Africa offers best growth opportunities for airlines - Motlanthe

Monday, June 3, 2013

Cape Town – In a world where production in developed economies was close to saturation levels, Africa offered the most viable potential for growth for the aviation industry, according to Deputy President Kgalema Motlanthe.

The presence of seven of the world’s top 10 fastest growing economies in Africa also bolstered the continent’s position for growth, Motlanthe said while opening the 69th annual general meeting of the International Air Transport Association (IATA) and Air Transport Summit in Cape Town on Monday.

This is the first time that the AGM is taking place in South Africa.

Motlanthe, however, said cooperation between government and the aviation industry had to be improved.

“This growth potential cannot be realised if African governments do not improve collaboration with the aviation industry,” Motlanthe said.

In Africa, which has the world’s worst safety record, states should play their part in improving aviation safety by providing the necessary public infrastructure, as well as support programmes associated with cushioning the high initial capital investment required for assisting industry growth.

“Africa offers the most viable growth potential for the aviation industry in a world where developed economies are producing at close to saturation growth levels, with marginal growth coming from services and consumption sectors,” Motlanthe said.

Planning for future growth

The South African government, in adopting its National Infrastructure Plan a year ago, had signed up to this by resolving to build new rail systems, ports, fuel pipelines and the generation of energy.

Through interventions such as its young pilot cadet programme, South Africa was also hoping to draw more young people into the aviation industry.

“We hope that these efforts will help to contribute to growth and investment in the aviation industry,” Motlanthe said.

State-owned enterprises such as Denel were also recipients of investments geared for research, development, maintenance, repairs and the overhauling of aircraft.

As a long-haul destination, South Africa was well aware of the important role the aviation industry played in achieving national development objectives. Aviation brought tourists, trade flows, foreign direct investment, and foreign exchange earnings.

Last year, a total of 9.2 million international tourists visited South Africa, with a large number of them travelling by air.

South Africa believed that inter-regional mobility had increased over the past few years, with more and more flights connecting directly to Africa.

“Indeed, interconnectivity is a key concern for us and we are looking at the options available for unlocking the growth potential from new markets development. This will also drive down general prices on the back of increased competition and create new employment opportunities,” Motlanthe said.

However, all of this depended on ready, able and willing African governments presenting well thought out plans and strategies for development. Key areas were air traffic management, safety regulation and operational efficiencies.

The South African government was conscious of the difficult times faced by the aviation industry and “our Air Traffic Navigation Service will continue to implement measures that will reduce the costs of doing business in South Africa,” Motlanthe said.

As a long-term strategy, therefore, government fully supported the Upper Airspace Control Centre, which would result in seamless operations for the airlines in the Southern African Development Community region. – SAnews.gov.za