Africa Wings Issue 14

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:

[email protected] 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

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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

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French Translation:

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Camerapix Publishers International Limited

Rukhsana Haq

Raphael Kuuchi

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Azra Chaudhry (UK)Rose Judha (Kenya)


[email protected] 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.


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


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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


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

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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


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


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: [email protected]

The Commercial Director: African Airlines AssociationPO Box 20116, 00200 Nairobi, KenyaTel: +254 (20) 604855, Fax: +254 (20) 601173Email: [email protected]

ADVERTISE TO AFRICA WINGS


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


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.


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

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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


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.

Africa Wings Issue 14

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Transcript of Africa Wings Issue 14