Air Transport and Aviation Ground-Handling Services in South Africa 2024

Despite a recovery from the brink of collapse since the pandemic, the air transport and ground handling services industry challenges persist due to high ticket prices and soaring fuel costs. Carriers such as FlySafair, Airlink and CemAir have strengthened their positions, while new players such as LIFT Airline entered the market. South African Airways restarted intercontinental flights for the first time in three years in October 2023, while government’s sale of 51% of SAA collapsed.

Air passenger transport is moving toward a level playing field after generations of state-owned airlines’ privileged position. Airport infrastructure and air navigation system deficits remain a hurdle.

Opportunities

• Identify new routes and optimise existing ones to enhance connectivity.
• Advancements in cargo handling technology.
• Airport infrastructure development.
• Development of apps.
• Expanding cargo operations and investing in infrastructure to handle increased demand for ecommerce and logistics.
• Expanding or launching low-cost carrier operations.
• Expansion into African countries.
• Forming strategic partnerships and collaborations domestically and internationally.
• Invest in advanced technologies for ground handling operations.
• Investment in sustainable aviation initiatives.
• Safety training programmes.
• Single African Air Transport Market initiative.
• Strengthen data security and cybersecurity measures.
• Training and skills development initiatives.

Challenges

• Adherence to global standards Airport infrastructure congestion, constraints and limited capacity.
• Compliance with safety, security and operational standards requires.
• High operational costs.
• High prices, soaring fuel costs and reduced capacity impact recovery.
• Intense competition in the air transport sector.
• Limited financial resources for infrastructure development and improvements.
• Many airlines, including SAA, facing financial challenges.
• Poor economy suppressing consumer demand.
• Shortages of skilled aviation professionals.
• Stringent visa requirements and a limited number of air services agreements hinder South Africa’s international travel attractiveness.
• Sustainability and environmental issues.
• The collapse of airlines has disrupted the industry.
• The industry is vulnerable to global economic factors.
• Uncertainty in passenger growth forecasts and currency market fluctuations.

Trends

Adoption of advanced technologies for cargo handling. Advancements in ground support equipment, including electric and eco-friendly vehicles. Aircraft fleet modernisation to more fuel-efficient and environmentally friendly aircraft. Digital transformation and technology integration. Heightened focus on data security and cybersecurity measures. Low-cost carrier and private business jet and charter growth and emergence of new airlines. The return of a smaller SAA is expected to facilitate domestic, regional and international routes. The Single African Air Transport Market (SAATM) initiative.

Outlook

The aviation industry is set to return to pre-pandemic levels in 2024, although the growth of commercial and general aviation in South Africa has slowed down significantly. The shortage of new aircraft has been exacerbated by manufacturers delaying delivery. Increased fuel prices have led to carriers preferring routes with high returning yields. Incremental capacity additions by domestic carriers are expected to stimulate growth. The sustainable turnaround of SAA remains unclear. It is expected that the air cargo market will stabilise.

The congestion at ports has caused air cargo volumes to increase. The pending release of the National Aviation Policy is anticipated to support growth and accessibility of air transport. Airlines are likely to increase their investment and usage of sustainable aviation fuels, with South Africa well-placed to become a leading global producer.

Report Coverage

This report on the air transport industry and aviation ground-handling services in South Africa covers airlines, airports, and various support services such as air traffic control and ground handling, which play a crucial role in connecting South Africa domestically and internationally. The report includes comprehensive information on the number of airports and registered aircraft, flight volumes, passenger traffic, cargo carried and arrivals and departures. It covers notable players, corporate actions and developments, and influencing factors such as jet fuel availability, aviation safety and environmental issues.

There are profiles of 41 companies including state-owned companies such as South African Airways and Airports Company South Africa, international players such as Cathay Pacific, Ethiopian Airlines and Emirates, and local players such as Cemair, Safair and Bidair Cargo.