Flight connections to Cape Town by Deon Cloete, ACSA
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Flight connections to Cape Town by Deon Cloete, ACSA

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Flight connections to Cape Town by Deon Cloete, ACSA Presentation Transcript

  • 1. INTERNATIONAL FLIGHT CONNECTIONS Deon Cloete 16 April 2010
  • 2. The Impact of the Economic Crises on Airlines - Global
  • 3. Passenger Traffic Collapses mid-2008 Source: IATA Premium Traffic Monitor Dec. 2009 Source: Rigas Douganis March 2010
  • 4. IATA Airlines Traffic Year 2009 v. Year 2008 Excludes LCCs and non-IATA airlines Source: Rigas Douganis March 2010 Markets Passenger Kms % Freight Kms % Africa - 6.8 - 11.2 Asia Pacific - 5.6 - 9.2 Europe - 5.0 - 16.1 Latin America + 0.3 - 4.0 Middle East + 11.2 + 3.9 North America - 5.6 - 10.6 TOTAL IATA Members - 3.5 - 10.1
  • 5. Fares falling faster than traffic for IATA airlines Source: IATA Source: Rigas Douganis March 2010
  • 6. Prospects for African Aviation are Optimistic Annual Growth Rates 2009-2028 (Pass-Kms) Source: Airbus : Global Market Forecast 2009-2028 Source: Rigas Douganis March 2010 Markets Sub-Saharan Africa to/from Annual % Growth Rate PR China 9.3 North Africa 9.0 Middle East 7.5 South Africa 7.4 Indian sub-Continent 7.1 Australia - NZ 5.9 Asia 5.0 USA 4.8 World Average 4.8 South America 4.3 Western Europe 4.2
  • 7. The Impact of the Economic Crises on Airlines – South Africa & Cape Town
  • 8. ACTUAL PASSENGER NUMBERS AND GROWTH 2000 - 2010
  • 9. INTERNATIONAL ARRIVING PASSENGERS BY MONTH
  • 10. POINT OF SALE - Top 16 Foreign Country Markets Source: ASM MIDT 2010
  • 11. PAX FARE MIX - PREMIUM & ECONOMY 2 WAY PAX (000) Source: ASM MIDT 2010
  • 12. PAX FARE MIX - PREMIUM & ECONOMY 2 WAY PAX (000) Source: ASM MIDT 2010
  • 13. International Flight Connections
  • 14. CTIA DIRECT FLIGHTS – INTERNATIONAL Withdrew
  • 15. CTIA INDIRECT FLIGHTS – INTERNATIONAL CTIA DIRECT FLIGHTS - REGIONAL
  • 16. CAPACITY UTILISATION – Bilateral Air Services Agreements Source: DOT 2006
  • 17.
    • High summer season from Oct to March – high frequencies and passenger numbers
    • Low winter season from April to Sept – low frequencies and passenger numbers
    • It takes up to 3 years to grow a viable route and seasonality makes it extremely difficult.
    • Some airlines only fly in summer eg.: Virgin/Air Berlin/Lufthansa
    • Airlines cannot optimise frequencies, 7 a week most preferred for economies of scale and lower cost per flight
    • Airlines can’t set up station office, station manager and own staff, has to appoint agents and may compromise their brand.
    Seasonal Destination Challenges
  • 18. INTERNATIONAL ARRIVING PASSENGERS BY MONTH
  • 19.
    • Cape Town is long haul destination and therefore airfares relatively expensive
    • Leisure Travellers fly once/twice a year and primarily in summer.
    • Business Travellers more than once per year and all year round.
    • Airlines makes 80% of their revenue from 20% of the seats up front: Business/First Class
    • Economy class seats (80%) yields on 20% of revenue
    • Cant utilise cargo to cross subsidise flight cost as high value low bulk cargo not existent in Cape Town.
    • Agricultural and fish exports are shipped as it is too bulky and also only in summer.
    • South Africa’s business hub is Gauteng, hence most international flights into OR Tambo.
    Leisure Destination Challenges
  • 20. Transport, on average, represents one third of the cost of a trip to South Africa Source : SA Tourism Survey 2004
  • 21. PAX FARE MIX - PREMIUM & ECONOMY 2 WAY PAX (000) Source: ASM MIDT 2010
  • 22. Distribution of Foreign Visitors
  • 23. What can be done?
  • 24.
    • Recognise seasonality as a major problem hampering tourism economic growth of the Western Cape
    • Promote and Position Cape Town and Western Cape as the “Creative Hub of Africa” to encourage business development opportunities and investment or as “Open for Green Business Developments”.
    • Promote and Position Cape Town and Western Cape as the an “All Year Round and a Responsible Destination”
    • Reduce investment in “summer” industries (agriculture/fishing) and Events like J&B Met, Argus Cycle Tour etc.
    • Increase investment and promote “Winter” Events and all year round industries.
    • Promote and invest in Business Tourism, i.e. conventions and conferences to develop an all year round destination.
    • Identify and encourage investment to manufacture of goods of high value /low bulk to increase airfreight
    • Devise and Airline incentive scheme to encourage international flight connections.
    SOME SUGGESTIONS….
  • 25.
    • Recognise seasonality as a major problem hampering the tourism and economic growth of the Western Cape
    • Promote and Position Cape Town and Western Cape as the an “All Year Round and a Responsible Destination”
    • Reduce investment in “summer” Industries and Events like J&B Met, Argus Cycle Tour etc.
    • Increase investment and promote “Winter” Events and all year round industries.
    • Promote and invest in Business Tourism, i.e. conventions and conferences to develop an all year round destination.
    • Identify and invest in the manufacturing of goods of high value /low bulk to increase airfreight.
    • Devise and Airline incentive scheme to encourage international flight connections.
    Organised Business, ACSA and Tourism Agencies