Page 51 - World Airnews Magazine December 2020
P. 51

NEWS DIGITAL




                                                                     REGIONAL AIRLINE

                                                                     SAYS IT’S ‘NOW OR


                                                                                              NEVER’



























                                                              labour might put a spanner in the works.
                                                               Airlink, a regional airline like CemAir, is now also flying the main
         While airlines worldwide fight for their survival in the   routes. It has changed its colours and announced new routes to
          wake of Covid-19, regional airline CemAir is increasing operations   Dar es Salaam in Tanzania and Lubumbashi in the Democratic
          by 50%.                                             Republic of Congo.
           It was the first local airline to take to the skies after the hard   Singh says the domestic market is recovering, although many
          lockdown ended, entering the mainstream domestic market   corporates are still to change policy to allow the resumption of
          with almost daily flights between Johannesburg, Cape Town and   business travel.
          Durban.                                              FlySafair, according to its marketing manager Kirby Gordon,
           CemAir is also buying three Airbus A319 aircraft and has applied   expects passenger numbers in December to be at only 57% of the
          for approvals for flights to six more destinations in Africa.  previous December. FlySafair is however operating at the same
           Before Covid-19 CemAir provided charter flights and leases to   level as in November 2019 and even expects a bit of growth in
          other airlines as well as scheduled flights to smaller, municipal   December.
          airports in South Africa and destinations in southern Africa.
                                                              DOMESTIC OPERATORS
          GOOD TIME TO BUY AIRCRAFT                           By January there will be seven operators in the domestic market,
          The airline, owned by pilot Miles van der Molen, owns a fleet of 34   namely CemAir, Airlink, FlySafair, Mango, British Airways Comair
          aircraft, but it is “now or never” in terms of growth, says marketing   and kulula.com, as well as newcomer Lift.
          manager Shaniel Singh.                               Of these only CemAir and Airlink offer full service.
           With the industry in crisis there is an oversupply of aircraft and   Flight Centre MD Andrew Stark says the increase in airlines will
          as a result prices have dropped significantly.      stimulate demand and drive ticket prices down.
           Singh says CemAir became “the king of repatriation flights”   Transport economist Joachim Vermooten says it is critical for
          during the hard lockdown.                           airlines to use the right aircraft for each route. The bigger the
           “We brought 8 000 South Africans home from 23 countries,” he   aircraft, the bigger the risk, he says. “When you fail to fill up a large
          says.                                               aircraft, you lose money very fast,” he says.
           This was no simple task. The operator could only apply for the   Airlink’s E190 Embraer aircraft with two seats on each side of
          required permits once there were enough passengers, but the   the aisle works better for social distancing than aircraft with three
          passengers wanted to know when the flight would depart before   seats on each side, he says.
          making their booking.                                Vermooten says domestic load factors are currently at only 26%
                                                              compared to a year ago. He expects this to increase to 30% next
          INDUSTRY SHAKE-UP                                   year and 45% in 2022.
                                                               He says managing supply and demand is very challenging in the
          Singh says the domestic air travel market has changed dramatically   current market and most airlines won’t be able to utilise their full
          due to the impact of Covid-19.                      fleet as they did before the pandemic hit.
           Airlink and FlySafair started flying shortly after CemAir, while   He cautions that the market might be fully served when SAA
          SAA and Comair’s two brands – British Airways and kulula.com –   eventually resumes flying. That might necessitate further subsidies
          have not yet returned to the sky. Comair has reopened bookings   for the national carrier, to the detriment of its competitors. Q
          and hopes to resume flights on December 1, but a court battle with
                                                              Article courtesy: https://www.moneyweb.co.za/
                                                 World Airnews | December Extra 2020
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