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AFRICAN AIRLINES ASSOCIATIONA F R A A ’ S P A N A F R I C A N J O U R N A L O N A I R T R A N S P O R T
N o . 1 4 A u g - O c t 2 0 1 1
AFRICAN AIRLINES ASSOCIATION
!
43rd Annual General Assembly holds in Marrakech, Morocco
The African Airlines Association (AFRAA) and its entire membership wish to
announce that the 43rd Annual General Assembly and Conference will be held in
Marrakech, Kingdom of Morocco from 20-22 November 2011.
The event will be hosted by Royal Air Maroc.
The AFRAA Annual General Assembly is the biggest air transport conference on
the continent of Africa bringing together Chairmen and CEOs of African Airlines,
top executives of aircraft and engine manufacturers, spare parts and component
suppliers, ICT equipment and solution providers, distribution companies as well as
leasing, financing, MRO, training and consultancy organisations.
For sponsorship and exhibition opportunities, please contact:
jindetie@afraa.org or telephone +254-20-2320144/8 for details.
More information about the registration, hotel accommodation as well as air travel
arrangements will soon be available on the AFRAA website: www.afraa.org
August-October 2011 1
foreword
consultative and commensurate with the cost of providing the service.
Fleet need to be modernized to meet African aviation carbon footprint
obligations, reduce cost and improve efficiency. Therefore, those States
that have not yet acceded to the Cape Town Convention and Protocol
should do so to reduce the cost of financing aircraft acquisition by
airlines. States should also remove unnecessary barriers to free
movement of people and goods on the continent as well as fully
implement the Yamoussoukro Decision to facilitate the rapid
development of African air transport. States should further allow free
movement of capital across borders to speed-up consolidation and
mergers in the industry so that airlines can reap economies of scale and
raise additional capital.
Safety is a major issue in some States. The efforts by ICAO and AFCAC
to enhance safety by, among other things, facilitating the development
of regional safety oversight organizations and the setting up of AFI
Cooperative Inspection Scheme, human capital development and other
programmes are laudable as they enhance the safety oversight capacity
of States. Countries on the EU list of banned airlines including the DRC
(that is responsible for most accidents which tarnish the image of the
continent) need to take advantage of these initiatives.
AFRAA will vigorously implement its 3 year business plan whose thrust
is to encourage cooperation among airlines, reduce costs and enhance
revenues through joint projects. Working in partnership with
organizations like ICAO, IATA, AFCAC and ACI Africa, AFRAA hopes to
enhance safety on the continent, uplift the image of African aviation,
develop human capital and continue its lobbying efforts aimed at
promoting the development and sustainability of the industry.
The year 2011 started on a very
optimistic note for the aviation
industry following a good
2010 where record profits were
realized worldwide including in Africa.
This optimism started to wane with
the political upheavals in North Africa
and the Middle East in February, the
Japanese earthquake, tsunami and
the consequential nuclear crisis,
which disrupted general business including air travel. The series of
unfortunate events were made worse by the steep rise in the price of oil.
The result is, according to IATA, a reduced global profitability forecast
from about $8 billion to $4 billion and a loss of about $100 million for
Africa in 2011.
Africa still suffers from some unique challenges. These include: the
small size of most airlines; brain drain arising from predatory poaching
of highly experienced professionals from African airlines mainly from
resource endowed aviation entities in the Middle East; dilapidated
infrastructure at some airports; safety concerns in some States
particularly the DRC, and relatively high costs as well as high taxes and
charges. The DRC with its perennial accidents which over the last six
years has resulted in over 25 fatal accident and a loss of over 360 lives
has the effect of negatively tarnishing the whole of the continent’s
aviation industry and providing a pretext for the EU to blacklist African
airlines including those with very good safety records such as LAM
Mozambique Airlines and Air Madagascar (see our feature on the DRC
accidents).
However, plenty are the opportunities that African carriers can exploit.
Africa has a population of over a billion people, underserved domestic
and regional markets particularly in West and Central Africa and
generally good yields. The average load factor in 2010 was 69%, much
lower than world average of about 76% providing an opportunity for
carriers to acquire the right aircraft specifically suited to the regional and
domestic markets which holds the highest growth potential.
To exploit the many air transport opportunities on the continent, it is
imperative that operating costs are reduced and therefore Governments,
airports and air navigation service providers have to charge more realistic
prices for their services to allow the aviation industry to grow and widen
the market base. In this regard, charges must be transparent,
Taking Advantage of Opportunities
Dr. Elijah Chingosho
AFRAA Secretary General
Africa Wings2
contentsAFRICAN AIRLINES ASSOCIATIONA F R A A ’ S P A N A F R I C A N J O U R N A L O N A I R T R A N S P O R T
N o . 1 4 A u g - O c t 2 0 1 1
4
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10
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4 Very High Aviation Taxes and Charges in AfricaIn order to realize the huge potential existing in the continent, all stakeholders need to work together to reduce the cost of travel.
8 D.R. Congo Must Take its Safety Responsibilities SeriouslyAuthorities should have zero tolerance to unsafe operations.
10 RwandAir Dares to DreamIf dreams can come true, then RwandAir might just be in for a bright awakening.
13 AFRAA Diary
17 Capturing Revenue from Consumer SurplusIts no secret to any airline: The key to profitability is cutting costs while enhancing revenue.
19 News Briefs
22 Rebirth of a Legend South African AirwaysIt is no surprise that SAA have been voted such prestigious awards as ‘Best Airline to Africa’.
Africa Wings is published quarterly for AfRAA by
Camerapix Magazines Limited
Correspondence on editorial and advertising
matters may be sent to either of these addresses:
Editorial and Advertising Offices:Camerapix Magazines Ltd.
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London, N14 5LPTel: +44 (20) 8361 2942, Mobile: +44 79411 21458
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Printed in Nairobi, Kenya.
©2011 CAMERAPIX MAGAZINES LTD
All rights reserved. No part of this magazine may be reproduced
by any means without permission
in writing from the publisher.
Publishers:
Editorial Director:
Managing Editor:
Copy Editor:
Senior Designer:
French Translation:
Production /Advertising:
Camerapix Publishers International Limited
Rukhsana Haq
Raphael Kuuchi
Roger Barnard
Sam Kimani Ephrem Kamanzi
Azra Chaudhry (UK)Rose Judha (Kenya)
August-October 2011 3
CAG-065-11_AfricaWings@ol.ai 1 28/3/11 3:03 PM
Africa Wings4
Very High Aviation Taxes and Charges in Africa
Faced with fierce competition from within and outside the
continent and airline owners and investors demanding more
and more reasonable return on their investment, managing
and reducing costs and improving efficiency have become critical to
the survival and sustainability of African carriers. On the other hand
African national carriers can no longer rely on the support of their
governments alone to ensure their survival and sustainability.
Unfortunately, in many of the important areas of cost, African airlines
have either no control or have very little influence. This is because
some of these costs, like air transport related taxes and charges, are
imposed by governments or monopoly service providers which allow
little opportunity for a meaningful participation of carriers in the
process of determining the level of taxes and charges.
It is not unusual in most African countries that not only airports are
monopolies but also aircraft fuel is supplied by single supplier. The
absence of adequate regulatory oversight over monopoly service
providers in many countries have compounded the problem leading
to unjustifiably high costs to the air carriers and passengers. In
addition the perception of high risk of the continent has given
insurance companies and airlines financiers a reason to impose
significantly higher fees.
By Tewodros Tamrat,
Director of Government, Corporate & Industry Affairs, AFRAA
In order to realize the huge potential existing in the continent, all stakeholders need to work together to reduce the cost of travel.
August-October 2011 5
Very High Aviation Taxes and Charges in Africa
High Taxes and ChargesDespite the critical role that air transport plays and its significant contribution to the economies of African countries, governments’ policy
makers continue to view air transport as a luxury service for the elite. As a result, many African governments have tended to burden airlines
and airlines users with high taxes and charges. This is so despite the fact that airlines across the continent are in critical financial crisis and
struggling for survival.
It is generally true that taxes and charges are relatively high on the African continent, in comparison to other regions and relative to the
quality and availability of services and facilities. Figures 1 and 2 show the various passenger related taxes and charges that are applicable
at some African airports. Attempt is made to compare these taxes and charges among African destinations with taxes and charges at
airports in certain selected countries outside Africa.
Figure 1: Passenger Taxes and Charges (US$) at 36 African Airports, Highest to Lowest
No Airport Int Reg1 No Airport Int. Reg2 No Airport Int. Reg3
1 Ambouli (Dijibouti) 85.89 68.71 13 Entebbe 40.00 20.00 25 Durban 26.18 19.82
2 Accra 75.00 50.00 14 Kinshasa 30.46 30.46 26 Conakry 30.00 25.00
3 Malabo 68.02 46.86 15 Dakar 38.84 38.84 27 Johannesburg 26.18 19.82
4 Abidjan 64.73 25.89 16 Lagos 35.00 35.00 28 Antananarivo 25.84 25.84
5 Ouagadougou 58.24 38.83 17 Harare 35.00 35.00 29 Bujumbura 25.00 25.00
6 Moroni-Hahaya 52.89 11.50 18 Bamako 32.37 32.37 30 Addis Ababa 25.00 25.00
7 Mahe Seychelles 50.00 50.00 19 Monrovia 30.00 30.00 31 Lusaka 25.00 25.00
8 Windhoek 48.17 24.57 20 Maputo 30.00 30.00 32 Cotonou 23.74 14.03
9 Bangui 43.17 21.59 21 Kigali 30.00 30.00 33 Yaoundé 22.66 12.95
10 Libreville 43.14 21.57 22 Dar es Salaam 30.00 30.00 34 Douala 22.65 12.94
11 Nairobi 40.00 40.00 23 Brazzaville 26.43 26.43 35 Saint Denis 22.41 15.88
12 Freetown 40.00 40.00 24 Cape Town 26.18 19.82 36 Niamey 21.58 21.58
IATA Airport, ATC and fuel Charges Monitor.
(Footnotes) 1, 2, 3 Regional (Reg.) passengers means depending on the country a passenger who is travelling either within the continent or Sub-regional Economic Community.
International Passengers departing from 13 African Airports are charged between US$ 40 to US$ 85. Included in this group are major
destinations such as Accra, Abidjan, Ouagadougou, Nairobi and Entebbe. Djibouti has the highest charges at US$ 89 per passenger (departing
and arriving). At another 9 airports passengers are charged US$ 30 to US$40. These include Dakar (US$ 38.84), Lagos and Harare
(US$ 35), Maputo, Kigali and Dar es Salaam (US$ 30). On the other hand Addis Ababa and Johannesburg, passengers are charged US$ 25 and
US$ 26 respectively (At some destinations a different rate is indicated for regional passengers that are generally lower than for international
passengers).
Though these numbers are telling one cannot conclude based on the numbers alone whether they are justified or not. However, it is also
difficult to easily discern any logical correlation between the level of charges on one hand and the level of services, facilities and infrastructure
available at some of the destinations that justify such high level of charges.
To see how African airports stand in comparison to other regions below (figure 2) shows taxes and charges at selected destinations in
the various sub-regions against a selected airports outside Africa. Four countries from each of the four African sub-regions are taken and
compared with countries selected from 3 other regions (Middle East, Asia/Pacific and Europe). With the exception of North African countries the
majority of selected African airports charge passengers significantly higher than the selected airports in the other regions.
economics
Africa Wings6
Figure 2: Passenger Tax and Charge Comparison at Selected Airports
Southern Africa West Africa East Africa North Africa
AirportTax/
ChargeAirport
Tax/Charge
AirportTax/
ChargeAirport
Tax/Charge
Luanda 20.00 Kinshasa 30.46Addis Ababa
25.00 Cairo 15.00
Maputo 30.00 Accra 75.00 Nairobi 40.00 Tripoli 04.89
Johannesburg 26.18 Lagos 35.00 Kigali 30.00 Casablanca 15.18
Lusaka 25.00 Dakar 38.84 Entebbe 40.00 Khartoum 12.54
Middle East Asia/Pacific Europe
Airport Tax/Charge Airport Tax/Charge Airport Tax/Charge
Muscat 13.20 Mumbai 05.70 Paris – Charles de Gaulle
13.53
Dubai 20.42 Singapore 11.16 Frankfurt 29.81
Beirut 34.00 Guangzhou 10.72Roma Fiumicino
10.95
The figures above are based on figures from the IATA Airport, ATC and fuel Charges Monitor.
Airports in West African region have highest charges, with Accra Akwaaba International Airport topping the list with US$ 75 per passenger followed
by Entebbe and Nairobi with US$ 40 closely followed by Dakar and Lagos at US$ 39 and US$ 35 respectively. Passengers in North African
airports enjoy the lowest passenger taxes with Tripoli charging US$ 5 followed by Khartoum, Casablanca and Cairo (US $ 12-15). However, generally
passengers departing from the selected African airports pay higher than passengers departing from Middle East and selected European airports,
Beirut being the exception.
Effects of Taxes, Charges and Fees on Ticket CostWhatever the type of charges and fees, whether they are directly collected from the passenger or the airline, it all adds up to the cost of travel which
ultimately will be borne by the passenger as the airline will pass on these charges to the passengers as cost of ticket. Airlines may use different
methods to allocate various costs to ticket prices on various routes, however in the end it will be passed on to the travelling passengers.
ConclusionsAfrican airlines need to engage with airports and other relevant organizations and authorities to address the issue of high taxes and charges
with the view to understand the reasons and where necessary to get them to reduce these charges. This has to be collaborative effort among
all stakeholders. What is clear is that with the current cost structure African carriers will find it very difficult to survive in the increasingly fierce
competition and withstand the forces lined-up against them that are increasingly marginalizing them from the international routes. This is only a
prelude for the continent to be completely driven out from the air transport industry including intra-African routes. It is to the common interest of all
stakeholders including airports, fiscal authorities, regulators and regional continental organizations such as the AU, AFCAC, ACI Africa and AFRAA
that indigenous African carriers grow and thrive in the continent and take their rightful market share. African governments and airports need to take
long-term and strategic view.
Many of the carriers that compete with African airlines come from an operating base with significantly low cost giving them the competitive edge.
This also enables the foreign carriers to benefit significantly from the high fare in the African market which reflects the high cost of the African
based carriers who are more exposed to the high cost in the continent, which is their main operational base. In order to realize the huge potential
existing in the continent, all stakeholders need to work together to reduce the cost of travel so as to make it affordable to a larger sector of the
African population who currently are excluded from the use of air transport because of the high fares, among other reasons.
economics
August-October 2011 7
AFRAA chairman awarding AIS President
GSE
When AOG strikes, is the solution. www.aeroindustrialsales.com
Mohammed Mahmoud
AIS, a distributor of commercial aircraft spare parts and GSE, has taken the steam out of AOG (Aircraft on Ground) problems. This is because we are ideally located at the hub of the aviation
industry: the JFK International Airport, New York. Rare exceptions aside, we make our AOG worldwide delivery within 24 hours.
Whether your need is for basic STANDARDS or Major Components for any �ying BOEING Commercial airplane,
say from the Classic 727 to the latest 777; a GSE of a small baggage tractor or a giant wide-body towbarless push-back; whether you are a
National Carrier or Cargo Airplane Operator, AIS, with the state-of-the-art Quality Control System and Accreditation, is your ONE-STOP SOURCE that can meet your AOG or routine demands. For those of you who
already use our services, this is our commitment as ever; for our yet-to-come friends, please try us.
Of course, we also invite you to browse through our web-site: www.aeroindustrialsales.com
Africa Wings8
D. R. Congo Must Take it's Safety Responsibilities Seriously
Following the 8 July 2011 crash that saw the loss of over 80 lives the African Airlines Association (AFRAA) expressed its concerns
about the spate of accidents in the D.R. Congo. According to AFRAA, although the cause of the accident is yet to be established, this
is one of many accidents that have taken place in the DRC in recent years. The aircraft involved was over 45 years old. Under normal
circumstances, the age of an aircraft should not matter as long as it is properly maintained, but in a country with poor safety oversight and
shortage of adequately skilled personnel, such aircraft should never have been allowed to operate. Out of a total of four fatal accidents in
Africa so far this year, three have taken place in the DRC.
Safety Record of the DRCIn just over six years from 2005 to 2011,
the DRC has consistently recorded
accidents every year. A total of 25 fatal
accidents have occurred in that country in
the last six years according to statistics
available on the website of Flight Safety
Foundation, with 366 fatalities. These
figures clearly show that the authorities in
the DRC are not taking their safety
oversight responsibility seriously. There is
no indication that there are serious efforts
being made to improve such a poor safety
record.
The DRC needs to appreciate that the poor
safety record in that country taints the
safety record of the entire continent. What
may be viewed as a local safety problem
has implications for higher aircraft
insurance premiums for all African
operators. In addition, they have the
tendency to discourage people from flying
African airlines and thereby negatively
impacting the competitiveness of the world
class airlines on the continent. Regrettably,
such accidents are being used by the EU
as a pretext to ban some African airlines to
serve the commercial interests of EU
carriers in Africa.
Assistance to Improve Safety is Available To improve safety on the continent, industry
stakeholders have come up with tailor-
made programmes, including capacity
development assistance to States that are
serious about improving their safety
oversight. ICAO and AFCAC have made
available several technical assistance
programmes to improve safety oversight
capacity of countries and to help address
the issue of inadequate skilled manpower
and infrastructure. ICAO and AFCAC have
also actively promoted the setting up of
Regional Safety Oversight Organizations
designed to facilitate regional cooperation
and help States such as the DRC overcome
their safety deficiencies. AFCAC has come
up with the AFI Co-operative Inspection
Scheme to avail the necessary expertise to
assist States address some of their
manpower deficiencies. Several States
worldwide have availed technical assistance
to African States willing to improve and
maintain world class safety standards and it
appears that the DRC has so far not taken
advantage of these assistance
programmes.
Safety Requires Commitment In the view of AFRAA, once a State has the
will to adopt industry best practices in
safety, it can be achieved. For example, in
the early 2000s, both China and Russia
had poor safety records. However, these
countries were determined that things had
to change and within a short period, these
countries attained world average safety
standards. Nearer home, Nigeria used to be
among the African countries with very high
accidents rates. However, the Government
came up with a series of decisive measures
including limiting the age of aircraft imported
into the country for civil air transport services
and creating an autonomous civil aviation
authority with the power to carry out the
necessary oversight of all civil aviation
activities in the country. Under the visionary
leadership of Dr. Harold Demuren, Nigerian
civil aviation has witnessed a major
transformation in recent years.
DRC’s neighbour, Angola until 2003 used
to record high accident rates but the
Government of Angola took a number of
important measures, including banning the
use of ageing aircraft from the former USSR
in civil air transport services. The country has
since witnessed a dramatic improvement of
safety and the process of modernizing the
fleet started in earnest. It is disappointing
that the country was rewarded by the EU
with the infamous blacklist despite such
commendable efforts.
DRC Authorities Must Act Urgently The relevant authorities in the DRC have to
act as a matter of urgency in the interests of
the whole African aviation industry by
proactively taking steps to improve safety.
Authorities should have zero tolerance to unsafe operations, says AfRAA.
PHOTO courtesy of flightstory.net
August-October 2011 9
The country needs to take immediate and
decisive measures to rectify all the
deficiencies identified through the ICAO
USOAP Programme. Where assistance is
needed, organizations such as ICAO,
AFCAC, IATA and AFRAA are ready to
provide support as long as the Government
is committed and ready to accept its safety
oversight responsibilities. The aviation
industry expects the Government to
immediately withdraw the air operators’
certificates of carriers unable or unwilling to
adopt industry best practices in safety. In
fact, if only DRC and Sudan adopt ICAO
stipulated safety standards, the accident
rates of the continent would go down to
world average levels.
The DRC need not look too far for a recent
example of such decisive and
commendable actions. The Gabonese
Ministry of Transport recently grounded six
of the country’s eight airlines for failing to
comply with ICAO stipulations. This is the
kind of decisive action that will generate
confidence and respect of the entire
aviation community and will help inculcate a
safety culture in African aviation.
AFRAA Recommendations AFRAA recommends that Governments
should require airlines to acquire IOSA
certification before being issued air
operators’ licences. Airlines should be
encouraged to be members of IATA/
AFRAA as a way of ensuring that they are
kept updated on the latest developments
on safety and to access the wide range of
human capital development and other
assistance to improve safety. African
governments should open up Africa to
African operators as stipulated in the
Yamoussoukro Decision and allow cross
border investments in African airlines so that
the carriers can grow and enjoy economies
of scale and be able to afford to put in place
the required safety management systems.
Authorities should have zero tolerance to
unsafe operations.
Safety
Fatal Aircraft accidents in DRC January, 2005 to July, 2011Date Aircraft Type Airline Location No. of Fatalities
2011
1 14 Feb Let L-410 African Air Services Commuter (Congo) Mont Biega 2
2 4 Apr Canadair RJ100/200/ 700 United Nations - UN Kinshasa-N’Djili Airport 32
3 8 Jul Boeing 727-030 (WL) Hewa Bora Airways Kisangani-Bangoka International Airport 74
2010
1 25 Aug Let 410UVP-E20C Filair Near Bandundu Airport 20
2 21 Oct Let 410UVP TRACEP (Cargo) Near Bugulumisa 2
2009
1 26 May Antonov 26 (Cargo) Service Air Isiro – Matari Airport, 3
2008
1 15 Apr DC-9 Hewa Bora Airlines Goma 40
2 01 Sept Beechcraft 1900C Air Services International Bukavu 17
2007
1 4 Oct Antonov 26 Malift Air Kinshasa 21 + 28
2 29 Aug Antonov 32 Great Lakes Business Company Near Kongolo Airport 14
3 7 Sept Antonov 12 Transvia Service Goma Airport 8
4 17 May Let 410 Safe Air Company Near Walikale 3
5 21 Jun Let 410 Karibu Airways Kamina 1
6 24 Sept Let 410 Free Airlines Malemba Nkulu 1
2006
1 27 Apr Convair CV-580 LAC-Sky Cargo Amisi Airport 8
2 7 Jul Antonov 12 Mango Airlines Goma 6
3 3 Aug Antonov 28 RACEP Bukavu 17
4 9 Nov Let 410 Goma Air Near Walikale 1
2005
1 31 Mar Antonov 28 (Cargo) Gran Propeller Near Kampene 3
2 5 May Antonov 26 Kisangani Airlift 28 km N of Kisangani, 10
3 25 May Antonov 12BP Victoria Air 10 km from Biega, 27
4 5 Sep Antonov 26B Galaxy Incorporation 1.5 km from Isiro-Matari 11
5 9 Sep Antonov 26B Air Kasai 50 km N of Brazzaville (Congo) 13
6 21 Sep Antonov 2 (Cargo) Panafrican Airways 40 km W of Bukavu 2
7 4 Oct Antonov 12 Wimbi Dira Airways Aru Airport 2
Africa Wings10
The first factory new 737-800 joins the RwandAir fleet on 3 August 2011.
Every day the young national carrier of
Rwanda takes off with indomitable
spirit. The company dared to dream
of a time of prosperity; having overcome the
turbulence of the past, the airline now aspires
to join the ranks of Africa’s more prosperous
carriers.
In 2009, RwandAir began implementing
a critical five-year business plan; hence
the last 18 months or so have been busy
times at the airline. The first task was a
rebranding exercise that led to a change in
name. The airline was previously known as
RwandAir Express – the dropping of 'Express'
was justified by the fact that it gave the
impression of a small point-to-point airline
whereas its management had much bigger
aspirations.
“We want to position our airline as a leading
carrier in the region while at the same
time aggressively marketing our product
overseas. Worldwide today there is massive
excitement about Rwanda as a country and
a destination,” said RwandAir, CEO (Chief
Executive Officer) John Mirenge.
Rightly so; Rwanda is generating interest
from opportunity seekers and tourists after
the long and painful struggle to overcome
the aftermath of political instability of the
1990s. Historically, RwandAir is linked
to its predecessor Air Rwanda that was
established by the government in July 1975.
Air Rwanda operated to several points in
the region as well as a regular Kigali-Ostend
(Belgium) service using a Boeing 707. The
rest of the fleet included two DHC-6 Twin
Otters and a Piper Aztec.
With the onset of the Rwanda genocide
in 1994 the airline was forced to cease
domestic operations whilst reducing its
international network to include only Kigali to
Bujumbura and Entebbe.
Coincidentally, the airline was renamed
as Rwanda Air in 1996 but this was later
changed again to Alliance Express Rwanda
in 1998. The change took effect after a deal
was signed with Uganda-based South
Africa Alliance Air that took over operations
along with 49 per cent equity in the
Rwandan airline.
Despite the reinstatement of services
to cities such as Kinshasa, Nairobi and
Johannesburg after the genocide, Alliance
Express Rwanda was haemorrhaging cash.
The airline posted a reported U$ 4 million
operating loss during the first year under the
new commercial arrangement. To add salt to
injury its Ugandan shareholder, Alliance Air,
shut down permanently in 2002.
An agreement with South African Airways
(SAA) enabled the airline to continue flying
but operations remained unsustainable
and services were wound up by November
2002. RwandAir Express was quickly
established as a replacement and in
March 2009, the airline was rebranded as
RwandAir.
Striking a BalanceSince operations began in 2003, the airline
has operated a range of aircraft. Several
lease contracts were signed over time
including a 737-500 from Maersk Air, an
MD-82 from Jet Africa and a Dash 8 Q200
from Trans Nation Airways of Ethiopia.
RwandAir has now terminated its wet lease
arrangements in favour of striking a balance
between dry-lease and outright purchase.
The airline has pledged that by 2013 it
intends to operate and manage its own fleet.
The process began in early 2010 with the
arrival of two 50-seat CRJ-200s purchased
from Lufthansa. The planes were quickly
deployed on popular routes in East Africa.
RwandAir Dares to DreamBy Keith Mwanalushi.If dreams can come true, then RwandAir might just be in for a bright awakening.
PH
OTO
S c
ou
rtes
y o
f K
eith
Mw
anal
ush
i
August-October 2011 11
feature
RwandAir’s affection for the 737-500
continued with the delivery of two examples
(9XR –WD and 9XR-WE) from GECAS during
the summer of 2010.
The main focus of the fleet strategy now
rests on the arrival of two ultra-efficient
Boeing 737-800s. The first delivery is slated
for 22 August 2011 and the second aircraft
arrives in September. There is a feeling of
pride at the RwandAir headquarters in Kigali
as the new Boeings are being prepared for
delivery.
“The first stage of our fleet expansion
strategy will be complete with the delivery
of the new 737-800s. We have planned to
use them to improve our product offering on
some of our key trunk routes like Dubai and
Johannesburg,” explained Mirenge.
The CEO said that the new 737s join the
fleet at an exciting time for the airline and the
continent , both of which are experiencing
growth in passenger travel. “They will
become the mainstay of our fleet," he
added. RwandAir passengers are the first
in Africa to sample Boeing’s new signature
Sky Interior cabin on the 737 model.
The new jets are the first in the RwandAir
fleet to be fitted with an inflight
entertainment system; they will improve the
on-board passenger experience, especially
on the Johannesburg and Dubai routes.
Operational StrategiesThe airline launched its first intercontinental
service from Kigali to Dubai via the Kenyan
city of Mombasa in November 2010.
A few months into operations and the
airline reports that the route is doing well:
“The response has been very optimistic,
especially from the
domestic market,”
said Mirenge.
“We also continue
to receive substantial
enquiries from
cities like Goma
and Bukavu in
Eastern Democratic
Republic of Congo,
and also from the
Kenyan coast about
our Mombasa
Dubai direct service. The loads are looking
reasonable and forward bookings are very
good. Currently we are doing three flights a
week and if the current trend continues we
will be considering more frequencies.”
Along with the appointment of John Mirenge
as the new CEO last year, the airline began
a process aimed at showcasing a number
of internal and external changes. Mirenge is
adamant that the airline cannot afford to be
left behind.
He indicated that the diversification of the
company’s distribution and payments
system was imperative. Apart from the
traditional sales offices, the website has
been redesigned giving it a fresher and
more sophisticated look, whilst still easy to
navigate. The website will soon incorporate
a new online reservation and multi-platform
payments system.
Regional growth is the primary focus.
In March 2011, the airline kicked off the
expansion drive by launching a thrice-
weekly service to Brazzaville in the Republic
of Congo, at the same time evaluating a
number of destinations west of Kigali with a
view to link Central and West African cities
with East Africa. Brazzaville became the 13th
destination to be added to the RwandAir
network, and it’s first this year. The city is
home to over one-third of the Congolese
population.
From May 2011, the airline introduced
services between Kigali and Libreville, the
capital of the West Central African republic
of Gabon. The thrice-weekly flights were
designed to operate a triangular schedule
between Kigali, Libreville and Brazzaville
with full right to uplift passengers between
Libreville and Brazzaville. Carriers from
Gabon and Rwanda were recently granted
fifth freedom rights, a move that has been
widely praised considering the slow pace of
Africa’s liberalisation programme.
In June the airline announced additional
capacity on its key routes to Nairobi
and Johannesburg effective 1 July 2011.
Frequencies on the Kigali-Nairobi route have
increased from twice daily to three times
a day, while Johannesburg now operates
four times a week. RwandAir has reported
increased demand on both the Kenyan and
South African routes saying it is essential
to provide more options and flexibility to
passengers.
With the increase in demand, the 737-800s
come at just the right time says the airline.
General Manager for commercial services,
Alice Katiti, confirmed that the airline is
already experiencing capacity constraints
on routes such as Kilimanjaro and Dar es
Salaam whose operations have now been
upgraded from the 50-seat CRJ-200 to
the 737-500. As a result, the two Tanzanian
routes now offer a Business Class service
and a fifth weekly frequency from August.
Expansion within Africa will remain critical for
the airline. The general commercial uprising
on the continent has sparked interest in the
developing markets around Africa. Further
south, Zambia is expected to become the
second destination served in Southern
Africa – the airline recently obtained traffic
rights to serve the Zambian capital but no
schedules are yet available. “We still have
internal workings to put together towards
Lusaka,” Mirenge said.
Domestic activity is also growing.
RwandAir already operates nine weekly
flights connecting Kigali and Kamembe –
southwest of the capital. In June the airline
launched its third destination this year to
the domestic city of Gisenyi in the Rubavu
district, coming closely on the heels of
Brazzaville and Libreville.
The East African aviation community is
one of the more mature regions on the
continent in terms of the flow of regional
traffic. However the industry is adamant that
this trend needs to grow, as opposed to
restrictive modes of operation.
Mr. John Mirenge - CEO RwandAir
Africa Wings12
but we will also be better placed to learn
more about them and their travel needs”,
he added.
Late last year, the airline partnered with local
mobile telephone companies in Rwanda
and Burundi to provide flight schedule
services by text. The airline plans to make
mobile ticket sales and check-in a possibility
for its customers and is currently putting
up an in-house call centre facility to help it
better manage inbound and outbound calls.
The airline has just recently entered into
a strategic partnership for the distribution
of Amadeus products in the Rwandan
market. RwandAir is the official distributor of
Amadeus travel technology solutions and
will help secure IT and customer support on
the ground.
The question of privatisation also springs up
from time to time but details remain sketchy.
The airline claims that it is working towards
achieving an operational and financial
standing in order for the government to
begin the privatisation process.
What is interesting about RwandAir is the
feeling of overwhelming eagerness for
recognition and a drive to be successful
from a business perspective, as John
Mirenge concluded: “Today we can
confidently say that we know where we
want to be and how we can get there. One
of our key goals is profitability and ensuring
return on investment to the shareholder.”
If dreams can come true, then RwandAir might just be in for a
bright awakening.
RXR-WB is one of twoCRJ-200s purchased from Lufthansa. Photo ©Jose Carballo.
Codeshare agreements are just one way
to help stimulate that traffic flow. RwandAir
is making a concerted effort to maximise
the benefits generated by cooperating with
other regional carriers.
Another top priority will be to facilitate
intercontinental growth, and a number
of codeshares have been set up to this
end. Two years ago a commercial deal
was signed with Brussels Airlines and the
RwandAir ‘WB’ code is placed on flights
between Kigali and Brussels.
Path to profitabilityOperating an airline profitably is generally
only possible a few years after operations
begin – assuming the strategies required to
achieve that profit have been worked out
and implemented.
Even a financially sound airline such as
Etihad Airways (that started operations
around the same time as RwandAir) has
still to break even – hoping it will do so by
the end of this year and report its first profit
in 2012.
In order to achieve profitability RwandAir
is ironing out a number of critical aspects
of the business. Appropriate safety
accreditation has a bearing on the direct flow
of international passengers. RwandAir is a
member of IATA (International Air Transport
Association) and has recently completed the
full accreditation process to obtain the IATA
Operational Safety Audit (IOSA).
Human resource is another factor. The
aviation sector in Rwanda has suffered from
a shortage of personnel with specialised
skills such as pilots and engineers. Most
of the technical employees have been
expatriates.
The airline is working out measures to
carefully plan and make provisions for the
gradual phasing-in of skilled Rwandans
to man operations. This concept, albeit to
a larger scale, is also taking place in the
aviation industry of other regions with large
expatriate numbers such as Oman and the
United Arab Emirates.
The airline is also investing in modern IT
applications to help streamline the business.
Earlier this year RwandAir partnered with
SITA to begin the implementation process
for the installation of new air transport IT
solutions. These solutions include the SITA
e-commerce platform which allows for
e-ticket distribution on the RwandAir website
with credit card payment facility, and the
SITA Horizon Frequent Flyer system as part
of the airline’s distribution and customer
retention solution.
Mirenge explained: “We want to make it
convenient for customers to access our
services by taking advantage of the reach
of the Internet and emerging e-commerce
applications. The SITA e-commerce platform
not only provides a new booking option for
customers already familiar with our airline
and its services, but also helps us reach more
international travellers around the world.”
“The prospect of having the miles based
reward program from SITA will not only help
us recognise and reward our frequent flyers
Rwandan government representitive James Kimonyo was hosted by Boeing Vice President, Jeff Hofgard, in celebration of the purchase.
Feature
August-October 2011 13
AFRAA Joint Fuel CommitteeFuel costs constitute on average 30% of airlines’ operational costs worldwide. In Africa, the cost
averages 40% for some airlines. Therefore, any strategy to reduce fuel costs is welcome news.
AFRAA, with the support of its members, relaunched the Joint Fuel Purchase Committee on
23 June 2011 with the goal of pooling fuel volumes and buying in bulk to bring down the unit cost.
The project launch was presided over by the Secretary General of AFRAA.
LAM Mozambique CEO at AFRAAThe CEO of LAM Mozambique Airlines
Dr. (Mrs.) Marlene Manave paid a visit to
AFRAA headquarters on 22 June 2011
accompanied by Mr. Javed Rahmat, the
airline’s Advisor. The purpose of the visit was
to share views and ideas on current industry
developments and the way forward.
The AFRAA Secretary General, Dr. Elijah
Chingosho, explained the recently launched
Business Plan highlighting the areas of
economic value to LAM Mozambique Airlines
and emphasizing some of the cost savings
and revenue enhancement projects being
implemented.
The CEO of LAM Mozambique Airlines
informed the AFRAA team of the three year
strategy of the Airline and how it intends
to exploit the opportunities in the market to
ensure that it remains a viable and respected
carrier that continues to add immense value
to the country’s economy. She also explained
the efforts being made by the authorities in
the country to bring Mozambique out of the
EU blacklist. LAM has an enviable safety
record, being IOSA as well as ISO 9000
certified and without a single accident over the
past 20 years.
Dr. Marlene Manave is one of three female
airline CEOs in the continent, the other two
being Mrs. Siza Mzimela, CEO of South
African Airways and Mrs. Theo Manases,
CEO of Air Namibia.
LAM Mozambique CEO (left) and AfRAA Secretary General Dr. Elijah Chingosho.
Seated from left-right: Messrs B. Abderahmane (CEO, I5), D. Tokoph, (Chairman, D6), H. Massoud (Group Chairman MS), E. Chingosho (SG, AfRAA), Dr. T. Naikuni (MD & CEO, KQ) A. M. Phiri (Representing XZ) and Y. Zewoldi (Representing ET).
AFRAA Diary
AFRAA Diary
AFRAA Executive Committee Meet in Nairobi The Executive Committee of the African Airlines Association held its second meeting of the year
on 22nd July 2011, to take stock of the performance of the Secretariat in the first half of the year
and in particular, review the progress of implementation of the 3 year business plan launched
in February. The meeting also appraised the progress of preparations towards the 43rd AGA
scheduled to take place in Marrakech, Morocco from 20th-23rd November 2011.
The Executive Committee commended the progress made by the Secretariat in implementing
the 3 Year Business Plan and the achievement of most of the targets set for the first half of the
year as measured by the Key Performance Indicators. The Secretariat was directed to continue
the efforts to develop projects of economic value to member airlines and to consider the brain-
drain as an opportunity to evolve innovative ways to develop adequate numbers of qualified and
competent professionals for African aviation as well as train excess for export to organizations
outside the continent.
The twelve member AFRAA Executive Committee is composed of Chief Executive Officers from
Afriqiyah, Air Burkina, Air Ivoire, Air Mali, Air Seychelles, EgyptAir, Ethiopian Airlines, Interair SA,
Kenya Airways, South African Airways, South African Express and Tunisair. The Chairman of the
Committee is Eng. Hussein Massoud, Group Chairman of EgyptAir Holding while the President
and host of the 2011 AFRAA AGA is Mr. Driss Benhima, Chairman of Royal Air Maroc.
PHOTOS courtesy of AfRAA.
Africa Wings14
AFRASCO Team Visits AFRAA The AFRAA Secretary General together with the Director, Government, Corporate and
Industry Affairs hosted three representatives from AFRASCO: Capt. Simon Searle of FDS
Consulting, Mrs. Hildegard Bellingan of South African Airways and Capt. Peter Kimeria of
Kenya Airways.
They discussed collaboration between the two organisations and joint initiatives to
improve aviation safety in Africa. The two organisations agreed to:
• Complement each other’s efforts and programmes to enhance Safety • reciprocal
participation in Annual General Meetings and other industry conferences • collaboration
with ICAO, IATA, AFCAC, ACI and other bodies working to enhance safety and develop
modalities to assist and support airlines preparing for IOSA audits.
AFRAA Launches New WebsiteAfter evaluating the feedback by various stakeholders
and to keep up with modern communication trends,
AFRAA launched a new website in June 2011. The
website is now easier to navigate and contains new
features. In keeping with the latest trends, you can
now follow AFRAA on Twitter and Facebook and be
updated on airline industry in Africa.
The increasingly popular AFRAA website
(www.afraa.org) also provides excellent marketing
opportunities for organisations.
PAPU Management Pay Working Visit to AFRAAThe Secretary General of the Pan African Postal Union
(PAPU), Mrs. Rodah Masaviru, accompanied by two
officers, paid a working visit to AFRAA to discuss the
strengthening of existing working relations between
postal corporations and African airlines.
They were received by the Secretary General of
AFRAA, Dr. Elijah Chingosho. The two organisations
discussed the cooperation agreement signed in
1995 and agreed to review the agreement to make it
relevant to the current realities. The two organisations
also resolved to resume active collaboration in mail
shipment and hub inspections among others.
AFRAA was invited to participate in the PAPU meeting
in July to discuss mail shipment and payment of
overdue debts owed to some African airlines. The two
organisations also agreed to conduct relevant joint
training in airport mail handling and dispatch.
Following the meeting, AFRAA wrote to airlines
requesting details of outstanding payments relating
to mail shipment. These were presented to PAPU at its
30th Ordinary Session of Administrative Council held
in Addis Ababa for settlement by the defaulting postal
corporations.
AfRASCO and AfRAA team at the AfRAA headquarters.
PAPU and AfRAA Secretary Generals with Directors at theAfRAA Headquarters.
AFRAA Hosts Simplifying Interline Settlement (SIS) Workshop As part of AFRAA’s ongoing contribution to the Simplified Interline Settlement (SIS) project,
AFRAA hosted the 'Africa SIS Awareness Workshop' in Nairobi in May 2011. The workshop
was facilitated by experts from IATA and was attended by 70 delegates from 25 Airlines
including 15 AFRAA members. Two AFRAA partners, Hahn Air and Travel Port, together with
AFRAA sponsored the workshop which was held at the Panari hotel.
Opening the workshop, the Secretary General of AFRAA, Dr. Elijah Chingosho emphasized
the need for African Airlines to adapt modern cost effective technology in order to remain
competitive and relevant. He reassured the Airlines that AFRAA would continue to provide
all the necessary support and work closely with IATA for the growth and development of the
industry in Africa.
Delegates at the Africa SIS Awareness Workshop at the Panari Hotel.PHOTO © AfRAA.
AFRAA Diary
August-October 2011 15
AFRAA Diary
The following are newly appointed CEOs of some African Airlines since our last publication in May 2011.
• Mrs. Marlene Manave has been appointed as CEO of LAM Mozambique. She replaces Mr. Jose Ricardo Viegas.
• Mr. Sergio Rosa has been appointed CEO of Air Burkina. He replaces Mr. Mohammed Ghelala.
• Mr. Mohamed Salah Boultif has been appointed as the new CEO of Air Algerie. He replaces Mr. Abdelwahid Bouabdallah.
• Mr. Hughes Ratsiferana is the new CEO of Air Madagascar. He replaces Mr. Fidy Rakotonirina.
• Mr. Thamri Mohamed replaces Mr. Nabil Chettaoui as the new CEO of Tunisair.
Africa Wings would like to welcome the new CEOs to their new positions and wish them well in their endeavours. We would also like to thank the former CEOs of these airlines for their support of their airlines and the industry as a whole during their tenure and wish them well.
Mrs. Marlene Manave LAM Mozambique
Mr. Mohamed Salah Boultif Air Algerie
Mr. Sergio Rosa Air Burkina
Mr. Hughes Ratsiferana Air Madagascar
Mr. Thamri Mohamed Tunisair
New CEO Appointments
AFRAA/AFCAC/IATA Hold a Regulatory Forum in NairobiAFRAA hosted a successful Regulatory Affairs Seminar
in collaboration with AFCAC and IATA in Nairobi on
21 June 2011. This, the 4th Regulatory Seminar jointly held
by AFRAA and IATA, was attended by stakeholders from
Civil Aviation Authorities, airports and airlines. The forum
was officially opened by the AFRAA Secretary General,
Dr. Elijah Chingosho and IATA Regional Vice President
from Africa, Mr. Mike Higgins.
The workshop highlighted the close collaboration
between AFRAA, IATA and AFCAC in ensuring that
African aviation stakeholders are updated with the latest
regulatory developments affecting the aviation industry.Delegates at the joint Regulatory forum pose at the `Red Court Hotel. PHOTO © AfRAA.
Africa Wings16
AFRAA Attracts More PartnersSeven aviation-related service providers have
joined the AFRAA Partnership Programme
since the beginning of the year. The new
partners are:
Atlantic Air Industries Maroc
AWAS
CHAMP Cargo Systems
Pratt & Whitney
Servair
Innovata
Hytena Aeronautics
The AFRAA partnership programme is open to
all aviation related non-Airline companies that
have an interest in contributing and supporting
the growth and development of African
aviation. Current members include aircraft
and engine manufacturers, spare parts and
components suppliers, ICT equipment and
solutions providers, product distribution and
data firms as well as leasing organisations,
MROs and consultancy firms. There are 22
companies on the partnership programme
including: Amadeus, AWAS, Atlantic Air
Industries, American General Supplies,
ATPCO, Boeing, CFM International, CHAMP
Cargosystems, Embraer, GE Aviation, Hahn
Air, Hytena Aeronautics, Kenyon International,
Lufthansa Consulting, Lufthansa Systems,
Pratt & Whitney, Rolls-Royce, Sabre Airline
Solutions, Seabury APG, Servair, SITA
and Travelport.
AFRAA Diary
Ceiba Intercontinental Joins AFRAACeiba Intercontinental Airlines of Equatorial
Guinea was recently approved by the Executive
Committee of AFRAA to join the Association.
The Malabo based airline is the national
carrier of Equatorial Guinea and operates both
domestic and regional routes with a fleet of four
ATRs.
AFRAA Annual General AssemblyThe 43rd African Airlines Association (AFRAA)
Annual General Assembly and conference will be
held in Marrakech, Kingdom of Morocco from
20-22 November 2011 under the patronage of
Royal Air Maroc.
The conference will be under the theme,
“Harnessing the Growth Opportunities Together”
and will bring together many African Airline CEOs
and key decision makers. In addition to statutory
issues to be discussed by the Assembly, there
will be a high level CEO’s Forum that will debate
topical industry issues and chart strategies for the
future. The conference will also feature two panel
discussions and presentations by renowned
experts and consultants as well as exhibition of
some of the latest technology applications and
products in the industry.
As part of the package for all delegates who will
be attending, Royal Air Maroc is granting air ticket
discounts of up to 70% in Economy and 50% in
First and Business Class on its entire network.
Hotel accommodation is also highly subsidized.
PHOTO © Travel-Images.com
Africa Wings is a Pan-African journal on air transport. It is dedicated to the dissemination of reliable and accurate African aviation industry developments and communicating the African Airlines Association’s (AFRAA) positions and views on topical global air transport issues that affect the African aviation market.
Published quarterly for AFRAA by Camerapix Magazine Limited, it is circulated widely to airlines, industry partners, aviation service providers, airports, civil aviation authorities, regional and sub-regional air transport bodies, universities, research institutions, travel agents, tour operators, hotels among others.
Africa wings is in its fourth year of publication.
To advertise, subscribe or get further information on the journal, please contact:
Editorial and Advertising Office: Camerapix Magazines Ltd.PO Box 45048, 00100 GPO Nairobi, KenyaTel: +254 (20) 4448923/4/5. Fax: +254 (20) 4448818 or 44410219E-mail: customercare@camerapix.co.ke
The Commercial Director: African Airlines AssociationPO Box 20116, 00200 Nairobi, KenyaTel: +254 (20) 604855, Fax: +254 (20) 601173Email: rkuuchi@afraa.org
ADVERTISE TO AFRICA WINGS
August-October 2011 17
feature
Capturing Revenue from Consumer Surplus By Ingo Roessler, Director Business Development, Optiontown.
It’s no secret to any airline: The key to
profitability is cutting costs while
enhancing revenue. With fuel prices
remaining at stubbornly high levels, the
percentage of an airline’s costs that it can
actually control is at historically low levels,
and thus the industry—around the world
and here in Africa—is becoming ever more
focused on revenue.
Airlines everywhere have embarked on
revenue-enhancing initiatives. Some carry
risks: charging for items that were once
complimentary, such as checked bags
and meals, can anger customers. And so
successful airlines, although indeed
pursuing some of those initiatives, are
looking for ways to increase revenue
without angering customers—and indeed,
while actually delighting them.
How is that possible?
A relatively new field called 'post-
purchase revenue management,'
championed by a company called
Optiontown, is focusing on customer
desires rather than just customer needs.
Almost every airline practices revenue
management, and in fact many African
carriers have recently implemented new-
generation revenue management systems
that, for example, enable origin-and-
destination based revenue management,
rather than more rudimentary segment-
based revenue management. But even all
of these advancements focus only on
customer needs.—The customer must travel
during a certain timeframe and is only willing
to pay a certain fare—and they stop at the
time of purchase, sometimes months
before a flight. When Economy-class
customers search for a flight, they are
highly price sensitive and will often choose
one airline over another because it is just
slightly cheaper.
But after they make their purchase,
something interesting happens. Sachin
Goel, the founder and Chief Executive
Officer of Optiontown, discovered while
conducting extensive research at the MIT
Center for Transportation Studies that
customers have desires that can actually
be fulfilled after the purchase—and can be
more profitable than the low-margin
Economy-class ticket itself.
World-famous MIT in Cambridge,
Massachusetts, has given birth to some of
the airline industry’s most innovative
companies, such as ITA Software, which
Google recently purchased for US$ 700
million. In that tradition, Goel founded
Optiontown creating dynamic travel
options to match customer desires—and
their willingness to pay to fulfill their
desires—with airlines’ abilities to meet those
desires using assets like excess business
class inventory.
Specifically, Goel knew that almost every
Economy-class customer would love an
upgrade to Business Class if given the
opportunity at a price he could afford. And
every airline has some excess Business
Class inventory and would be happy to
increase its yields by selling upgrades—but
only if it could guarantee that it wouldn’t
cannibalize its standard Business Class
pricing. In other words, it had to truly be
incremental revenue.
Several years of research and
development led to the commercial release
of Optiontown in 2009. It was a quick
success. More than 10 airlines around the
globe, including Arik Air, the largest airline
in West Africa, have already adopted the
system, which has two offerings. With the
Its no secret to any airline: The key to profitability is cutting costs while enhancing revenue.
Africa Wings18
'sell' options to airlines. Most airlines oversell
their flights in an attempt to ensure a full
flight when taking into account passengers
who don’t turn up. When more passengers
than forecast turn up, airport staff have to
quickly work to offload passengers by
offering them lucrative compensation. It’s an
expense and hassle for the airline and a
huge inconvenience for passengers. With
the FRO, passengers have the opportunity,
after they have booked, to declare their
flexibility to travel on alternate times/flights
in exchange for compensation should they
be shifted to said alternate flight. Because
they are notified up to two days before
departure, rather than after turning up at the
airport with their bags, they are willing to
accept less compensation than is
necessary at the airport. In exchange for a
small payment of up to $50, passengers
are automatically shifted to a different flight
that they’ve already confirmed is convenient
for them. It all takes place without any
impact on airport staff, who are free to
focus on their core duties.
So what’s involved in becoming a member
of the Optiontown family of airlines, and
what kind of results can an airline expect?
Goel said that remarkably, no cash
investment is required from the
airline. Optiontown provides
all the patented technology, which
integrates easily with reservation and
revenue management systems. A new
Optiontown airline partner needs nothing
more than an innovative spirit and a
technical staff that support the
implementation process. Once the system
goes 'live' airlines begin seeing incremental
business from literally the first day. During a
period of about six-twelve months,
Optiontown continues refining its
algorithms; by the end of that period, the
airline can reach full optimization, whereby it
is nearly eliminating 'spoilage' in the
Business Class cabin while retaining all of
its previous premium revenue.
Airlines in every geographical region and of
every business model have signed up, from
Malaysia Airlines (one of only seven Skytrax
'five-star airlines' in the world) to its
neighbour and competitor AirAsia X, which
is the world’s lowest-cost carrier.
The chase for revenue isn’t
likely to ever subside, and
most airlines will pursue it
using a variety of initiatives.
Optiontown can be a
powerful weapon in a
revenue-generation arsenal;
one that creates a true win-win
between the airlines
(increase profitability
without any cash
investments) and the
customers (enhance travel
utility).
Upgrade Travel Option (UTo), an Economy
Class customer is offered the opportunity
to purchase an 'option' to upgrade to
Business Class. The customer clicks
through from the airline’s website to
Optiontown’s site, where typically
between 25 per cent and 45 per cent of
customers, but sometimes as many as
80 per cent at some airlines, (depending
on route network) choose to purchase
these options. Successful customers
receive confirmation of their upgrades
before they depart.
It might sound simple, but Goel says
there’s a reason no airline successfully
carried out such a scheme before
Optiontown.
“Airlines were understandably concerned
about cannibalization,” Goel said.
“Optiontown was the first system that
could give them comfort that this was all
incremental business.”
He explained that Optiontown’s patented,
sophisticated revenue management
system integrates with an airline’s own
systems to ensure that an optimal
number of options are sold for a flight,
using a complex array of algorithms.
Repeat customers soon realize they have
a reasonable enough possibility of being
upgraded that it’s worth purchasing the
option, but not so high a probability that it
could serve as a substitute for a full-fare
Business Class ticket for “traditional”
premium passengers with the need and
the means to confirm Business Class
travel.
Typical UTo customers include leisure
passengers traveling for a special
occasion, such as a honeymoon or
wedding anniversary, as well as business
travelers whose corporate travel policies
may not permit confirmed Business Class
travel. Optiontown’s other major offering
alongside the UTo is called the Flexibility
Reward Option (FRO). The concept is
similar, but in this case customers actually
Feature
August-October 2011 19
Air Nigeria, Delta Sign Codeshare Pact on US RouteAir Nigeria and Delta Airlines
recently signed a codeshare
agreement that will facilitate
the seamless movement of
passengers from the Murtala
Muhammed International
Airport, Ikeja, Lagos and Nnamdi
Azikiwe International Airport,
Abuja, to Atlanta and New York.
The two airlines are also planning
to start a reciprocal frequent flyer
agreement that allows customers
from Delta's SkyMiles and Air
Nigeria’s eagleflier® programmes
to earn and redeem miles for
flights.
Speaking at the signing, the
CEO of Air Nigeria, Mr. Kinfe
Kahssaye said, “This codeshare
arrangement is strategically
important for Air Nigeria as it
complements the objective of
the airline to provide seamless
service for passengers flying
between West Africa and the
U.S.A”. He further noted that
“the cooperation will also pave
the way for Nigeria to be the
gateway between Africa and
USA and further develop trade
and tourism between USA and
Africa”. Air Nigeria has a strong
domestic and regional presence
in the West and Central African
region.
SAA Expands in AfricaSouth African Airways (SAA)
is planning to introduce flights
to several African countries as
part of its route expansion plans.
According to the Chief Executive
Officer, Ms. Siza Mzimela, “SAA
plans to grow its routes as well
as improve its infrastructure.”
The Airline will start flights to
Abuja in Nigeria, Madagascar,
the Republic of Congo and
Burundi, whilst also growing in
South America, Asia and India.
The CEO added that, “We are
beginning to see open skies
and we want to understand how
this will impact on us and also
the opportunities it will bring.
But also important is opening
up Africa for Africans that has
been lacking. The focus on the
continent is important.”
Meanwhile, SAA on 15th May
2011, started non-stop round-trip
flights between Johannesburg
and New York which reduces
travel time by 90 minutes. The
airline also plans to commence
direct services to Beijing from
1 September 2011.
Kenya Airways Launch Carbon Offset ProgrammeThrough a unique initiative
developed in cooperation with
IATA, Kenya Airways now offers
its passengers the opportunity
to voluntarily participate directly
in offsetting the carbon dioxide
(CO2) emissions related to their
flights.
The programme is based on a
'Carbon Calculator Tool' built into
the airline’s online ticket booking
process. Passengers can choose
to pay an additional amount
applied per person to offset
carbon emissions related to their
specific flight.
Speaking during the official
launch of the programme, KQ
Group Managing Director and
CEO, Dr. Titus Naikuni said,
“This is an exciting development
for Kenya Airways, because
it shows the commitment that
we have to environmental
sustainability. What is even more
interesting is that we are giving
our customers an opportunity
to walk on this environmental
conservation journey together
with us.”
Fees collected through this
programme will be used to
support projects that have been
qualified by IATA and certified by
the United Nations Environment
Program (UNEP) as being
credible in having a positive
impact on sustainability.
Precision Air to Acquire 11 Aircraft in Five YearsPrecision Air (PW) plans to
acquire 11 more aircraft in the
next five years, according to the
Managing Director, Mr. Alfonse
Kioko. “That is our strategic plan
for the next five years…... we
are confident that we will do it
through buying and leasing,” he
said.
PW currently has a fleet of 10
aircraft, seven of which are new
and delivered through a $ 129
million deal with the France-
based aircraft manufacturer ATR.
The aircraft to be acquired will
enable the airline to expand
its operations to several new
destinations. Among others,
the airline plans to open new
routes to: Johannesburg, Pemba,
Nampula, Moroni, Lubumbashi,
Lusaka, Harare and Blantyre.
PW also plans to commence
operations to the Middle East
and later to Europe within the
next three years. Additional
capital for the purchase of the
aircraft will come after its listing
at the Dar es Salaam Stock
Exchange.
news briefs
News BriefsTAAG Angola Launch Luanda-Porto RouteTAAG Angola Airlines in July launched direct twice-weekly flights between Luanda and Porto in
Portugal.
Meanwhile, TAAG has taken delivery of its first 777-300ER, which is the first 777-300ER
purchased, owned and operated by an African airline. The aircraft delivered on 14 June 2011 is the
first of two 777-300ERs ordered by the airline in October 2009. TAAG Angola Airlines will use the
aircraft for route expansion to destinations such as Rio de Janeiro, Sao Paulo, Lisbon and Porto.
The airline is also preparing its application to fly into the United States with its new 777-300ERs.
TAAG currently flies 777-200ERs from Luanda to Lisbon, Beijing, Dubai, Sao Paulo and Rio de
Janeiro.
PHOTOS courtesy of AfRAA.
Africa Wings20
Ethiopian Airlines Adds New Destination and Enters into Codeshare Agreement Ethiopian Airlines (ET) boosted
its worldwide network to 62
destinations with the addition
of five new weekly services to
Milan in July. Milan becomes
Ethiopian’s second destination in
Italy after Rome and the seventh
in Europe.
In a related development,
ET made its maiden flight to
Hangzhou on 3 May 2011.
Hangzhou is the airline’s fourth
destination in China along with
Beijing, Guangzhou and Hong
Kong. Five flights are being
operated weekly between Addis
Ababa and Hangzhou in addition
to the services to the other three
cities in China.
"This new operation to Hangzhou
reinforces our commitment to
the Chinese travelling public and
the strong ties between China
and Africa", said Mr. Tewolde
GebreMariam, CEO of Ethiopian
Airlines.
Meanwhile, ET has entered into a
codeshare agreement with LAM
Mozambique Airlines providing
customers of both carriers more
flexible and convenient flight
services through their respective
hubs of Addis Ababa and
Maputo.
The agreement introduces more
choices of flights for passengers
from Mozambique to the vast
Ethiopian global network and
vice-versa. With the codeshare,
ET increases the number of daily
flights on the Addis Ababa-
Maputo route, providing more
flight choices to customers of
both carriers.
Air Transport Suffers Drawback in LibyaUntil the political upheaval in Libya
earlier this year, the air transport
market was experiencing fast
growth driven by the two major
carriers in the country – Afriqiyah
Airways and Libyan Airlines. As
Libya continues in a state of war
and turmoil and as the UN no
fly-zone over the country persists,
commercial aviation has emerged
as one of the most serious
casualties.
Both Afriqiyah and Libyan Airlines
have suspended operations and it
is uncertain when the situation will
normalize for business to resume.
The no-fly-zone over Libya,
which includes civil aviation, is
seriously threatening the country’s
air transport sector which in the
last couple of years had begun
to recover from the embargo
imposed from 1990 to 2003
by the United Nations over the
Lockerbie bombing. Following the
lifting of the air embargo 2003,
Libya tried to redevelop its civil
aviation and was positioning
itself as a major air transport hub.
It adopted a liberalized aviation
policy in an effort to open up the
country to the rest of the world and
set up the state-owned airlines
of Libyan Arab Airlines, Afriqiyah
Airways and Al-Buraq among
other aviation organisations. This
policy propelled Afriqiyah Airways
into a major global carrier linking
the African continent to the rest of
the world. Afriqiyah specialized in
connecting African and European
capitals and until the recent no-fly
zone was imposed on Libya flew
to 72 destinations across the
world via Tripoli.
In late 2010, Afriqiyah Airways
signed an order to purchase 23
new planes of various types from
Airbus. Unfortunately, the airline
cannot take delivery of any of
these aircraft this year due to the
air blockade.
Boeing Marks Milestone Delivery to Air AlgérieBoeing marked a major milestone with Air Algérie by delivering the
carrier’s 50th Boeing jetliner, a 737-800, recently.
The Air Algérie Boeing 737-800 was the fourth of seven 737NGs
the airline ordered in 2009 and the delivery also marked a 40-year
partnership between Boeing and Air Algérie.
Kotoka International Airport Voted Best Airport in AfricaThe Kotoka International Airport in Ghana has won this year’s coveted
Best Airport in Africa Award following a competitive and rigorous
selection and screening process by Routes (the world air routes
development body). The award was presented to the Managing Director
of the Ghana Airports Company Ltd. (GACL), Mrs. Doreen Owusu-
Fianko at the Routes Africa 2011 Conference held in Mali, Bamako from
3-5 July 2011.
news briefs
Kotoka Airport, Ghana. Photo © Ghana Airport Company.
Photo © Air Transport Intelligence News.
August-October 2011 21
Boeing Delivers 50th Airplane to EgyptAir Boeing reached a major milestone with EgyptAir this month
when it delivered the airline's 50th airplane a Next-Generation
737-800. The 737 is the 17th of 20 ordered by EgyptAir. This
delivery also marked a 45-year partnership between Boeing
and EgyptAir.
"Boeing has played a pivotal role in our growth plan," said
Hussein Massoud, Chairman and CEO of EgyptAir Holding
Co. He added, "We are extremely satisfied with the Next-
Generation 737, which has earned an excellent reputation
for reliability and operational efficiency, and has the range
that allows us to expand our network further into Africa,
Europe and the other medium-haul destinations. Moreover,
the 777-300ER is extremely popular with our customers and
we see direct benefits due to the airplane's exceptional fuel
efficiency, seat-mile costs and economics, in addition to the
luxury and comfort of the interior cabin."
news briefs
IATA Holds its 67th Annual General Meeting IATA held its 67th Annual General Meeting (AGM) and World Air Transport Summit in Singapore
from 5-7 June 2011. The participants included at least 15 African airlines.
African airlines that attended met with the outgoing and incoming IATA DGs and their team on
5 June 2011. The meeting deliberated on various issues of interest to African airlines including the
EU ETS Scheme, the EU blacklist of airlines, brain drain, safety and environmental issues.
Among others, two CEOs of Africa’s major carriers were elected to the IATA Board of Governors.
They are: Dr. Titus Naikuni, Group Managing Director and Chief Executive Officer of Kenya Airways
and Mrs. Siza Mzimela, Chief Executive Officer of South African Airways.
Dr. Naikuni previously served on the IATA Board between 2004 and 2009 while Mrs. Mzimela
makes history as the first female airline CEO in the world to serve as an IATA Board member.
Africa occupies three of the 31 seats on the IATA BoG. The other African Executive on the Board is
Eng. Hussein Massoud, Group Chairman of EgyptAir. He has been on the Board since 2009.
Peter Hartman, President and CEO of KLM Royal Dutch Airlines succeeds David Bronczek, CEO of
FedEx Express, as Chairman of the IATA Board of Governors. Tony Tyler, former Chief Executive of
Cathay Pacific, was confirmed to succeed Giovanni Bisignani as IATA’s Director General and CEO.
Tyler’s appointment is effective from 1 July 2011. While the President and host of the 2011 AFRAA
AGA is Mr. Driss Benhima, Chairman of Royal Air Maroc.
Dr. Titus Naikuni, Kenya Airways Managing Director and Chief Executive Officer.
Mrs. Siza Mzimela, SAA Chief Executive Officer.
Air Nigeria to Recommence Intercontinental OperationsIn line with its route expansion plans,
Air Nigeria is set to recommence daily
direct flights to London Gatwick starting
September 2011.
The long-haul flight service is coming
as the airline consolidates after the full
implementation of its turn-around strategy
in the last year. It has also completely
reappraised its product offering on
international routes.
In preparation for the re-launch of the long
haul flights, the airline is in the process of
acquiring three Airbus A340-300 aircraft.
From its base at the Murtala Mohammed
Airport, Lagos, Air Nigeria currently
operates to seven domestic and nine
regional destinations with further plans
to extend services to more African
destinations, Europe, Asia and the
Americas.
PHOTO © Air Transport Intelligence News.
Africa Wings22
South African Airways (SAA), one of the
world’s oldest airlines, began flying
on 1 February 1934, a mere 30 years
after the Wrights Brothers’ had made their first
powered flight near Kitty Hawk, North Carolina
on 17 December 1903. Since its inception,
SAA has utilised numerous types of aircraft,
from single engine biplanes such as the de
Havilland DH60G Gipsy Moth carrying just one
passenger to the very largest, powered by two,
three or four powerful jet engines, transporting
up to several hundred passengers to the far
corners of the globe.
The company was established after the South
African Government took over the assets
and liabilities of a small private airline, Union
Airways, and absorbed it into a new national
airline SAA, which fell under the control of
the South African Railways and Harbours
Administration.
South African Airways Rebirth of a Legend
The father of civil aviation in South Africa, the
indefatigable Major Allister Miller, a World War
1 flying ace, who had recruited some 2,000
South Africans for service in the Royal Air
Force, founded Union Airways at Fairview in
Port Elizabeth in 1929 after being awarded a
government contract to fly mail between Cape
Town and the major centres in South Africa.
The company was registered on 24 July 1929
and began airmail operations on 26 August
the same year, with five de Havilland DH60
Gipsy Moth biplanes. Mail was collected from
the Union Castle steamships from Britain that
docked at Cape Town harbour on Monday
mornings and flown to Port Elizabeth by a
single Gipsy Moth. At Port Elizabeth two more
Gipsy Moths were waiting to continue the
service, one to fly mail to Bloemfontein and
Johannesburg and the other to East London
and Durban. On Thursday, 29 August the
return service was operated reaching Cape
Town in time for the departing United Kingdom
bound steamship.
Union Airways carried its first passenger from
Cape Town to East London on 3 September
1929. The airline is also credited to the carriage
of the sick on mercy flights. As both mail and
passenger traffic increased Miller bought a
Fokker Super Universal single engine aircraft
that could carry six passengers and this aircraft
entered service on 29 May 1930. The next
aircraft type to enter service with Union Airways
were two de Havilland DH 80A Puss Moths.
These aircraft could carry two passengers in an
enclosed cabin and replaced some of the old
Gipsy Moths that had been sold or written-off.
Unfortunately, one of the Puss Moths crashed
near Sir Lowry’s Pass in the Western Cape
after structural failure, the pilot and both
In August 1950, the airline introduced four Lockheed Constellations on the Springbok Service. These sleek aircraft reduced the flying time to London to 28 hours. The Connie, as it was affectionately known, was the first pressurised airliner to be operated by SAA, enabling the aircraft to cruise above most of the African weather.
Story by Peter Holthusen.
history of wingsP
HO
TOS
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esy
of
Pet
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olth
use
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August-October 2011 23
The 'first Lady of the Skies' seen here in the landing configuration on the approach to New York's JfK International Airport.
history of wings
passengers were killed. More bad news was to
follow when the Fokker Super Universal was
written-off in a crash at Kayser’s Beach near
East London on 31 December 1931. The three
Union Airways airmen onboard at the time
were not injured.
The Imperial Airways Company of Britain
began operating a scheduled service from
England to South Africa on 20 February
1932, at first only mail was carried, but the
competition increased when they later carried
passengers on a flight that took 11 days.
Union Airways was struggling to make ends
meet and little help was forthcoming from the
South African Government. Junkers South
Africa Pty (Ltd) who owned and operated
South West African (SWA) Airways, bought a
substantial share in Union Airways. An all-metal
Junkers F13 was chartered from SWA Airways
and was soon operating in place of the
wrecked Fokker. More Junkers aircraft followed
in the form of F13 and W34 aircraft and later
a Junkers A50 also joined the fleet. Imperial’s
airmail service from England to Cape Town was
routed via Rand Airport and Kimberley and this
made the Union Airways airmail service from
Cape Town to Johannesburg unnecessary.
The carriage of airmail from Durban to
Johannesburg and Durban to Cape Town was
contracted to Union Airways.
Passenger growth on the Durban to
Johannesburg service grew steadily
culminating in a daily flight. This compelled the
airline to move their base from Port Elizabeth
to Durban. Major Miller also placed an order for
three Junkers Ju 52/3m aircraft; an all-metal
airliner with three engines which could carry up
to 18 passengers.
However, the final nail in Union Airways coffin
came when one of the Junkers W34 aircraft
crashed in bad weather near the town of
Eshowe in Zululand in 1933, two crew and
three passengers were killed, one passenger
survived. This was a major blow to the airline
and forced Miller to approach the South African
Government to take over the operation, who
subsequently agreed. This included 40 staff
members and three Junkers F13s, one DH60
Gipsy Moth, one DH 80A Puss Moth and a
leased Junkers F13 and A50.
South African Airways honoured the order
for the three Junkers Ju 52/3m aircraft, which
were delivered in October 1934 and went into
service 10 days later. This was the beginning of
the now legendary airline we know as South
African Airways.
The aircraft were configured to carry 14
passengers and a crew of four. The speed,
comfort and reliability of the Ju 52/3m aircraft
proved to a cautious and sceptical public that
air travel was safe, fast and here to stay.
SAA started operating three services per week
between Durban and Johannesburg and a
weekly service from Durban-East London-Port
Elizabeth, with an overnight stop at George or
Mossel Bay, and (depending on the weather)
– Cape Town. On 1 February 1935, SAA took
over South West African Airways at a purchase
price of £1. In the process inheriting its aircraft
and some of its staff.
It soon became apparent to SAA that
Johannesburg would become the hub of air
travel in South Africa and the airline moved to
Rand Airport on 1 July 1935. On the same day,
SAA began operating a Rand-Durban-East
London-Port Elizabeth-Cape Town in one-
day service. From July 1935, a weekly Rand-
Kimberley-Beaufort West-Cape Town service
was introduced, setting record flying times.
In April 1936, SAA took over the Rand-Cape
Town service from Imperial Airways. A fourth Ju
52/3m aircraft was soon added to the fleet.
SAA wasted no time in placing orders for
more aircraft: 10 Ju 52/3m, 18 Junkers Ju 86
and seven Airspeed AS.6J Envoys. Four of the
Envoys were for SAA and three for the South
African Air Force. War clouds were looming in
Europe and all the aircraft that were ordered
could be transferred to the Air Force in time of
war and the Junkers Ju 52/3m were to be used
for carrying troops and the Envoys and Ju 86s
for conversion into bombers. When deliveries
of the new aircraft began, the three older Ju
52/3m airliners were sold, as were most of the
older single-engine aircraft, this was a time of
rapid expansion for the airline.
SAA was always ahead of its time, for on 1 October 1960, the airline introduced the Boeing 707 on the Springbok Service to the UK. This reduced the journey to an actual flying time of around 13 hours.
Engineered and designed by the famous British novelist and aeronautical engineer, Nevil Shute, the Airspeed AS.6J Envoy was an exquisite aircraft. four were used by SAA on routes to Port Elizabeth and South West Africa until they were transferred to the South African Air force in 1938.
Africa Wings24
New routes were opened flying from Rand-
Bloemfontein-Port Elizabeth, Rand-Kimberley-
Upington-Keetmanshoop-Windhoek, Cape
Town-Kimberley-Windhoek. Flights between
the major centres were also increased. During
the Junkers delivery period, SAA was short of
aircraft to service all the new and proposed
routes, and the three SAAF Envoys were
converted to passenger layout and used to
supplement the fleet. When the Junkers Ju 86
aircraft were delivered, all the Envoys (including
the four from SAA) were returned to the SAAF,
as the aircraft proved unsuitable for the SAA
passenger and cargo services.
In June 1937, Imperial Airways began using
flying boats on its South African service with
the service terminating in Durban. SAA began
operating its first regional service to Lusaka
with stops at Pietersburg, Bulawayo and
Livingstone. In July, the service was extended
to Kisumu on Lake Victoria, taking over the
Imperial Airways land-plane service. The
SAA service was extended from Livingstone
and stopped at Broken Hill-M’Pika-Mbeya-
Dodoma-Moshi-Nairobi-Kisumu. The Imperial
Airways flying boat service also stopped at
Kisumu, where airmail bags and passengers to
or from SAA aircraft were transferred.
The next regional service was to Lourenço
Marques (Maputo), where airmail also destined
for Imperial flying boats was transferred. A
service from Rand-Palapye Road-Maun (later
replaced by Gobabis)-Windhoek was also
introduced. Shortly before the war this service
was extended up to Luanda. Following the
outbreak of war, SAA ordered Lockheed
Lodestar aircraft from the United States of
America. These twin-engine airliners were
delivered during the hostilities and only the
survivors saw service with SAA towards the
end and after the war. After war broke out,
all SAA staff and aircraft were transferred to
the SAAF. During the early part of the conflict
some Ju 52/3m’s operated limited services
around the country.
In the period from the start of the airline to the
cessation of operations at the war’s beginning,
118,822 passengers, 3,278 tonnes of airmail
and 248 tonnes of cargo were carried; the
number of staff employed had risen to 418.
Six Lodestar aircraft and staff were released
from the SAAF to operate limited services for
the airline from 1 December 1944. Twenty-six
services a week were operated to the main
centres and Bulawayo. As more Lodestars
were released, services were increased. The
remaining Lodestars were released after the
war, a total of 19 survived.
During the conflict, new airports were planned
for Durban, Cape Town and an international
airport at Johannesburg. The construction of
the airport at Johannesburg would take several
years to complete. The name of the airport
was to be Highveld, but with Field Marshal
Montgomery performing the naming ceremony
in December 1947, it was decided to name it Jan
Smuts Airport.
In the 1940s, SAA house colours were a blue
cheat line over an aluminium skin, the early
SAA logo and a blue stripe over the fin and
rudder. The airline used the motto of ‘The Blue
and Silver Fleet’.
Rand Airport’s runways were too short and a
temporary airport was built to accommodate
the envisaged service to Britain. The airport
was named Palmietfontein and was situated
south of Rand Airport. The newly-formed
British Overseas Airways Corporation (BOAC)
planned to operate their service with Avro York
aircraft; some of which were leased to SAA to
operate the reciprocal service. The York was an
ungainly looking aircraft. Its four engines were
fitted to its high wing, the tail had three fins and
the body was square and slab sided. It carried
12 passengers and had six crew members. Its
ancestry came from the Lancaster bomber.
SAA’s first intercontinental service, known as
the Springbok Service, started on 10 November
1945, the service routed Palmietfontein-
Nairobi-Khartoum-Cairo-Castel Benito-Hurn
Bournemouth, (Heathrow had not yet opened).
The flight took three days to complete and
overnight stops were made at Nairobi and
Cairo, with the flying time around 33 to 34
hours. At first, a weekly service was operated,
and as the demand for seats increased,
more services were introduced until finally six
services per week were flown. Douglas DC-4
Skymaster aircraft entered service on 1 May
1946 on the Johannesburg-Cape Town route,
with the Douglas DC-3 Dakota entering service
on the same day on the Johannesburg-Durban
route. The Dakotas came from the surplus
SAAF Douglas C-47 inventory; and were
converted into passenger airliners by SAA.
From 1946, the airline experienced a massive
growth of aircraft, passengers, cargo and
staff. When more Skymasters entered service,
the Avro Yorks were returned to BOAC. Air
Hostesses were first introduced in September
1946. At first, they only flew on the internal
services and were later used on the Springbok
Service. At the end of 1946, the first of two de
Havilland DH 104 Dove aircraft entered service.
These aircraft were used to operate a feeder
service and for crew training. They were not
suited to SAA’s operation and both were finally
sold in the early 1950s.
The next type to be introduced by SAA was
the Vickers Viking, a 28 seater airliner used
on both internal and regional services. Their
service life with SAA was fairly short and all
were sold to British European Airways (BEA): by
1951 all had left South Africa.
In August 1950, the airline introduced four
Lockheed Constellations on the Springbok
Service. These sleek aircraft reduced the flying
time to London to 28 hours. The Connie, as
The first of SAA's eight Boeing 747-400 series aircraft arrived in January 1991. The most distinguishing feature of this version of the 747 is the upturned 'winglets' on the end of the wings, which have become commonplace on modern wide-body airliners.
history of wings
August-October 2011 25
In february 2010, the South African Airways (SAA) appointed Mrs. Siza Mzimela as its first female CEO.
it was affectionately known, was the first
pressurised airliner to be operated by SAA,
enabling the aircraft to cruise above most of
the fearsome African weather.
South Africa was the destination of the world’s
first passenger jet service when a BOAC
Comet 1 landed at Palmietfontein on 3 May
1952. The journey had taken just under 24
hours to complete. Although the Comet had
a high cruising speed, it did not have a good
range, and time was lost on the five refuelling
stops on its route. SAA entered into the jet
age using two chartered Comets from BOAC;
the first service was operated from London to
Johannesburg on 4 October 1953.
SAA was always ahead of its time, for on 1
October 1960, the airline introduced the Boeing
707 on the Springbok Service to the United
Kingdom. This reduced the journey to an actual
flying time of around 13 hours. The 707 also
brought in the new airline colours, the main
difference being the orange tail with a blue and
white flash. On 23 February 1969, the 707 also
inaugurated the long-awaited service to the
Americas, flying from Johannesburg to Rio de
Janeiro to New York.
The 1960s saw great expansion of the airline;
faster aircraft could carry more passengers
further. In 1965, Boeing 727 jetliners were
introduced on regional and internal services,
and in 1968 Boeing 737 airliners were
introduced to supplement the 727 fleet.
On 6 November 1971, the Boeing 747 ZS-
SAN Lebombo arrived at Johannesburg
on its delivery flight. The huge wide-body
airliner attracted the nickname of Jumbo Jet
and Lebombo was the first of 30 B747s to be
operated by the airline, heralding a new era
of air travel. In 1976, the Boeing 747 SP aircraft
were introduced and to demonstrate its very
long-range capability the first aircraft was flown
non-stop from the Boeing Company factory in
Seattle to Cape Town. In 1980, a new service to
Taipei, Taiwan was introduced using the B 747
SP airliners and at the same time the stop at
Seychelles was dropped in favour of Mauritius
on the lucrative Hong Kong service.
Due to sanctions against the Apartheid system
in South Africa, most industries suffered from
global isolation, including SAA, who were
forced to lease or sell some of its aircraft
to Canada, Mauritius, Brazil and Morocco.
However, as sanctions were eased in 1991,
SAA was allowed to fly over the east coast of
Africa and the airline began taking delivery of
Airbus A320 aircraft for use on the internal and
regional services.
The first of three Boeing 767 wide-body twin-
jets were delivered to SAA in August 1993; the
smaller wide-body airliner was used to fly to
the Middle East, Africa and southern European
destinations. SAA operated the type for 10 years.
Towards the turn of the millennium, fairly
rapid growth was experienced, particularly on
services to Africa, as well as modernisation
of the long-haul fleet. An alliance was formed
between SAA, South African Express and
South African Airlink in February 1997. On 22
March 1997, SAA introduced its new corporate
identity and livery, dropping the ‘springbok’
emblem, and the old national colours of orange,
white and blue. The new livery was based upon
the rainbow colours of the new national flag,
with a sun. The airline’s name on its aircraft
was also changed to ‘South African’, with the
Afrikaans name Suid-Afrikaanse Lugdiens
dropped. In November 1999, SAir Group the
holding company of Swissair – bought a 20 per
cent share in SAA for R1.4 billion.
In July 2000, the first Boeing 737-800 ‘New
Generation’ was delivered. Twenty-one of the
type were ordered to replace both the Airbus
A300 and A320 aircraft. By March 2002, all
of SAA’s Airbus aircraft had left South African
skies. In November 2001, Transnet bought
back ailing SAir Group’s share in SAA.
SAA bought a 49 per cent share in Air
Tanzania Limited in July 2002; the new outfit
was launched in April 2003. In the fleet
modernisation programme, Airbus A340
aircraft would replace both the B747 classic and
B767 aircraft. Airbus A319 and A320 aircraft
would replace the Boeing 737 and later the
737-800 airliners. The first Airbus A340-642
was delivered in January 2003. To speed up the
re-equipment, A330 and A340-200 airliners
were leased from European operators.
The first A340-642 service was operated to
Hong Kong in February 2003, replacing the
B747 classic on the route. As more Airbus
aircraft, such as the A340-600 and A340-
300E arrived, the old classics were sold,
returned to the leasing companies or retired to
the South African Airways Museum Society
aircraft park at Rand Airport, Germiston.
Further restructuring of the airline led to SAA
joining the world’s largest airline alliance,
Star Alliance on 10 April 2006. SAA was the
first African airline to join Star Alliance, and
with its entry, the alliance’s membership was
raised to 18. Then in February 2010, the airline
appointed Siza Mzimela as its first female
CEO. Today, the airline flies to 36 destinations
worldwide from its hub at O.R. Tambo
International Airport in Johannesburg, using a
fleet of 59 aircraft.
With constant innovations such as these it is
no surprise that South African Airways have
been voted such prestigious awards as ‘Best
Airline to Africa’ for the better part of the last
two decades, and with six new A330-200s
being delivered throughout 2011, the legend of
SAA is set to continue.
history of wings
Africa Wings26
Boeing’s 777: Bringing the World to AfricaThe world’s most capable airplaneis now Africa’s newest airplane
The world just got a little smaller for African passengers. Over the past eight months, the people of Africa saw two significant aviation milestones for the African continent – the first 777-200LR (longer-range) for an African airline and the first 777-300ER (extended range) to be owned and operated by an African airline.
Boeing’s 777 'family' is the flagship in the fleets of leading airlines around the world due to its capability to bring twin-engine efficiency and reliability to the long-range market. The programme’s founders envisioned a 777 family of airplanes from day one. It includes five passenger models and a freighter, which is the newest member and entered service in February 2009 with Air France Cargo.
In November 2010, Ethiopian Airlines became the first African airline to operate the world’s longest-range airplane – the Boeing 777-200LR. Then in June this year, TAAG Angola became the first African airline to own and operate the Boeing 777-300ER.
Boeing’s 777-300ER and 777-200LR Worldliner are two of the longest-range airplanes in the world. Boeing developed the duo to offer airlines additional flexibility in serving airlines’ nonstop routes.
The 777-200LR, with a range of 9,375 nautical miles (17,395 kilometres), nearly doubles the range of its predecessor and connects virtually any two cities in the world. It carries more passengers and more revenue cargo farther than any other jetliner.
The 777-200LR also serves as the platform for the Boeing 777 Freighter, the world’s largest, most capable twin-engine freighter. The first 777 Freighter entered service in February 2009.
The top-selling and largest model, the 777-300ER, offers global airlines the opportunity to establish new routes with a full passenger load. Depending on the airline’s configuration, the 777-300ER can transport more than 350 passengers in a three-class configuration up to 7,930 nautical miles (14,684 kilometres).
And the innovation hasn’t stopped. Boeing engineers, looking for more ways to improve
the 777, are exploring ideas that could reduce fuel burn and emissions, lower the airplane’s weight, and increase its already extremely high reliability.
“Numerous studies are under way,” said Nicole Piasecki, vice president of Business Development and Strategic Integration. “We are always challenging ourselves to make the No. 1 passenger-preferred airplane even better. We intend to remain the market leader and will continue to give airlines even more ways to compete successfully.”
Teams of engineers are looking at advanced aerodynamics and new materials for the wings and leveraging 787 architecture and technology into the 777’s flight deck and systems.
“Our customers tell us they need to customize the interior of the 777, so we are looking at additional ways to do that,” Piasecki said. “We are investing in studies to improve passenger comfort and the cabin architecture using new materials.”
Other studies focus on lowering operating costs, as well as improving the airplane’s environmental profile. “Efficient design means low fuel consumption, less noise and cleaner emissions,” she said.
Improvements over the years don’t just include updates to the airplane. The production process was transformed into a moving production line over a six-year period from 2003 to 2009.
Today, it takes only 49 days from start to finish to build a 777.
“That’s a reduction of 24 percent…,” said Larry Loftis, 777 vice president and general manager.
Other airline revenue-producing ideas such as overhead crew and flight attendant rests, mood lighting, and premium interiors help the 777 to succeed in the marketplace. With 1,233 orders from 63 customers and 942 deliveries as of June 30, the 777 remains highly regarded with airlines, passengers and pilots.
“The 777 is a proven performer, delivers exceptional value and repeatedly is at the top of operator and investor polls for its revenue-generating abilities,” said Loftis.
And Boeing continues to incorporate new technology and innovations into the 777, he added, improving operating costs, airplane performance and – most important – the passenger experience.
By the Numbers
TechnologyNew value-added technology helps to make the world’s most technologically advanced airplane even more high-tech. Each wing has been extended by 6.5 feet (1.98 m) by adding raked wingtips to improve overall aerodynamic and fuel efficiency. The raked wingtips help reduce takeoff field length, increase climb performance and reduce fuel burn.
The body, wing, empennage and nose gear of the airplanes were strengthened and new main landing gear, wheels, tyres and brakes were installed.New semi-levered landing gear permits takeoffs on shorter runways. The struts and nacelles were modified to accommodate the significantly higher-thrust engines. The airplanes are powered exclusively by the General Electric GE90-115BL engine, the world’s largest and most powerful commercial jet engine, producing 115,300 pounds (512 kn) of thrust (derated to 110,100 pounds [489 kn] on the 777-200LR).
EconomicsThe Boeing 777-200LR and 777-300ER have seat-mile costs that are 18 to 20 percent lower than the A340-500 and A340-600 models. Fuel burn is considerably lower — 21 to 22 per cent lower per seat for the longer-range 777s — when compared to the A340-500 and A340-600.
For example, on a typical ultra-long-range route, such as Dubai to Los Angeles, the 777-200LR can carry 21 more passengers and 20,400 pounds (9,250 kg) of additional cargo, compared to the A340-500. The twin-engine 777-200LR also consumes nearly 6,000 gallons (22,700 l) of fuel less per flight.
ComfortAll 777 models have the Boeing Signature Interior, the most spacious passenger cabin ever developed. With its spacious cabin, airlines operating the 777 can offer wider seats, wider aisles, more headroom and more seating flexibility.
Like other members of the 777 family, both the 777-200LR and the 777-300ER offer the widest seats in all classes when compared to the A340. First-class passengers on all 777 models have 21-inch-wide (53 cm) seats, which allow passengers to enjoy the same level of comfort as on the 747. The business-class seats are 20 inches (50 cm) wide — the same width as the A340’s first-class seats. In economy class, 18.5-inch-wide (47 cm) seats — the widest in the industry — are standard compared to 18.0-inch-wide (45 cm) seats on the A340.
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