The Guvnor
12th Jan 2002, 15:44
SAA Eyes African Skies for Big Leap
Vanguard (Lagos)
January 11, 2002
Posted to the web January 11, 2002
Jimoh Babatunde
Lagos
SOUTH African Airways has espoused its plans to take ownership of the African Airspace through bilateral alliance with other Africa airlines this year.
In a forward article in Sawubona, the airline s in flight magazine for the airline travellers, Mr. Andre Viljoen, SAA President and CEO wrote about the airline s plan to enter into joint ventures with African carriers.
"In essence, SAA is taking ownership of the African airspace in alliance with regional partners, and we are moving rapidly to safeguard our footprint on the continent. By mobilising joint resources and acting in concert success as a continental and thus a global player beckons on us, but flying alone can only lead to marginalisation."
Mr. Viljoen revealed that out of Africa s 54 countries, SAA has bilateral agreement with 41 and that the airline covers every major destination within South Africa itself.
The SAA President revealed that the need to look inward becomes inevitable for the airline that operates in a dollar-based industry which is highly vulnerable to the vagaries of international currency fluctuations.
"More than 50% of SAA s fixed costs are in dollars. If we consider that South African rand has effectively devalued by over 40% against the US dollars over the past year alone, it is clear that we have to assess out position in the new world order of global aviation realities."
"Against this background SAA has reviewed its entire strategic approach and, in future, we will be informed by our international and, more particularly, our Africa strategies."
Mr. Viljoen revealed that flights into Africa which fetched the airline about 190 million rand last year is less competitive and far more profitable than its international service which is highly competitive and increasingly costly.
"As a result, the very area of strategic focus for SAA now is Africa, which is the natural marketplace for the continent s leading airline."
SAA, he noted, has come up with the three-hub strategy to better reflect the three-hub approach they see operating across the continent."
Johannesburg International Airport, Viljoen wrote, will remain one of the hubs, to be joined by a hub in East and West Africa respectively.
Mr. Andre Viljoen said SAA s approach will be to develop formal bilateral alliances with other African airlines, "in much the same way as we have developed strategic partnerships with leading international carriers. The pattern will be joint ventures with African carriers."
He added: "SAA is five times larger than any other African Carrier. With open sky policy being accepted by African heads of state at Yamoussoukro in Cote d Ivoire and with many smaller players struggling to survive the turbulence of globalisation, SAA has a window of opportunity to become the leading continental player".
Vanguard (Lagos)
January 11, 2002
Posted to the web January 11, 2002
Jimoh Babatunde
Lagos
SOUTH African Airways has espoused its plans to take ownership of the African Airspace through bilateral alliance with other Africa airlines this year.
In a forward article in Sawubona, the airline s in flight magazine for the airline travellers, Mr. Andre Viljoen, SAA President and CEO wrote about the airline s plan to enter into joint ventures with African carriers.
"In essence, SAA is taking ownership of the African airspace in alliance with regional partners, and we are moving rapidly to safeguard our footprint on the continent. By mobilising joint resources and acting in concert success as a continental and thus a global player beckons on us, but flying alone can only lead to marginalisation."
Mr. Viljoen revealed that out of Africa s 54 countries, SAA has bilateral agreement with 41 and that the airline covers every major destination within South Africa itself.
The SAA President revealed that the need to look inward becomes inevitable for the airline that operates in a dollar-based industry which is highly vulnerable to the vagaries of international currency fluctuations.
"More than 50% of SAA s fixed costs are in dollars. If we consider that South African rand has effectively devalued by over 40% against the US dollars over the past year alone, it is clear that we have to assess out position in the new world order of global aviation realities."
"Against this background SAA has reviewed its entire strategic approach and, in future, we will be informed by our international and, more particularly, our Africa strategies."
Mr. Viljoen revealed that flights into Africa which fetched the airline about 190 million rand last year is less competitive and far more profitable than its international service which is highly competitive and increasingly costly.
"As a result, the very area of strategic focus for SAA now is Africa, which is the natural marketplace for the continent s leading airline."
SAA, he noted, has come up with the three-hub strategy to better reflect the three-hub approach they see operating across the continent."
Johannesburg International Airport, Viljoen wrote, will remain one of the hubs, to be joined by a hub in East and West Africa respectively.
Mr. Andre Viljoen said SAA s approach will be to develop formal bilateral alliances with other African airlines, "in much the same way as we have developed strategic partnerships with leading international carriers. The pattern will be joint ventures with African carriers."
He added: "SAA is five times larger than any other African Carrier. With open sky policy being accepted by African heads of state at Yamoussoukro in Cote d Ivoire and with many smaller players struggling to survive the turbulence of globalisation, SAA has a window of opportunity to become the leading continental player".