of top 10 airlines by 2019 seats in Africa also includes two others based in the continent: fifth placed Air Algérie and eighth ranked Kenya Airways. Underperformance will continue, pending the Single African Air Transport Market. Video gallery. IT News Africa – Up to date technology news, IT news, Digital news, Telecom news, Mobile news, Gadgets news, Analysis and Reports, African Airline Industry Lost $55 Billion from COVID-19 Lockdowns, Xiaomi Unveils Device with Quad-Curved Waterfall Display, Sony Ships 4.5 Million PlayStation 5 Consoles Worldwide, Facebook and Instagram Now Remind Users to Wear ‘Face Coverings’, Huawei Unveils the Watch GT 2e Smartwatch, MTN Launches Supersonic AirFibre in South Africa, Airtel Africa and Telkom Under Investigation by the Communications Authority of Kenya, Jambo Pay to Use Virtual Mobile Network in Kenya, How to Establish a Digitally Inclusive Economy Through Technology, MediaTek Helio G95 to Power Gaming Devices in South Africa, Microsoft Introduces New Employee Experience Platform. The loss-making airline has no outstanding aircraft orders but is focusing on increasing aircraft utilisation. Its winter 2019/2020 schedule sets out a 3.4% capacity increase, but it has no aircraft deliveries due in 2020. Four non-African airlines are in the continent’s top 10. This highlights the relatively small scale of intra-African routes compared with intercontinental routes and the challenge faced by African airlines in competing with airlines from elsewhere on routes between Africa and other regions. Africa’s underperformance looks set to continue, pending the slow implementation of the Single African Air Transport Market. New South African airline to fly even as crisis grips industry Lift, owned by a leasing company Global Airways, will operate three Airbus SE A320 jets Published: December 06, 2020 08:34 Bloomberg The airline has been loss-making throughout this period (and longer) and undergoing a restructuring programme. It favours Boeing (787 MAX and 737 variants) and Embraer, and has been considering a narrowbody order. South Africa is the hardest-hit country in sub-Saharan Africa, accounting for a third of total numbers in the region. The Changing Face of … Airline seat capacity in Africa is up by 4.3% in 2019, according to data from OAG Schedules Analyser (the source for all capacity data in this report). FACEBOOK TWITTER LINKEDIN By Elvis Picardo. If you look at the technological development, the engineers are building new big and sophisticated airplanes. All rights reserved. Luis Monzon - July 3, 2020. EgyptAir has returned to growth after a decade of stagnation. At the G20, it was found South Africa is low-risk for investors looking to breakthrough. Journalist Intern at IT News Africa. It is to be hoped that it will. South African Airways to end; true independence & clean balance sheet crucial for new airline . More could follow suit. The majority of this website will not function as intended without JavaScript enabled. Many African airlines have now gone into administration. Airline revenues from Southern African countries are forecast to decline by 60% in 2020 and the number of passengers to fall by 58%, according to the International Air Transport Association (IATA). EgyptAir expects 21 aircraft deliveries in 2020, more than one third of the number of aircraft in its current fleet (63). There are tentative signs of a return to growth, with a 3.0% increase in seats planned for winter 2019/2020, but SAA has no aircraft on order and its financial challenges remain significant. The … EgyptAir has been considering increasing its 60% stake in Air Cairo to take full control, with a view to converting the airline into an LCC. South African Airways plans to lay off its entire workforce after failing to persuade the government to provide more financial aid, a move that threatens … PESTLE or the External Environmental Analysis of industries and companies that operate globally is a useful methodology to analyze the external environmental factors. Dienstag 29.09.2020 20:00 - Börse Online. The Union’s project, the Single African Air Transport Market, which has 28 signatory nations, is aimed at liberalising the aviation market across the continent. African Airline Industry Lost $55 Billion from COVID-19 Lockdowns. AGA 52 – Panel 2: A New Dawn, Can we Rewrite the Narrative of Air Transport in Africa? The response to challenges faced by other, loss-making, national airlines ranges from proposed privatisation (South African Airways) to proposed nationalisation (Kenya Airways). A consortium of banks owns 38.1%, Air France-KLM owns 7.8%, and the balance is listed on the stock exchange. This time is the turn of Cathay Dragon (once known as Dragonair), a subsidiary of Cathay Pacific that operated throughout Asia. Senegal is set to re-launch international air-travel from 15 July. The hospitality industry in South Africa is emerging with rising number of travelers who are visiting the country for business and leisure purposes. Non-African airlines have 40% of all seats. A decade ago, Ethiopian was ranked fourth and South African was number one, but the two have since swapped places. “The impact is really severe,” says Amani Abou-Zeid, Commissioner for the African Union during a virtual briefing organised by the World Economic Forum and the WHO on Thursday. It has also been linked with possible investments in South African Airways and Angola’s TAAG. Ethiopian Airlines to continue robust growth…. Airlines that operated as subsidiaries of major groups have been among the most affected by closures during this 2020 unprecedented crisis. South Africa currently runs a two-tiered healthcare system, comprising of the public and the smaller, rapidly -growing private sector. IATA estimates that revenues generated by airlines in the South African market will fall by $3 billion (about ZAR55 billion) in 2020, 56% below 2019 levels. According to the International Air Transport Association (IATA), Africa is set to become one of the fastest growing aviation regions in the next 20 years with an annual expansion of nearly 5%. Die Rettungsversuche für die Airline South African Airways sind gescheitert. 2020 marks the beginning of a new decade, and what could be a new era in the aviation industry. Gap analysis survey 2 • Overview: Air Transport in Africa • Gap Area 1: Connectivity • Gap Area 2: Market Share of African Airlines • Gap Area 3: Capacity Utilization of Airlines • Forecasts Structure of preliminary analysis 3. There are also four non-African airlines: Emirates at number six, Air France in seventh, Saudia at number nine, and British Airways in tenth place (BA’s capacity in Africa includes that operated by the South African operator Comair under franchise). Copyright © 2021. Non-African airlines have 40% of all seats within Africa and more than 70% of seats on intercontinental routes. Many live in fear of petty crimes, regional wars, and abductions. 44 mins ago. ​ As of now, the continent has recorded more than 420,000 COVID-19 cases and over 10,000 deaths. However, work is needed to implement the project, so there could still be a long time before its benefits are fully felt by Africa’s air travellers. The impact of the pandemic on the passenger side is more severe Air Mauritius, South African Airways, South African Express, and South Africa’s Comair have all already gone under. It has the fewest annual seats, the smallest fleet of narrowbody and widebody jets, the lowest number of aircraft on order, and weakest passenger load factor of all world regions. Finance Minister Tito Mboweni provided the justification for this latest intervention: SAA “is unlikely to ever generate sufficient cash flow to sustain operations in its current configuration” and there are “conversations involving South African Airways and potential equity partners, which would liberate the fiscus from this SAA sword of Damocles”. Source: ICAO Form A and ICAO estimates 5 Total passenger traffic of African Airlines . This gives its airlines only a small base on which to build intercontinental operations in competition with other airlines. Africa has 731 airports and 419 airlines with an aviation industry that supports around 6.9 million jobs and $80 billion in economic activity. The African Union, which has 55 member states, aims (among other things) to achieve greater unity and cohesion, to accelerate political and social-economic integration as well as the integration of African economies, and to establish conditions that enable Africa to play its rightful role in the global economy. The article also covers top South African Airways competitors and includes South African Airways target market, segmentation, positioning & … Only three new aircraft deliveries are due in 2020, compared with a current fleet of 56. Air Algérie’s capacity is up by just 0.9% year-on-year in 2019 and actually lower by 9.0% versus 2017, after years of robust growth when it doubled its seat numbers from 2009 to 2017. Flag-carrier South African Airways was in trouble even before the pandemic and remains at a crossroads after years of unprofitability and repeated government bailouts. Underlying most of these issues has been the perpetual and mostly unhelpful government intervention at many levels. The South African government is open to private sector participation in the state-owned airline, once the biggest in Africa, which has relied on successive public sector bailouts. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit Skip to main content. Mainframe Market by Type and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018–2025 April 2019 $ 3840 Consumer Lifestyles in Russia December 2018 $ 2100 Airline Booking Platform Market to 2027 - Global Analysis and Forecasts by Type, by Application December 2019 Airlines industry in South America is forecast to generate a $700 million net profit in 2019 (up from $400 million in 2018). The small scale of Africa’s internal market is a function of many factors, not least infrastructure and aeropolitical restrictions. Annual seat count actually dropped by 13.4% from 2012 to 2018, when demand was dampened by geopolitical and macroeconomic concerns surrounding Egypt. 0. Facebook. This was the biggest year-on-year fall in demand since the association (the representative body of the global airline industry) started keeping records of air cargo demand, in 1990. Overview: Air Transport in Africa 4. Find below previous AFRAA videos. South African Airways is cutting its seat numbers by 3.0% in 2019 – its fifth successive year of capacity cuts. WhatsApp. 3 minute read; Advertisement: The airline industry is an incredibly diverse one, and this fact also applies to the names of carriers themselves. In the first eight months of 2019, Africa’s passenger load factor was 71.9%, versus a global average of 83.0% and the next lowest figure of 76.9% for the Middle East. 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