11 The Portfolio Committee on Transport Airlift Strategy to the Broader 2010 Context 05 th September 2007.

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Presentation transcript:

11 The Portfolio Committee on Transport Airlift Strategy to the Broader 2010 Context 05 th September 2007

12 Airlift Strategy Airlift Strategy was approved by Cabinet in July 2006 A holistic view of the international air transport network in support of South Africa ’ s national interests is a key element of the Airlift Strategy.

13 Airlift Strategy The Airlift Strategy, is aimed at supporting national economic growth through greater alignment with the tourism and trade markets and unblocking obstacles to growth. In particular the strategy allows for greater market access to support growth and competition in the air service industry, through the creation of an enabling regulatory framework, which inter alia, allows for capacity to be negotiated ahead of demand.

14 Tourism Business Pax Freight BASA Airlines / Stakeholders Government Entry Points Traffic Rights Frequencies Airlift Strategy

15 Strategic Planning Committee

16 Airlift Strategy - SPC Bilateral Air Service Agreements are an instrument of transport and forms an integral part towards transport connectivity for the country. In terms of the Airlift Strategy, the views of the Department of Transport and that of other government departments are taken into consideration. These views are factored in with the views of the industry stakeholders and are formulated in a balanced approach towards a mandate for bilateral air service negotiations.

17 Overview Airlift Strategy requires a tool in the format of an Implementation Plan – guide and give effect to significantly enhance BASA between RSA and other countries. Analysis of existing BASA and Gap Analysis. Route Utilization. RSA government role in the aviation industry is one of principle enabler and regulator.

18 Objectives Increasing contribution to accelerated economic growth. Increase the mobility of the domestic market. Improve Safety and Security. Aviation Community well-being; and Environmental responsibility.

19 Objectives Intent - Airlift Implementation Liberalizing International air service agreements. Allocating capacity under existing bilateral air service agreements – relation to airline business plans. Liberalising international aviation multilaterally.

110 Objectives Strategic Approach - Airlift Implementation Stability and Sustainability of the network of air services serving South Africa. Setting of negotiating mandates – impact assessment on RSA and its key markets. AU – External Air Transport Policy (EU Ownership Clause) 5 th Freedom Rights and rapid liberalisation - (6 th Freedom traffic Rights).

111 Tactical Approach Tactical Approach - Airlift Implementation Anti-competitive behaviour / market dominance. Reciprocity / market share. Airline Alliances / code share. Seasonality / Special Events

112 Mandate Constitution of the Republic of South Africa, 1996 must be upheld. International Air Services Act No 60 of Air Services Licensing Act 115 of RSA government role in the aviation industry is one of principle enabler and regulator.

113 Mandate International Air Services Act No 60 of (a)to promote trade with, and tourism to and from the Republic; (b)to promote competition between persons who operate international air services; (c)not to unjustifiably prefer any licensee over another; (d)to promote a high standard of safety in the operation of international air services; (e)to promote the development and interest of the local international air services industry; (f)to promote the interest and needs of users or potential users of air services to the Republic.

114 DEAT Airlift Requirements

115 ██ AFC ██ CAF ██ CONMEBOL ██ OFC ██ UEFA AFC CAF CONMEBOL UEFA FIFA Market

116 Capacity Utilization

117 Traffic Rights

118 Other Key Airlines

119 UAE Carrier – Catchment Points

120 OFFICIAL FIFA PARTNERS

121 United Arab Emirates The utilization of additional frequencies for 2009 & 2010 is subject to an evaluation - review of the utilization of the additional frequencies allocated for 2007 & Within six (6) months, a commercial agreement - concluded & packaged for the FIFA 2010 World Cup event which will also be considered in the review process.

122 Entry Points – South Africa

123 Entry Points – South Africa

124 Use it or Loose it Principle IASC addressing unused capacity Airport slots – Unused airline slots allocated by ATNS are taken away and as such are available for take up by another carrier.

125 Addressing Unused Allocated Capacity International Air Services Act No 60 of 1993 Section 21 Hearings In terms of the above section the International Air Services Council is addressing unused frequencies. Licensees are afforded at least 90 days to commence servicing the routes. Failure to do so – license is withdrawn and readvertised for allocation.

126 Instruments Licensing Act provides for the Authorization of Supplementary Flights. Air Services Framework – makes provision for the allocation of Supplementary Flights. Authorisation of Charter Flights. Increase frequencies – ASA.

127 Aviation Sub Sector Task Team Strategic objective for FIFA WC 2010 is to provide a safe and secure aviation operational environment, while maximising efficiency in delivering on the transport guarantee. Mobilise the aviation industry to meet the challenges and demands in providing sufficient capacity pre - during – and post the event. Optimally utilise all the resources available with limited additional financial cost - no guarantee of future sustainability.

128 Aviation Sub Sector Task Team A breakdown of the operational concept plan: focus on airports that can provide primary; secondary and support functions (e.g. ORTIA; Lanseria; Grand Central) slot co-ordination for all airports within the network. Seat capacity and airspace management.

129 Aviation Sub Sector Task Team Primary points of entry for International will be via the “ Golden Triangle ”, - i.e. (ORTIA; CTIA and DIA / La Mercy). Based on ACSA ’ s existing and planned infra-structural developments, designed to exceed the expected volumes during WC ‘ Smaller ’ ports of entry, i.e. (Lanseria; Polokwane; KMIA), are best suited for the inter-continental and regional operations that are expecting high traffic volumes.

130 Aviation Sub Sector Task Team Scheduled aircraft network planning and utilisation will be determined by the secondary airports handling capabilities and operational expertise. The three primary airports - exposed to ‘big events’ in the past and therefore more geared to the expectations. Gauteng has three (3) host venues during the event which requires aircraft movement from domestic as well as regional and international.

131 Aviation Sub Sector Task Team The Gauteng secondary and support airports will provide relief for ORTIA on General Aviation traffic and private / business jet movements. Airspace management and slot co- ordination will mean operational hours to be extended to accommodate the expected increase of unscheduled flights. Commercial airline operators, both domestic and international, are geared to increase fleets (seat capacity), temporary through various options.

132 Aviation Sub Sector Task Team Processing of all applications will be prioritised by the councils. Consultant studies indicate that the current seat capacity on scheduled domestic operations with a displacement of 70% of the existing domestic market. Additional requirements at the secondary airports must include all local service providers and relevant government agencies.

133 Conclusion To fulfill delivery of the airlift strategy and ensure that our policy relating to international aviation trends are responded to accordingly thus ensuring that South Africa has adequate airlift capacity to contribute effectively to economic development and a successful 2010 World Cup.

134 We sincerely appreciate you most valued time afforded to us for this presentation. THANK YOU