AIRLIFT STRATEGY PRESENTATION TO INDUSTRY GROWTH & SAFETY CONFERENCE: DATE: NOVEMBER 2014
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1 AIRLIFT STRATEGY PRESENTATION TO INDUSTRY GROWTH & SAFETY CONFERENCE: DATE: NOVEMBER 2014
2 Table of Contents Section 1 Section 2 Section 3 Section 4 INTRODUCTION & EXECUTIVE SUMMARY OBJECTIVES MANDATE STRATEGY Section 5 AIRLIFT PROGRESS Section 6 AIRLIFT REVIEW PROCESS 1
3 INTRODUCTION & EXECUTIVE SUMMARY Airlift Strategy was approved by Cabinet in July 2006 A holistic view of the international air transport network in support of South Africa s national interests is a key element of the Airlift Strategy. Analysis of existing BASA and Gap Analysis RSA government role in the aviation industry is one of principle enabler and regulator. 2
4 Rationale for Strategy Review First term expired June SA now member of BRICS. New Priorities - National Development Plan Fight inequality, poverty & unemployment. Meeting of SADC Ministers responsible for Transport & Meteorology ICAO Worldwide Conference
5 Review Process : Internal task team did preliminary review. Workshop involving government and all stakeholders in Two workshops with govt & industry in Important lessons from first phase. Impact assessment from last 5 years. Inputs from individual stakeholders. Projections from relevant global organisations. 4
6 Developments & Lessons Learned SA 64 th competitive out of 140. Good air transport network 14/ rd competitive in Sub Saharan Africa. Transit visas were introduced. Three airlines folded. Only 30 states agreed to YD. No common approach to EU hor. agreement. 5
7 Impact Assessment Tourist arrivals increased from 7.4 million in 2005 to 13.5 million in Contribution to employment increased from 6.9% in 2002 to 10.2% in Contribution to GDP increased from 7.1% in 2002 to 9.8% in Number of international airlines serving SA market has stabilised at around 26. 6
8 Projected Regional Growth % Growth Intra-Africa S. America M. Eeast Europe N. America A. Pacific 7 0 Intra-Africa S. America M. Eeast Europe N. America A. Pacific
9 Comparison of SAA with African and BRICS Airlines 8
10 Strategic Goals: Promotion of sustainable aviation industry. Promotion of trade and tourism. Enhancing fair competition & customer choice. Growth & development of aviation sector. Regional and international cooperation. 9
11 Strategic Objectives Contribution towards economic growth & job creation. Promote SA as preferred air travel destination. Develop guidelines for specific markets. Synchronisation with other national priorities. Encourage common sense of purpose. 10
12 Strategic Pillars of Strategy Enabling Policy and Legislation. Enhancing Air Links with other Regions. Fair Competition. Airline Cooperation. Consumer Protection. Sustainable Aviation Sector. Air Carrier Ownership & Control. Safety and Security. Participation in National Campaigns. 11
13 Policy and Legislation Ensure multiple designation of airlines. Amend legislation to provide for use-it or lose-it principle. Engage AU & SADC for speedy implementation of YD. Engage SADC & AU for approach to EU Horizontal Agreement. Finalise White Paper on Aviation Policy. 12
14 Enhancement of Air Links Capacity ahead of demand through managed liberalisation. Focus on YD and intra-africa services. Support finalisation of COMESA-EAC-SADC Joint Competition Authority. Synchronise plans with SA Tourism and other government departments. Maximise SA membership of BRICS. Maximise SAA membership of Star Alliance. 13
15 Level Playing Field on Tariffs and Pricing Ensure double disapproval tariff policy. No tariff regulation on domestic services. Apply YD rules on intra-africa services. Monitor tariffs on monopolistic and duopolistic int l routes. Enter MOU with competition commission. Cabotage should not be granted. 14
16 Airline Cooperation and Consumer Protection Conduct economic study on impact of alliances and code-sharing. Careful consideration of bilateral code-sharing on matured routes. Ensure passenger rights in code shared services are guaranteed. Ensure consumer protection in cases of bankruptcy and insolvency. Facilities for passengers with special needs. 15
17 CAPACITY INCREASES The Department of Transport continued to implement the Airlift Strategy and created capacity in air traffic increases as follows: S America: Brazil Europe: France 14 UK Netherlands Luxembourg 7 Ukraine 7 16
18 CAPACITY INCREASES AFRICA: Senegal YD YD YD Kenya YD YD YD Cameroon YD YD YD Nigeria 10 Botswana 10 Burkina Faso YD Burundi YD Niger YD South Sudan YD 17
19 CAPACITY INCREASES AFRICA: Eritrea YD Mozambique Seats Mali YD DRC 9 Nigeria 13 Mozambique Seats Tanzania 28 Seychelles YD Gabon YD 18
20 CAPACITY INCREASES ASIA: Japan 7 Korea Australia New Zealand 7 India Pakistan 7 Singapore 17 China 14 Viet Nam 7 19
21 CAPACITY INCREASE ASIA: Sri Lanka 7 Maldives 7 Philippines 7 Middle East: UAE
22 WAY FORWARD Open Skies - Secondary and Private owned airports YD Fifth Freedom Rights >> Intra-Africa Cabotage Rights will not be granted Ownership and Control of Airlines Use it or Loose it Principle (Amend Legislation) Airline Alliances & Code Sharing DOT Web based air services status report 21
23 Thank You
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