No huge price hikes for SAA

"There will be no astronomical price increases but the company will only recover the money through levies," Ngqula said.

He said the good about recovery is that when the oil prices come down the levy would come down as well, to the benefit of their customers.

"You need connectivity for Africa's economy, so you can't increase prices but manage the situation," he said.

Ngqula said international fuel prices had a major impact on their business.

He was addressing a media briefing at Airways Park on the plans they were developing with Star Alliance, an international group of airlines.

SAA is the only African airline affiliated to Star Alliance and they are currently discussing better ways of servicing the continent. Egypt Air will join at the end of the year.

Star Alliance's CEO Jaan Albrecht said Africa was very important in their alliance because it offered growth and opportunity.

Bringing Africa to the world

"Star Alliance has identified Africa as number one destination in terms of growth."

He said Africa was growing and that necessitated the need for an increased number of routes.

"Going forward we will be consolidating routes to Africa. This would bring Africa to the world and bring the world to Africa," he said.

Ngqula said with the view to the Confederations Cup next year and the 2010 tournament, Star Alliance was key in ensuring that SA delivered a successful 2010.

"A strong SAA with Star Alliance support is good for South Africa and good for 2010."

He said among the challenges they were facing as air traffic operators in Africa was the implementation of the Yamoussoukro Declaration and by-lateral agreements regarding access and routes.

"We are forced to negotiate with governments throughout the continent and that is a challenge," he said.