African airlines set for major competition

  1. Posted on Thursday 26 November 2009 - 09:00
    Sanday
    Image of Sanday
    Sanday Chongo Kabange AfricaNews reporter in Lusaka, Zambia
    South African airlines will for the first time face direct competition from Air Namibia on certain African routes after it was granted fifth-freedom rights by the respective governments. The rights allow Air Namibia to pick up passengers and cargo in Johannesburg before proceeding to a third destination.
    nationwide_airlines
    The granting of fifth-freedom rights is a significant step towards liberalisation of Africa's airline industry and gives consumers greater choice.

    The launch of the Air Namibia flights also provides a further challenge to South African Airways' (SAA's) Africa strategy.

    The South African carrier already faces stiff competition from Arik Air on the Lagos-Johannesburg route. In the year to March, SAA's revenue growth, up 4,8% to R17,3bn, was driven largely by growth in its African markets. While SAA recorded an 11% drop in international passengers and a 10% fall in domestic operations, it carried 9% more passengers on its African routes.

    Last week, Air Namibia launched five weekly flights from Windhoek to Accra, with a stop in Johannesburg, providing the only direct flight to the Ghanaian capital from South Africa. It also recently started five flights to Lusaka, Zambia, with a stop in Johannesburg.

    "Air Namibia has been operating double daily flights between Windhoek and Johannesburg, which have now been adjusted to allow smooth connections to both Lusaka and Accra," Air Namibia spokeswoman Hellena Kapiya- Nathinge said, according to South Africa’s Business Day Newspaper.

    There are no limits on the number of passengers or amount of cargo it can pick up.

    Chris Zweigenthal, CEO of the Airlines Association of Southern Africa, said that while the Yamoussoukro Decision, a commitment signed by African governments in 2000 to liberalise the African skies, had so far achieved little, it was clear some countries were implementing the principles of the accord on their own.

    "It is a major step forward to liberalisation and can only benefit the countries involved," he said.

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