2013 MARCH / Vol. 5 / No. 3 /
GA
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forecasted to grow faster than the global
average, the aircraft maker said. Africa's
growing economic prosperity is expected to
fuel greater demand for long-haul air travel.
Led by banks in South Africa, interest by
the continent's bankers in aircraft investment
has been growing steadily. It is part of a global
trend in which regional commercial banks
have been stepping up financing of commercial
jetliners, primarily for deliveries for airlines
operating in their home markets or regions, as
major commercial banks in Europe, a primary
source of bank capital for airlines, have been
challenged by Europe's economic crisis.
"South African bank interest is clearly on
the rise," said Suzanne Raubenstine, Boeing
Capital's senior director for the region and the
event host." We've had banks there contribute
to progress payment financing and also
Export-Import Bank of the U.S. export credit
support. We've also seen new entrants into the
aviation sector from public and private sector
development finance institutions. We are seeing
an increasing regional financing presence into
the aircraft sector. This round table is meant to
encourage that momentum," Raubenstine said.
Boeing told the financiers it is dedicated
to working with African airlines and financiers
to efficiently address operational and financial
requirements of the continent. Jet fuel prices
remain at an elevated level, which is accelerating
the requirement for airlines to upgrade to
more fuel efficient aircraft and to assess their
strategies to update aging fleets, many of
which have depended on used equipment.
"Forty five percent of Africa's fleet is
more than 15 years old," said Miguel Santos,
Boeing's director for Africa Sales and vice
president of the company's international
office for the region. "We have been seeing
African airlines invest in their aircraft to
bring in cutting-edge technology and the
latest in interior comfort as they upgrade their
airplanes to become more competitive."
In Boeing's latest commercial aviation
market forecast, Africa is forecast to require 900
new airplanes over the next two decades, with a
value of approximately U.S. $120 billion, with
more than two-thirds of those jetliners expected
to meet demands for the market's growth. ·
SAA
SAA's current fleet stands at 9 A346s, 6 A340
300s 1 340 200 6 A330 200s 18 B737 800s 11
A319s. Its been a tough year with the resignation
of CEO and now there is a new one acting. There
is no magic formula to make things right but it's
going to take some really hard decision making.
The fleet renewal decision is on hold but
Chief pilot, Capt Johnny Woods feels 250
seaters are about right for the current market
and they will be twins. The problem they have
is that both manufacturers delivery slots are four
years away. Expect to see A350 350 XWBs or
B787 900s/B777 200 LRS in SAA colours.
A new cadet program was
launched which looks good.
Airlink
The fleet was expanded by 2 ERJ 135s to 12 and
two Avros to 10. J41s remained at nine with the
other four being used for cargo and leased out in
Zambia. Mthatha became a jet service.
The new Maun Route is working well
says CEO Rodger Foster and may be
switched to the 83 seater Avro RJ soon.
Comair
Four of the new B 738s have arrived from Seattle
and are in service - they look very good in the
new colour scheme. They will now probably
phase out the older BA B737 300s.
CEO, Erik Venter, reported a loss in the
first half of last year. Then they made Cape
Town a base and opened their own catering
section and hopefully the 2nd half was
better. Lanseria operations remain strong.
SA Express
SA Express's fleets consists of 8 CRJ 200, 7
CRJ 700 and 7 Dash 8 q 400s. They launched
new routes for Durban to Harare and Lusaka
making it a hub.
Mango
CEO, Nico Bezuidenhout also feels
that its been a tough year but they grew by
one aircraft and leased in a B737 500 to
operate the new JHB/PLZ/CPT routes.
They have a history of product differentiation
specials which includes wi-fi connectivity.
NEW AIRLINES
FASTJET
Their CEO, Ed Winter, awaits department of
transport consent to the proposal to take over
1time routes.
Fly Go Air
This carrier, it appears, will be based at Lanseria
and is not operational yet but has some inter-
esting routes on their proposed schedule using
CRJ 200 equipment.
Skywise
Rodney James new airline
The promoters here are Rodney James, former
1time CEO, and his former 1time colleagues,
Glenn Orsmond, Mike Kamminsky and Johan
Borstlap formerly of Sun Air.
This airline awaits regulatory approval
but the plan is to start with B733s serving
JHB/CPT initially. Rodney feels that the
B733 represents the best trade off of terms of
operating expense vs capital acquisition costs.
So, where have we come from in 2012
and where are we going? Well the combined
effect of the very high fuel prices and
sluggish demand caused a lot of problems
for Velvet Sky and 1time, both of whom we
unfortunately lost from the industry last year.
Talking to the players we are expecting
another very tough year and there are currently
low yields in Africa according to IATA.·
South African Airline Update