Showing posts with label saa. Show all posts
Showing posts with label saa. Show all posts

Thursday, October 21, 2010

An interesting... willy nilly flight schedule


Jacob Zuma, in Cairo for a high-level state visit, has publically announced that infrastructure has contributed to holding back development of trade in Africa. He specifically mentioned air travel and the lack of direct flight routes within our continent being a concern:

"If you wanted to reach some countries on the continent, you'd have to go to Europe first, then sleep on the way, wake up in the morning, wait until sunset and then fly back to Africa. That must come to an end." (quote pinched from Fin24's report (and to be fair, he also said a load of other stuff too)).

In doing so, Zuma has made it clear that he has no idea how airlines or air travel works. Firstly (small point), he is in Cairo, from which there is a direct and daily Egypt Air flight to Johannesburg. Ahem, it's our own SAA that doesn't fly to Cairo.

Secondly, airlines run on tiny margins, so routes that don't make money are cut, and cut swiftly. If there is no direct flight between Gabarone and Ouagadougou, it is because the route is not commercially viable. Once cannot expect an airline to make a loss just so we can fly direct everywhere.

One of the reasons Zuma lists transfers in Europe (for some reason not mentioning the Middle East) is because there is commerical traffic between African cities and European ones. There is enough to justfy a route between Lagos and London with British Airways, for example. There is also enough to sustain a route between Durban and Dubai (on Emirates). Frankfurt and Addis Ababa (Lufthansa). Madrid and Casablanca (Iberia). Paris and Algiers (Air France). And so these are the large flight centres we use if SAA or one of the big other African airlines can't deliver us there.

All of these major European and Middle Eastern airlines fly to other African destinations, so the Emirates flight from Durban can link us up with Khartoum. I don't see enough traffic between the Banana Boys and one of the world's worst summer holiday destinations to make that a viable route, but as both sustain enough traffic to make a route to Dubai viable, it works.

If Zuma wants these direct routes he should start by making our perenial somehow-loss-making-even-though-it-has-amazing-and-busy-routes parastatal to start hooking up with African centres.

There is no SAA flight route between Johannesburg and Cairo (although there is codeshare with Egypt Air), or Joburg and Kigali, Abuja, Abidjan, Tripoli, Algiers or anywhere in Morocco. Why do you think this is, Mr Zuma?

SAA only serves about 40 destinations (excluding Star Alliance partners). Kenya Airways (with Sky Team alliances) and Ethiopia Airlines serve about 50 destinations.

Now, compare that with British Airways which serves 370, Lufthansa which operates routes incorporating 202 cities on its own. Emirates flies to over 100. Is it any surprise that decent flight connections to African destinations sometimes involve leaving the continent? Can I hear a resounding NO?

Mr Zuma, if you want direct flight routes around Africa, develop the trade. Set the gound work. Build the relationships. Due to profitability opportunity and gaps in the market, the airlines will follow you.

Do not expect them to lead the way.

Wednesday, October 06, 2010

An interesting... SAA drops its Cape Town to Durban route


Image from flysaa.com


SAA has anounced that it will no longer be operating its Durban-Cape Town route anymore and will use Mango, its low-cost carrier, to service it instead.

Twitter has already gone mad about it today, as has the comment section beneath the article I linked to above. People find it odd (some find it offensive) that the national carrier won't be flying between the 2nd richest city in the country (Durban) and the third richest (Cape Town) anymore, but there is a case to be made for SAA making this decision.

Firstly, as stated in the article, most of the traffic between the two cities is holiday traffic. Something one will notice, on occassion, is that many holiday destination to holiday destination flight routes fail. If there is not enough business traffic to maintain the commercial viability of a flight route then it has to be pulled. Does anyone remember the failed venture of having flights between Cape Town and Miami? No business travel = fail. Business travel is undeniably important, particularly for a full-service airline (as opposed to low-cost - SAA and BA are full-service airlines, Kulula, 1Time and Mango are low-cost airlines) and it's why JNB-CPT and JNB-DUR are two of the busiest flight routes in the world.

Secondly, we often complain about the excessive wastage of money spent by parastatals. This was a difficult decision made by SAA to concentrate on its more-money-making routes throughout Africa. For the first time I can think of off the top of my head, taxpayers are complaining about a parastatal wasting LESS of their money. We can't just have a flight route because we sommer want one. If, according to the capitalist principles espoused by the readers of the site I linked to above, there is a viable business route between Cape Town and Durban, someone will step in and fill it.

Thirdly, there are four other airlines from which to choose, and if you are a businessman who MUST sit in the snooty part of an aeroplane, then fly British Airways. It's really not that much harder to type in ba.com rather than flysaa.com and it's a tiny bit more expensive, but you're expensing it anyway.