Airlift Strategy

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1 1 The Portfolio Committee on Transport Airlift Strategy to the Broader 2010 Context 05 th September 2007

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The Portfolio Committee on Transport Airlift Strategy to the Broader 2010 Context 05 th September 2007. Airlift Strategy. Airlift Strategy was approved by Cabinet in July 2006 - PowerPoint PPT Presentation

Transcript of Airlift Strategy

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The Portfolio Committee on Transport

Airlift Strategy to the Broader 2010 Context

05th September 2007

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Airlift Strategy

Airlift Strategy was approved by Cabinet in July 2006A holistic view of the international air transport network in support of South Africa’s national interests is a key element of the Airlift Strategy.

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Airlift Strategy

The Airlift Strategy, is aimed at supporting national economic growth through greater alignment with the tourism and trade markets and unblocking obstacles to growth.

In particular the strategy allows for greater market access to support growth and competition in the air service industry, through the creation of an enabling regulatory framework, which inter alia, allows for capacity to be negotiated ahead of demand.

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Tourism

Business Pax

Freight

BASA

Airlines / Stakeholders

Government

Entry Points

Traffic Rights

Frequencies

Airlift Strategy

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Strategic Planning Committee

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Airlift Strategy - SPC

Bilateral Air Service Agreements are an instrument of transport and forms an integral part towards transport connectivity for the country.

In terms of the Airlift Strategy, the views of the Department of Transport and that of other government departments are taken into consideration. These views are factored in with the views of the industry stakeholders and are formulated in a balanced approach towards a mandate for bilateral air service negotiations.

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Overview

Airlift Strategy requires a tool in the format of an Implementation Plan – guide and give effect to significantly enhance BASA between RSA and other countries.Analysis of existing BASA and Gap Analysis.Route Utilization.RSA government role in the aviation industry is one of principle enabler and regulator.

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Objectives

Increasing contribution to accelerated economic growth.Increase the mobility of the domestic market.Improve Safety and Security.Aviation Community well-being; andEnvironmental responsibility.

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Objectives

Intent - Airlift Implementation

Liberalizing International air service agreements.Allocating capacity under existing bilateral air service agreements – relation to airline business plans.Liberalising international aviation multilaterally.

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Objectives

Strategic Approach - Airlift Implementation

Stability and Sustainability of the network of air services serving South Africa.Setting of negotiating mandates – impact assessment on RSA and its key markets.AU – External Air Transport Policy (EU Ownership Clause)5th Freedom Rights and rapid liberalisation - (6th Freedom traffic Rights).

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Tactical Approach

Tactical Approach - Airlift Implementation

• Anti-competitive behaviour / market dominance.

• Reciprocity / market share.

• Airline Alliances / code share.

• Seasonality / Special Events

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Mandate

Constitution of the Republic of South Africa, 1996 must be upheld.

International Air Services Act No 60 of 1993.

Air Services Licensing Act 115 of 1990.

RSA government role in the aviation industry is one of principle enabler and regulator.

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Mandate

International Air Services Act No 60 of 1993.

(a) to promote trade with, and tourism to and from the Republic;

(b) to promote competition between persons who operate international air services;

(c) not to unjustifiably prefer any licensee over another;

(d) to promote a high standard of safety in the operation of international air services;

(e) to promote the development and interest of the local international air services industry;

(f) to promote the interest and needs of users or potential users of air services to the Republic.

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DEAT Airlift Requirements

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Capacity Utilization

Foreign Airlines

211

258

Unused Capacity

Utilised Capacity -Foreign Capacity

South African Airlines

232237

Unused Capacity

Utlised Capacity -South African

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Traffic Rights

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Other Key Airlines

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UAE Carrier – Catchment Points

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OFFICIAL FIFA PARTNERS

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United Arab Emirates 2007 2008 2009 2010

JNB: 3 flights Effective Sept 07

CPT: 7 flights DUR: 7 flights

Effective Jan 08

CPT: 7 flights DUR: 7 flights

Effective Jan 09

JNB 7 Supplementary flights and/or future

expansion of flights would be considered Total capacity increase: 38

The utilization of additional frequencies for 2009 & 2010 is subject to an evaluation - review of the utilization of the additional frequencies allocated for 2007 & 2008.Within six (6) months, a commercial agreement - concluded & packaged for the FIFA 2010 World Cup event which will also be considered in the review process.

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Entry Points – South Africa

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Entry Points – South Africa

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Use it or Loose it Principle

IASC addressing unused capacity

Airport slots – Unused airline slots allocated by ATNS are taken away and as such are available for take up by another carrier.

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Addressing Unused Allocated Capacity

International Air Services Act No 60 of 1993

Section 21 Hearings

In terms of the above section the International Air Services Council is addressing unused frequencies. Licensees are afforded at least 90 days to commence servicing the routes.Failure to do so – license is withdrawn and readvertised for allocation.

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Instruments

Licensing Act provides for the Authorization of Supplementary Flights.

Air Services Framework – makes provision for the allocation of Supplementary Flights.

Authorisation of Charter Flights.

Increase frequencies – ASA.

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Aviation Sub Sector Task Team

Strategic objective for FIFA WC 2010 is to provide a safe and secure aviation operational environment, while maximising efficiency in delivering on the transport guarantee.Mobilise the aviation industry to meet the challenges and demands in providing sufficient capacity pre - during – and post the event.Optimally utilise all the resources available with limited additional financial cost - no guarantee of future sustainability.

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Aviation Sub Sector Task Team

A breakdown of the operational concept plan:

focus on airports that can provide primary; secondary and support functions (e.g. ORTIA; Lanseria; Grand Central)slot co-ordination for all airports within the network.Seat capacity and airspace management.

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Aviation Sub Sector Task Team

Primary points of entry for International will be via the “Golden Triangle”, - i.e. (ORTIA; CTIA and DIA / La Mercy).Based on ACSA’s existing and planned infra-structural developments, designed to exceed the expected volumes during WC 2010.‘Smaller’ ports of entry, i.e. (Lanseria; Polokwane; KMIA), are best suited for the inter-continental and regional operations that are expecting high traffic volumes.

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Aviation Sub Sector Task Team

Scheduled aircraft network planning and utilisation will be determined by the secondary airports handling capabilities and operational expertise.The three primary airports - exposed to ‘big events’ in the past and therefore more geared to the expectations.Gauteng has three (3) host venues during the event which requires aircraft movement from domestic as well as regional and international.

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Aviation Sub Sector Task Team

The Gauteng secondary and support airports will provide relief for ORTIA on General Aviation traffic and private / business jet movements.Airspace management and slot co-ordination will mean operational hours to be extended to accommodate the expected increase of unscheduled flights.Commercial airline operators, both domestic and international, are geared to increase fleets (seat capacity), temporary through various options.

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Aviation Sub Sector Task Team

Processing of all applications will be prioritised by the councils.Consultant studies indicate that the current seat capacity on scheduled domestic operations with a displacement of 70% of the existing domestic market.Additional requirements at the secondary airports must include all local service providers and relevant government agencies.

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Conclusion

To fulfill delivery of the airlift strategy and ensure that our policy relating to international aviation trends are responded to accordingly thus ensuring that South Africa has adequate airlift capacity to contribute effectively to economic development and a successful 2010 World Cup.

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We sincerely appreciate you most valued time afforded to us

for this presentation.

THANK YOU