Tourism Update reports from Aviation Outlook Africa
The challenges facing airlines in Africa and globally was one of the major points highlighted at the Aviation Outlook Africa Conference, held at the Sandton Convention Centre on June 25.
Addressing delegates at the conference, Carla da Silva, Regional Manager Southern Africa for Air Mauritius, said airlines were under pressure to raise profits and sustainability.
The major issues hindering airlines, said Da Silva, were the expensive equipment, the volatile oil price, their exposure to volatile currency and world events, the “unintended consequences” of government policies and rising distribution costs.
However, she said Air Mauritius had been successful in addressing some of these issues through the introduction of initiatives that added value to passengers’ experience and which, in turn, generated ancillary revenue for the airline, such as its Travel Smart programme and advance seat selection. She added that, through ancillary products, airlines could shift the focus from price to the service they offered.
She said there was a need for airlines to create successful partnerships with the travel trade, MICE and corporate travel sectors.
Inati Ntsinga, SA Express CEO, said the path to airline profitability was not just about profitability but rather sustainability. Ntsinga said airlines could remain sustainable through route optimisation through codeshare agreements, by working together with airlines’ assets such as their aircraft, staff and suppliers, managing cost through cost containment measures and stimulating the passenger market to create more demand for financial success.