Tourism Update reports from Aviation Outlook Africa 2013
In the keynote speech delivered at the opening of the Aviation Outlook Africa Conference yesterday (June 25) at the Sandton Convention Centre, João Miguel Santos, VP, Boeing International, Africa, said the growing middle-class market segment was the cornerstone of aviation growth in South Africa.
Santos says there is a growing need by the middle-class sector to travel, for both leisure and business reasons, and says this market is seeing the benefits of using air travel, which offers them convenience, choice of destinations and price.
He adds that, for this reason, the African aviation sector is growing faster than the rest of the world, with more and more people flying within and to Africa. According to Santos, five years ago the average growth rate of the aviation market in Africa was at 20%. It has since moved to around 35%.
Contributing factors to the growth in the aviation market are growing export and trade opportunities, Africa’s natural resources and political stability within African countries, which, in turn lead to more foreign investment opportunities.
He adds, however, that the key market forces that affect the airline industry are fuel prices, economic growth and development, environmental regulations, infrastructure, market liberalisation, aircraft capabilities, other modes of transport, business models, and emerging markets.
A sore point for the African aviation market, says Santos is the average age of their fleet, which affects fuel efficiency and maintenance costs. He says for the African aviation market to really be successful, the fleet age should be reduced.
Middle class drives SA aviation growth
Middle class drives SA aviation growth
26 Jun 2013 - by Jeanette Phillips
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