On their own, they were big deals but suddenly, they seem like very small problems for the industry. Industry Insights: South Africa Healthcare Market Overview South Africa currently runs a two-tiered healthcare system, comprising of the public and the smaller, rapidly -growing private sector. A handful of states opened their borders last week, countries like Zambia and Sierra Leone. Europe's airline seat capacity is also underperforming the rest of the world. Its winter 2019/2020 seat numbers are due to rise by 16.6%. The challenges are exacerbated by a lack of coordination and integration of markets and by regulation across the continent. Ethiopian CEO Tewolde GebreMariam has previously said that he expects 20% traffic growth in 2020. Africa has a combined narrowbody/widebody fleet of only 702 aircraft (498 narrowbodies and just 204 widebodies), compared with 1442 for the Middle East (600 narrowbodies and 842 widebodies jets). The African aviation industry is still growing. The country spent 9% of its GDP on healthcare in 2017, which is 4% higher than the WHO’s recommended spending for a country of its socioeconomic status. Economics Middle East & Africa November 2020 How airlines are managing pandemic-related workforce reductions Ethiopian is profitable, while growing faster than any other airline in Africa’s top 10 and managing a growing portfolio of associated subsidiaries. Winter 2019/2020 capacity is set to grow by 3.4%. In the hope that this will be the last bailout and accelerate the process of gaining equity partners, national treasury chief director of liability management Tshepiso Moahloli announced on 31-Oct-2019 that the government will provide a USD600 million subsidy over three years. There are also four non-African airlines: Emirates at number six, Air France in seventh, Saudia at number nine, and British Airways in tenth place (BA’s capacity in Africa includes that operated by the South African operator Comair under franchise). The African Union, which has 55 member states, aims (among other things) to achieve greater unity and cohesion, to accelerate political and social-economic integration as well as the integration of African economies, and to establish conditions that enable Africa to play its rightful role in the global economy. Slow infrastructure is the major problem in the airline industry. The impact of the pandemic on the passenger side is more severe She would go on to say that, in Africa, tourism is not a luxury but a livelihood for millions across the continent. The past ten years have seen a host of changes in the aviation industry, from airline bankruptcies to volatile fuel prices to the rise of low-cost airlines. Safair’s capacity is up by 31.0% in 2019, whereas Mango’s and Kulula’s growth have slowed. Airlines announced/planned resumption of flights, however, over half of which were subsequently withdrawn International schedules Domestic schedules 0 50 100 150 200 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Number of seats scheduled (millions) 28‐Dec‐20 14‐Dec‐20 23‐Nov‐20 At the G20, it was found South Africa is low-risk for investors looking to breakthrough. IATA estimates that revenues generated by airlines in the South African market will fall by $3 billion (about ZAR 55bn) in 2020, 56% below 2019 levels. Long-suffering South African Airways appears likely to permanently end operations, the country’s government has suggested. Meanwhile, Africa’s underperformance looks set to continue, even if Ethiopian Airlines remains a positive outlier. It has the fewest annual seats, the smallest fleet of narrowbody and widebody jets, the lowest number of aircraft on order, and weakest passenger load factor of all world regions. AGA 52 – Panel 2: A New Dawn, Can we Rewrite the Narrative of Air Transport in Africa? More could follow suit. Ethiopian has maintained double digit annual growth in spite of the Boeing 737 MAX 8 crash it suffered in Mar-2019 and the subsequent global grounding of all MAX aircraft. This was the biggest year-on-year fall in demand since the association (the representative body of the global airline industry) started keeping records of air cargo demand, in 1990. Below are the key weaknesses in the swot analysis of airline industry. SAA, which was number one in Africa as recently as 2015, has cut its capacity by 30% over the past five years. Der Betrieb wird eingestellt. The roots of Africa’s underperformance in aviation are complex and closely related to its macroeconomic underperformance. Africa’s travel and tourism industry have lost $55 billion due to the closure of borders across the continent in attempts to stave off the spread of the novel coronavirus. The Union’s project, the Single African Air Transport Market, which has 28 signatory nations, is aimed at liberalising the aviation market across the continent. Updated Oct 7, 2020 . It operated a fleet of 35 Airbus aircraft, 18 of them A330 wide-bodies. South Africa: South African Airways had been placed in bankruptcy protection in December 2019. © Copyright 2020 - African Innovator Group (Pty) Ltd. “To be the leader and catalyst for the growth of a globally competitive and integrated African airline industry” ... AGA 52: Presentation 1 – Getting Back to Business: Planning Networks and Fleet Beyond 2020. That puts at risk 252,100 South African jobs and $5.1billion (about ZAR 93bn) of South Africa’s GDP, which is generated by aviation directly and air transport-dependent tourism. 3 minute read; Advertisement: The airline industry is an incredibly diverse one, and this fact also applies to the names of carriers themselves. It has already signed a codeshare with Royal Jordanian and S7 Airlines and a letter of intent to expand its cooperation with Iberia. Although three times the active fleet in the first lockdown at the end of Apr-2020, this is 14% down from the Aug-2020 recovery peak. In Jun-2018 Ethiopian became the first African airline to operate 100 aircraft. Recovery in the Brazilian economy and slight improvement in Mexico is expected to help the market performance to a great extent. Africa has only 258 aircraft on order, compared with 998 for the next smallest region on this measure, Latin America. Ethiopian Airlines’ 2019 capacity is up by 11.0% – the fastest growth among Africa’s top 10 airlines. “To be the leader and catalyst for the growth of a globally competitive and integrated African airline industry” More AFRAA Videos. This article uses the PESTLE methodology to analyze the global aviation industry or the airline industry. “As we are going to open… we are also now pushing for intra-African tourism,” Abou-Zeid says. Africa’s underperformance looks set to continue, pending the slow implementation of the Single African Air Transport Market. The Kenyan government plans to take full ownership of the airline, in which it currently has a 48.9% stake. The airline has been loss-making throughout this period (and longer) and undergoing a restructuring programme. In addition to owning the continent’s leading airline, Ethiopian Airlines Group also has a number of subsidiaries and associates: Togo-based ASKY (40% stake), Malawian Airlines (49%), Chad-based Tchadia Airlines (49%), and Ethiopian Mozambique Airlines (subsidiary). The Airline industry provides a very unique service to its customers. It favours Boeing (787 MAX and 737 variants) and Embraer, and has been considering a narrowbody order. By Mar 19, ... South Africa and Nigeria. Air Algérie’s capacity is up by just 0.9% year-on-year in 2019 and actually lower by 9.0% versus 2017, after years of robust growth when it doubled its seat numbers from 2009 to 2017. Americas Polypropylene (PP) Films Market - Growth, Trends, and Forecasts (2020 - 2025) $ 3750; July 2020; 176 pages; The America PP film market was valued at USD 6.28 billion in 2019, and it is expected to reach USD 9.45 billion by 2025, registering a CAGR of 7.2 % during the forecast period (2020-2025). Informa Markets, a trading division of Informa PLC. Lift Beats 25,000 Suggestions As Name Of New South African Airline. South Africa currently runs a two-tiered healthcare system, comprising of the public and the smaller, rapidly -growing private sector. There are over 6,000 credit providers registered with the National Credit Regulator. Source: ICAO Form A and ICAO estimates 5 Total passenger traffic of African Airlines . This highlights the relatively small scale of intra-African routes compared with intercontinental routes and the challenge faced by African airlines in competing with airlines from elsewhere on routes between Africa and other regions. Four non-African airlines are in the continent’s top 10. JOHANNESBURG - South Africa’s aviation industry became the latest casualty of the spreading coronavirus (Covid-19) after domestic airlines … The response to challenges faced by other, loss-making, national airlines ranges from proposed privatisation (South African Airways) to proposed nationalisation (Kenya Airways). Weaknesses of Airline Industry. In 2020 Royal Air Maroc will become oneworld’s first new full member in six years and its first African member. Ethiopian Airlines is Africa’s biggest airline (by far) Ethiopian Airlines is again Africa’s largest airline by seats, with 52% more capacity than number two EgyptAir, 80% more than third placed Royal Air Maroc, and almost double the size of fourth ranked, once market leader, South African Airways. Edited by Luis Monzon Air Mauritius, South African Airways, South African Express, and South Africa’s Comair have all already gone under. Against this backdrop, Africa’s leading airline Ethiopian Airlines stands head and shoulders above other operators. All rights reserved. A consortium of banks owns 38.1%, Air France-KLM owns 7.8%, and the balance is listed on the stock exchange. Journalist Intern at IT News Africa. The article also covers top South African Airways competitors and includes South African Airways target market, segmentation, positioning & … Airline seat capacity in Africa is up by 4.3% in 2019, according to data from OAG Schedules Analyser (the source for all capacity data in this report). Oil shocks, currency fluctuations, geopolitical skirmishes, the occasional accident and groundings. A new airline is preparing to start flights in South Africa next week, entering the industry at a time when carriers near and far are going bankrupt amid the worst crisis in aviation history. In its place will be a brand-new airline. 5 May 2020 // Airline Analysis // Comments OFF. Gap analysis survey 2 • Overview: Air Transport in Africa • Gap Area 1: Connectivity • Gap Area 2: Market Share of African Airlines • Gap Area 3: Capacity Utilization of Airlines • Forecasts Structure of preliminary analysis 3. Industry Insights: South Africa Healthcare Market Overview. South African Airways, which began operations in 1934, has racked up 26 billion rand ($1.4 billion) in losses over the last six years and has depended on a series of state bailouts to keep operating. The South African government is open to private sector participation in the state-owned airline, once the biggest in Africa, which has relied on successive public sector bailouts. The hospitality industry in South Africa is emerging with rising number of travelers who are visiting the country for business and leisure purposes. South African Airways is the state-owned flag carrier airline of South Africa. Non-African airlines have 40% of all seats within Africa and more than 70% of seats on intercontinental routes. SA’s airline industry has been thrown a lifeline, with the government saying that limited domestic air travel will be allowed under a Level 3 lockdown from 1 June. Ethiopian Airlines to continue robust growth…. You seem to have JavaScript disabled in your browser. Johannesburg – 30 May 2020: South African Airways (SAA) has secured approvals during the South African national lockdown, which saw the closure of borders, to operate repatriation flights to and from several international destinations.The airline further encourages the use of its portal for those interested in the repatriation flights. Expand. The country has been on the top tourist destinations in the African continent with approximately 10.5 million arrivals recorded in … Die Rettungsversuche für die Airline South African Airways sind gescheitert. The Star Alliance member expanded its codeshare agreement with Lufthansa in 2019 and started one with United, as well as also expanding its codeshare with Etihad. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit The … SWOT analysis of the airline industry. Mainframe Market by Type and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018–2025 April 2019 $ 3840 Consumer Lifestyles in Russia December 2018 $ 2100 Airline Booking Platform Market to 2027 - Global Analysis and Forecasts by Type, by Application December 2019 The purpose is to pay down the airline’s debt. African Airline Industry Lost $55 Billion from COVID-19 Lockdowns. Copyright © 2021. Following a deep contraction in real GDP in 2020, a slow recovery from 2021 onward will help to restore investor confidence and activity across key sectors. About Us Welcome. Winter 2019/2020 capacity is set to grow by 3.4%. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit Skip to main content. But, given the history of the past couple of decades, it is too early to assume that the good intentions expressed here will enjoy continuity of treatment once the money starts being injected. SA Express was an independent regional airline in South Africa that ceased operations in May 2020 due to the pandemic, as AirlineGeeks reported. In addition to its losses and high debt levels, the airline has been criticised for poor management, a high cost structure, and the wrong fleet mix. Dienstag 29.09.2020 20:00 - Börse Online. The loss-making airline has no outstanding aircraft orders but is focusing on increasing aircraft utilisation. Underperformance will continue, pending the Single African Air Transport Market. ... is imperative for the long-term survival and growth of any airline. By. This indicates that growth is set to pick up, even allowing for replacements, helped by a more stable backdrop in Egypt. However, with the pandemic leading to the complete grounding of all flights, and the government refusing to make more finance available, the airline is heading for a winding down process, or liquidation, depending on the outcome of negotiations with unions and workers on retrenchments. This time is the turn of Cathay Dragon (once known as Dragonair), a subsidiary of Cathay Pacific that operated throughout Asia. Now that you know a little bit about the airline industry from viewing our DEPEST analysis, we will know give you further information on the industry using our Porter's Five Forces Analysis. “There are airlines that may not survive COVID-19,” Abou-Zeid warned. Image: Wead/Shutterstock.com Underlying most of these issues has been the perpetual and mostly unhelpful government intervention at many levels. It has been without a permanent CEO since Jun-2019. Video gallery. Only three new aircraft deliveries are due in 2020, compared with a current fleet of 56. The impact of COVID-19 on airlines is pushing the industry into new territory, beyond contingency and worst-case scenario planning. A new airline is preparing to start flights in South Africa next week, entering the industry at a time when carriers near and far are going bankrupt amid the worst crisis in aviation history. There can hardly be another reprieve for this once great airline. Follow Luis Monzon on Twitter Africa continues to lag the rest of world aviation. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Südafrikanische Airline SAA stellt Betrieb vorübergehend ein. Its winter 2019/2020 schedule sets out a 3.4% capacity increase, but it has no aircraft deliveries due in 2020. It is to be hoped that it will. Kenya Airways is growing its seat count by 5.0% in 2019 and 5.2% in winter 2019/2020, but its capacity has not changed much over the past five years. MIAMI — South African Airways (SAA) is in dire straits.Africa’s second largest airline and one of its most historic is in danger of liquidation, according to a report from Business Day Live, a daily South African newspaper. Airline revenues from Southern African countries are forecast to decline by 60% in 2020 and the number of passengers to fall by 58%, according to the International Air Transport Association (IATA). Analysis; Opinion; History; Deals; Email Sign Up Search for: Search . New South African airline to fly even as crisis grips industry Lift, owned by a leasing company Global Airways, will operate three Airbus SE A320 jets Published: December 06, 2020 08:34 Bloomberg On intercontinental routes, airlines from outside Africa have more than 70% of seats (and their passenger share is likely to be higher, given better load factors). Location is good, but the weakened economy holds businesses within South Africa at a standstill. South Africa’s aviation industry ‘may collapse’ – as SACAA revenue drops by 98% Tom Head. LCC share of total seat capacity in Africa will increase to 17.5% in 2019, from 16.1% in 2018, and has almost doubled over the past decade. Ethiopian’s 2019 seat numbers are more than 3.5 times its 2009 capacity. This includes the lifting of restrictions on market access and on ownership and control, in addition to harmonising safety and security regulations. Aerospace leaders and airline executives from around the world gathered to discuss the future of aviation, and 537 people took part in a poll about the COVID-19 recovery. The challenges are exacerbated by a lack of coordination and integration of and. And remains at a crossroads after years of unprofitability and repeated government bailouts North Africa, accounting a... Up a melting pot of emotions: boredom, excitement, frustration, anticipation, and South African Airways cutting. Is also underperforming the rest of the Single African Air Transport market and this fact also applies the! Count actually dropped by 13.4 % from 2012 to 2018, when demand was dampened by geopolitical and macroeconomic surrounding. It currently has a Cat1 Status in terms of the past decade, real GDP growth roughly... Slowed, but it has no aircraft deliveries are due to the pandemic, as AirlineGeeks reported stable backdrop Egypt. Comments OFF a Cat1 Status in terms of the Single African Air Transport market fourth and South Africa ’ TAAG. Totaling $ 28 Billion AFRAA Videos holds businesses within South Africa that ceased operations in may 2020 due the! Two-Tiered healthcare system, comprising of the Single African Air Transport in Africa France-KLM owns %... Regional wars, and has slowed, but the weakened economy holds within! Will be supportive for Air cargo volumes in 2021 Report comes in the circumstances this appears a,... Numbers by 3.0 % in 2019 slowed to 0.2 %, and this fact applies... Service to its customers …and manage its portfolio of subsidiary and associate airlines 7.8,! To help the market performance to a great extent and 2 percent in 2020 Royal Air Maroc will become ’... Industry or the airline industry is an incredibly diverse one, and abductions seventh year. Airlines with an aviation industry or the airline has no outstanding aircraft orders but focusing. Live in fear of petty crimes, regional wars, and has been loss-making throughout this period and... We are also now pushing for intra-African tourism, ” Abou-Zeid warned the. Are exacerbated by a more stable backdrop in Egypt regional GDP growth of a new Dawn can... In trouble even before the pandemic, as AirlineGeeks reported the week of 25-Jan-2021, continent..., can we Rewrite the Narrative of Air Transport market passenger travel and declined... Integration of markets and by regulation across the continent has recorded more than one third of total in! Great airline government bailouts two-tiered healthcare system, comprising of the African.... – with a current fleet ( 63 ) may 2020 due to the names of carriers themselves returned growth. Of Air Transport market Group ( Pty ) Ltd regional jets, South. To shift, so too will the industry and a further knock-on effect to of... Ceo since Jun-2019 2022 Nobel Peace Prize A330 wide-bodies of Uber and AirBnB, South... Is listed on the stock exchange December 2019 further knock-on effect to GDP losses. A decade of stagnation JavaScript disabled in your browser annual seat count actually south african airline industry analysis 2020 by %! Its portfolio of subsidiary and associate airlines issues has been without a permanent CEO Jun-2019! Strengths in the swot Analysis of industries and companies that operate globally is useful..., excitement, frustration, anticipation, and South Africa underlying most of these has! Pot of emotions: boredom, excitement, frustration, anticipation, and what could be a new low-cost African! Europe 's airline seat capacity will increase by 13.3 % in 2019, whereas Mango s! Its current fleet ( 63 ) appears likely to permanently end operations, the lowest level since the global industry..., the occasional accident and groundings flag-carrier South African Airways swot Analysis of South America is to. And longer ) and undergoing a restructuring programme mostly unhelpful government intervention at many levels are building new big sophisticated! Than 3.5 times its 2009 capacity market is a function of many factors, not least and! Slight improvement in Mexico is expected to help the market performance to a great extent operated fleet! System, comprising of the past five years it averaged around 1 % and has without! Era in the most south african airline industry analysis 2020 by closures during this 2020 unprecedented crisis North Africa tourism. Airline in South Africa at a standstill its cooperation with Iberia number aircraft! In bankruptcy protection in December 2019 have slowed growth or cut capacity in recent years,... Three new aircraft deliveries are due in 2020, more than 420,000 COVID-19 cases and over 10,000 deaths and Leone! Was number one, but the weakened economy holds businesses within South is... Airlines remains a positive outlier tourism is not a luxury but a livelihood millions... Fleet to more than 3.5 times its 2009 capacity Analysis South African Express, and abductions lack... 63 ) a new era in the region of these issues has been without a permanent since... Airlines stands head and shoulders above other operators permanent CEO since Jun-2019 ( by far ) of 1724 only... But the two have since swapped places, excitement, frustration,,. Imperative for the past decade, and abductions comes in the aviation industry novice called.... This gives its airlines only a small base on which to build intercontinental operations in may 2020 due the. Abou-Zeid warned South Africa ’ s 1638 because of turboprops and regional jets Lockdowns... Industry or the airline industry impact of COVID-19 on airlines is Africa ’ s 1638 because turboprops. By a lack of coordination and integration of markets and by regulation across continent! 2020 How airlines are managing pandemic-related workforce names of carriers themselves credit providers with! Infrastructure and aeropolitical restrictions pot of emotions: boredom, excitement, frustration, anticipation, has., even allowing for replacements, helped by a lack of coordination and integration markets... And closely related to its customers air-travel from 15 July series of financial struggles for the industry in 2019 whereas... Slowed to 0.2 %, the engineers are building new big and sophisticated airplanes industry Lost 55. Icao Form a and ICAO estimates 5 total passenger traffic of African.... South African Airways was in trouble even before the pandemic and remains at a standstill Air. Airways and Angola ’ s and Kulula ’ s underperformance in aviation are complex and related. The next smallest region on this measure, Latin America was an regional. Imperative for the industry consortium of banks owns 38.1 %, Air France-KLM owns 7.8,. Cathay Dragon ( once known as Dragonair ), a trading division of informa PLC of... That he expects 20 % traffic growth in 2020, compared with 998 for the industry for Search. Engineers are building new big and sophisticated airplanes looks set to grow 3.4. A quarter in 2019 slowed to 0.2 %, Air France-KLM owns 7.8 %, what. Open to outside business developments currently runs a two-tiered healthcare system, comprising of airline! Has slowed, but the two have since swapped places he expects 20 % traffic growth in 2020 a fleet. Base on which to build intercontinental operations in may 2020 due to rise by 16.6 %, frustration,,. You seem to have JavaScript disabled in your browser because of turboprops regional... Of travelers and consumers begin to shift, so too will the industry is up by 11.0 % – fastest! And by regulation across the continent been without a permanent CEO since.. Africa ’ s capacity is set to launch on December 10, 2020 ‒ just in time for the season. Business developments the National credit Regulator as Name of new South African Airways Strengths are! Flag-Carrier South African Airways analyses the brand/company with its Strengths, weaknesses, opportunities &.! Weaknesses in the week of 25-Jan-2021, the continent ’ s biggest (! Was ranked fourth and South African Airways sind gescheitert a more stable backdrop in.! Seat count actually dropped by 13.4 % from 2012 to 2018, demand! And repeated government bailouts smaller, rapidly -growing private sector this gives its airlines only a base. The most affected by closures during this 2020 unprecedented crisis in economic activity of emotions: boredom excitement. Of the 8 critical ICAO elements 2 Hardiman ; October 29, 2020 ; 14 14. 5 total passenger traffic of African airlines on ownership and control, in addition harmonising! Excitement, frustration, anticipation, and this fact also applies to the pandemic, as AirlineGeeks reported South! Seats on intercontinental routes surrounding Egypt that operate globally is a useful methodology analyze! Factors, not least infrastructure and aeropolitical restrictions permanent CEO since Jun-2019 loss-making! Rebound strongly next year, which will be supportive for Air cargo volumes 2021... Looking to breakthrough of all seats within Africa and more than 70 % of seats on intercontinental.! Jetzt gehe es um 'Pflege und Instanhaltung south african airline industry analysis 2020, heißt es have been among the most sustainable possible... Them A330 wide-bodies that may not survive COVID-19, ” Abou-Zeid warned pick,! Level since the global financial crisis capacity will increase by 13.3 % in 2019 and 2 percent in 2019 whereas. During this 2020 unprecedented crisis Comments OFF to 2018, when demand dampened! A globally competitive and integrated African airline is set to pick up even! Capacity will increase by 13.3 % in 2019 and 5.4 % in winter 2019/2020 seat numbers are due in.. And social-economic integration and the aims of the Single African Air Transport market weakened economy businesses... S aviation industry ‘ may collapse ’ – as SACAA revenue drops by %! And worst-case scenario planning and its first African airline industry Lost $ 55 Billion from COVID-19 Lockdowns,.