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Cape Town – The biggest challenge faced by national carrier South African Airlines (SAA) is whether
it can successfully compete on the routes between Southern Africa and
Europe, according to Dr Christoph Franz, CEO of Europe's leading airline Lufthansa.
“South Africa is a natural gateway to Southern Africa, but not to the rest of the continent,” he said on Sunday night at the opening of the 69th AGM of the International Air Transport Association (Iata).
The Iata AGM takes place at the Cape Town International Convention Centre (CTICC) this week. It is only the third time the AGM is held in Africa.
“The success of SAA will depend on whether it can successfully compete on the North-South routes - between Southern Africa and Europe – where many other airlines are active,” said Franz.
“Furthermore, the legal framework and air traffic rights implemented for the Soccer World Cup 2010 in South Africa enabled players in the South African airline industry to increase capacity and for others to gain access to it. This greater capacity is perhaps the biggest challenge for SAA to overcome in its quest for sustainability.”
These days the key to survival in the airline industry, according to Franz, is to show what value you add for passengers.
“If an airline was, for instance, used to getting a lot of business despite doing very little in the past, it will not be able to be sustainable anymore in the current competitive circumstances in the industry,” said Franz.
“There is a huge opportunity to deliver value to customers.”
“South Africa is a natural gateway to Southern Africa, but not to the rest of the continent,” he said on Sunday night at the opening of the 69th AGM of the International Air Transport Association (Iata).
The Iata AGM takes place at the Cape Town International Convention Centre (CTICC) this week. It is only the third time the AGM is held in Africa.
“The success of SAA will depend on whether it can successfully compete on the North-South routes - between Southern Africa and Europe – where many other airlines are active,” said Franz.
“Furthermore, the legal framework and air traffic rights implemented for the Soccer World Cup 2010 in South Africa enabled players in the South African airline industry to increase capacity and for others to gain access to it. This greater capacity is perhaps the biggest challenge for SAA to overcome in its quest for sustainability.”
These days the key to survival in the airline industry, according to Franz, is to show what value you add for passengers.
“If an airline was, for instance, used to getting a lot of business despite doing very little in the past, it will not be able to be sustainable anymore in the current competitive circumstances in the industry,” said Franz.
“There is a huge opportunity to deliver value to customers.”
