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african - Airlines Africa

August 15, 2011

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Air Namibia Visits AFRAA

Airlines Africa

Airlines Africa

Serving the Airline Industry and Airline Professional Across Africa

Edelweiss Adds Cape Town to

African Route Network

Edelweiss Air, founded in 1995, is

a leading leisure airline of Switzerland,

became a member of the Lufthansa

Group in 2008 and is an affiliate of

Swiss International Air Lines. The airline

will launch two weekly roundtrips

flights between Zurich and Cape Town,

South Africa. effective October 25,

2011. Flights will be operated using an

Airbus A330-200 with 30 business and

255 economy seats.

The airline operates a fleet of five

short-, medium and long-haul aircraft

to about 30 destinations all around the

world.

“We clearly focus on superior

quality and high customer satisfaction,”

said Michael Trestl, Edelweiss

business development manager. “Our

philosophy is to always provideide our

guests with the little extra’ they don’t

expect and thus exceed their expectations.”

“Beside co-operations with Swiss

tour operators, Edelweiss Air is

closely working together with Swiss

International Air Lines,” said Trestl.

“This partnership enables us to offer

Continued on Page 3

Join the

Air Mauritius

Financials

Continued on Page 6

AFRICAN AIRLINES ASSOCIATION

Association des Compagnies Aériennes Africaines

SITA: NBOXA8X P. O. Box 20116 Nairobi 00200 Kenya

Tel: 254 20 2320144/2320148 Email: afraa@afraa.org

Fax: 254 20 601173 Web: www.afraa.org

AFRAA MEDIA BRIEF 16 TH Don’t let another minute pass without

being a part of the airline community of

African

Africa. Whether an airline or an industrial

supplier, the African Airlines Association

Airlines

is waiting to partner with you.

www.afraa.org

Association

February 2011

1

At a time when the world was

confident it had embarked on a path

of sustainable economic recovery,

the recent events and market signals,

have cast serious doubt on this optimistic

view. The fragile global recovery

has been tested by a number of

crises since the start of 2011:

• Political upheavals in a number of

Middle East and North African countries

impacting oil prices.

• The debt crisis in Europe and its

impact on the Euro as well as on

the purchasing power of

Europeans.

• The American debt crisis and its

effects on the global economy.

The political, economic and social

tensions, rampant uncertainty and

fear of a second cycle of recessions

have significantly affected customer

confidence and led to a slowdown in

consumer spending. Tourism and air

transport have been particularly hit.

Although Destination Mauritius

has shown some resilience, tourism

professionals tend to agree that the

August 15, 2011


Air France continues to develop its

offerings in Africa, starting on September

29, 2011, it will begin operating

flights to Bata (Equatorial Guinea)

out of Paris-Charles de Gaulle. A port

city located near the Gulf of Guinea,

Bata will be served with two weekly

frequencies on Thursdays and Fridays,

as a continuation of the Malabo

service. The airline is still working to

secure handling contracts in Bata.

“Bata is a petroleum destination

and is part of our development strategy

on the African continent. This year,

we opened Freetown and Monrovia,”

said Constance Meyenberg with Air

France’s corporate communications.

“We will pursue with the opening of

Bata on September 29—subject to approval

by the government—and Cape

Town in the winter 2011 schedule.”

season.

Flights will be operated by Airbus

A319 Dedicate aircraft with a seating

capacity of 79 seats: 28 in business

and 51 in Voyageur cabin classes.

JamboJet

Kenya Airways confirmed for

Airlines Africa a newspaper report

that Kenya Airways has registered

the name JamboJet and is considering

the launch of a low cost carrier.

The airline has declined to give

any additional details of the plans

but has been facing competition

from a number of relatively new carriers

and feels that a new operating

unit with lower costs is an option.

www.airlines-africa.com

Airlines Africa

Air France Develops More

African Service, Adds Bata,

Cape Town Coming

These flights will offer the Dedicate

service, a product designed to make

travel easier for oil industry and construction

professionals and business

people and tailored to the specific

expectations of certain African markets.

Since Bata will produce more

business-related travel than leisure,

the Dedicate service is well-suited to

this market.

Air France currently employs

five modified A319-100ER aircraft for

the Dedciate service. This exclusive

Air France service meets the equipment

industry managers and technicians

needs, especially regarding fast

non stop service to production sites.

Markets include Malabo, Bata and

N’Djamena. These A319s have two

additional central tanks located in the

hold to get an extended fuel autonomy

versus a standard A319.

“In addition to regular ground

service, Dedicate customers enjoy

access to all e-services offered by

Air France and smooth check-in and

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2

boarding,” said Meyenberg.

Features in the business cabin (28

seats) include a seat recline of 127

degrees, a power outlet, international

and national publications, amenity kit,

and oshiboris. Passengers also have

access to portable videos with 12 just

released films, 16 music channels and

10 games.

Voyageur cabin (54 to 57 seats)

includes two PC outlet every three

seats, a foot-rest amenity kit and oshiboris.

This cabin has one video screen

every three rows with broadcast news,

a movie and then Geovision (on time

satellite location of the plane, as well

as flight info).

Cargo is not expected to be an

important factor on the segment.

Which again, fits the business model

for using the narrowbody A319. “Due

to the limited performance and space

offered by the belly holds of this type

of aircraft, it will therefore be essentially

a passenger product, not a cargo

one,” said Meyenberg.

August 15, 2011


Edelweiss Comes

to Cape Town

Continued from Page 1

flight connections to and from all

major cities throughout Europe via

the Swiss hub in Zurich.”

Edelweiss flights are operated

under codeshare flight numbers WK

(Edelweiss Air) and LX (Swiss).

Edelweiss already operates Michael Trestl

service to Kilimanjaro and Mombasa

on a year-round basis and to Mauritius on a seasonal

basis.

Swiss operates flights from Zurich to Johannesburg,

which are fully combinable with Edelweiss Air’s

Cape Town flights. For Cape Town, Edelweiss will not

be hiring its own employees but will be contracting with

a ground handling service.

“Edelweiss Air does not carry out direct marketing

activities abroad, moreover, we are closely working

together with the local Swiss sales and marketing organization,”

said Trestl. However, Trestl did disclose that

the airline is planning to organize familiarization and

press trips with Swiss tour operators to Cape Town.

www.airlines-africa.com

Airlines Africa

SAA Launches Service to

Ndola, Zambia

South African Airways (SAA) is set to commence operations

to Ndola (Zambia) on October 1, 2011. Recently awarded

for the best “Service Excellence in Africa”, the airline will fly to

Ndola three times a week, strengthening its African network.

The introduction of this new route will provide an air connection

between South Africa and Zambia. Ndola is the thirdlargest

city in Zambia.

Theunis Potgieter, SAA’s general manager commercial

added, “The introduction of this route is aligned to the airline’s

growth strategy, which aims to introduce new services to feasible

destinations, enhancing business travel which effectively

nurtures economic growth on the African continent.”

This route will be serviced by the A319 aircraft which accommodates

120 passengers in a two class configuration,

which includes business and economy class. SAA flights to

Ndola will operate on Tuesdays, Thursdays and Sundays. The

airline is working closely with its partner, SA Airlink, complementing

their early morning departures from Johannesburg to

give customers increased travel options.

The introduction of this route follows SAA’s recent announcement

of three new routes to Bujumbura (Burundi), Kigali

(Rwanda) and Cotonou (Benin), on October 31 this year.

3

August 15, 2011


www.airlines-africa.com

Airlines Africa

Superjet 100 Hot Soak Trails

On August 4, 2011 the Sukhoi Superjet 100 flight prototype SN95005

landed at Ras al-Khaimah (UAE) to undergo hot soak trails (above +40°C).

The tests will last about one month. The aircraft is equipped with special detecting

devices to register the aircraft temperature in different zones. The test

program includes extensive ground testing of the engines, APU and avionics

and check flights.

Ground hot soak trials are aimed at proving the ability of the aircraft, its

systems and avionics to resist temperature shock. These tests shall confirm

reliable starting and operation of the APU and engines at high outside air

temperature even after long parking. As part of the test, Sukhoi will run the

airframe through special checks to demonstrate the reaction of the composite

materials.

Check flights are aimed at confirming declared takeoff and landing aircraft

performances as well as stable engine operation in steady and variable

modes of operation. The test program also includes the performance of the

continued takeoff, single-engine go-around and relight in flight.

Improving Flight Data Management

Lufthansa Systems has announced

an expansion in the functionality

of its Integrated Commercial Platform

(ICP). The ICP/Perform module

features new applications for optimizing

cost-efficiency of flight routes. ICP/

Perform calculates route profitability

and assists with budget planning while

also automatically settling invoices

for air traffic control costs, airport fees

and similar expenses.

“The ICP already enables airlines

to make decisions by providing a complete

overview of their central flight

operations planning data. We have

taken this approach even further with

ICP/Perform. The new module allows

analyzing the profitability of individual

routes and contributes to cost-efficient

flight operations,” said Stefan Auerbach,

senior vice president airline

solutions at Lufthansa Systems.

The ICP covers all of an airline’s

network and revenue management

processes. It provides a compre-

hensive overview of the information

relevant to commercial planning and

gives airlines a solid foundation of

data for managing their business. The

ICP thus enables carriers to be more

agile and flexible.

ICP/Perform handles route profitability

functions within the ICP. Its fast,

precise reporting tool covers everything

down to the level of individual

flights, providing a basis for airlines to

make better network planning decisions.

The system combines flight

operations information with cost data

and sends the results directly to the

respective finance systems. It also has

interfaces to the revenue accounting

and flight operations systems so that

revenue and cost data can come from

a central data source. ICP/Perform

additionally prevents overpayments by

settling accounts precisely.

The new ICP/Perfom is being

offered in cooperation with Megabyte

Ltd., a renowned Maltese IT company.

Air Tweets

Turkish Airlines has announced that,

subject to government approvals,

they could begin scheduled cargo

service to Lagos from Istanbul as

early as September.

4

Arik Air issued a statement to correct

and clarify the details surrounding

one of its aircraft held on the

ground in Dakar, Sengal. Published

reports stated that the aircraft had

been impounded over outstanding

payments. The airline reports that

the dispute was over navigational

charges, that Arik and other carriers

have been working as an ongoing

concern. The airline also took expection

to reports on the financial insolvency

of the airline which it claims

are “unfounded.”

The Nambia Airports Company is

sponsoring research on the danger

of wildlife near airports. Different that

some studies, this report will seek

proactive measures to mimimize the

risk as opposed to seeking remedies

once birds and wildlife are already a

risk to aircraft.

TAAG wants to resume flights to

the northern Zaire airports of Soyo

and Mbanza as soon as the Zairian

National Institute of Civil Aviation

certified the airports for commercial

operations.

Swissport Tanzania posted a Sh3.9

billion profit before taxes for the first

six months of 2011. This is a 44 percent

increase over the same period

over last year.

Joel Chilufya, president of Fly

Zambia Airline Limited has reported

that, with an investment of some $21

million, the airline is set to launch

service within 30-45 days. At start,

the carrier plans to have two Fokker

100 and two Fokker 50 aircraft

(one aircraft will reportedly be in an

all-cargo configuration. The management

team is reported to be experienced

and from both Zambia and

South Africa.

August 15, 2011


Airlines Africa

5

Etihad Airways Set to Launch Service to East Africa

Developing Fastest Connections

to China and the East

Etihad Airways recently announced

the start of flights to Nairobi,

its first destination in East Africa on

April 1, 2012. The daily service from

Abu Dhabi to Nairobi will be operated

by a two-class A320 aircraft with 16

Pearl business class and 120 Coral

economy seats.

Nairobi becomes the 72nd destination

in Etihad’s global network and

the return flights will create a new

link between the two capital cities of

Kenya and the United Arab Emirates.

“This new route will allow Etihad

to tap into large traffic flows between

East Africa, North Asia, and the Indian

subcontinent,” the airline‘s chief executive

officer, James Hogan, said. “Our

strategy is to target areas of strong

growth in emerging economies such

as north, east and central Africa and

we have a number of other destinations

under active consideration.

“East Africa has been on our radar

for some time now,” Hogan told Airlines

Africa. “We have done a detailed

evaluation of a number of potential

markets over the last 12 months, and

recently decided that Nairobi was the

most appealing destination for our network

in the short term. The reason for

deciding to launch flights in April 2012

is that we have seen strong recent

growth in the Kenyan economy, and

in trade between Kenya and the UAE,

and believe that there is now sufficient

demand for a direct link between the

two countries’ capital cities. We are

also expanding our Chinese network in

the first half of next year. The delivery

of an additional narrowbody aircraft at

this time allows us to complement this

growth in China with an important new

connection to East Africa.”

“Nairobi is an ideal addition to

Etihad’s global footprint. There are

38,000 Kenyan nationals residing

in the UAE and there are large and

established point-to-point traffic flows

between the two countries.

“Also, Abu Dhabi and Kenya have

www.airlines-africa.com

much in common economically. Both

have 2030 plans in which tourism

plays a vital role and the UAE is one of

the largest exporters to the country.”

In 2010 more than two million

tourists visited Kenya, including some

295,000 from the Middle East.

This new route will also service

the considerable and growing flow of

people and capital between Kenya

and North Asia, with major Chinese

investment in Africa generating passenger

demand in both directions.

“Our Nairobi service will originate

and terminate in our Abu Dhabi hub,

and will have its own flight numbers,”

Hogan said. “However, we have specifically

designed the schedule to provide

fast and seamless connections

over our Abu Dhabi hub to a number

of key markets including China, India

and Australia, as well as to and from

Europe. As an example of this, in

the summer 2012 season, Etihad will

offer the fastest online connection in

the market between Nairobi and cities

such as Beijing, Cochin, Hyderabad

and Sydney.”

“While we don’t have any full time

Etihad staff in Nairobi we do have

staff in Africa with regional responsibility

for Kenya,” Hogan explained to

James Hogan

Airlines Africa. “However, within a few

months we will be appointing a country

manager who will lead a team of 11

commercial staff. We will also have

several staff based at Jomo Kenyatta

International Airport.”

The managing director of the Kenya

Airports Authority, Eng. Stephen

Gichuki said, “Kenya Airports Authority

has enjoyed a good relationship with

Etihad Airways throughout its three

years of operations to Jomo Kenyatta

International Airport. Our airport is

currently undergoing an expansion

and upgrading of its facilities which

includes the construction of a new

terminal. This will have the capacity

to handle 20 million passengers, and

construction is expected to begin in

January 2012.”

Etihad began dedicated cargo

services to Nairobi in March, 2009

and now operates five freighter flights

with a total capacity of 340 tonnes

each week. This will increase by five

per cent from April 1. “We operate

two A330 freighters via N’Djamena

into Abu Dhabi, two MD-11 freighters

into Amsterdam via Johannesburg

and Lagos respectively and one A330

freighter roundtrip to Abu Dhabi,” said

Hogan commenting on the freight

service and the planned growth.

“Our freight capacity increases

are from a combination of freighter

aircraft—for example the full impact of

our new 100 tonne 777 freighter—as

well as the increase from the bellyhold

space of our new passenger aircraft

being deployed on new routes and

frequency on existing routes.”

August 15, 2011


Aviation Start-ups

By Vytautas Vorobjovas

The number of air passengers is expected to grow

by 5.1 percent over the next 20 years. This naturally

means that there will be a large number of new airlines

being established in the process. These new players,

introducing brand new business models and a fresh

outlook, will promote a healthy competition among the

largest and the newly established airlines, especially

within the emerging markets. As a result, customers

may expect a more innovative approach and much

higher service quality standards.

Airlines are often subjected to rapid market fluctuations

that increase or decrease profits. However, new

companies, unabashed by the existing challenges,

introduce new products and services and thus contribute

towards the product quality and stimulate innovative

ideas through encouraging competition. The maximum

surplus value, naturally, falls to the end consumer.

Last year’s growth in African airlines’ profits ($100

million, according to ICAO) was mainly determined by

the newly established airlines. In the meantime, in China,

which is one of the most rapidly developing markets,

such newcomers acted as a powerful accelerator for encouraging

innovations and progress within the industry.

It is worth mentioning that South America has not undergone

such a vivid growth in emerging airlines lately,

however, the experts can still observe an increase in

the number of innovations and improvement in general

service quality. A similar situation can be spotted in Russia

where a gradually increasing number of new players

impels faster business processes among the more

experienced ones. A slightly different game is taking

place in the United States where the newly established

companies are often strongly regulated by licenses and

various permissions. As a result, they are faced with the

need to pay more attention to well-though-out business

strategies and attracting the right investors.

Not only does the introduction of new products

accelerate business processes but also improves the

total domestic economy. Such companies as Virgin

Blue, WestJet, Ryanair, Emirates and several others

were once start-ups. That is why we think it is absolutely

necessary to support the newly established companies

that may one day join the list of the most influential air

carriers across the world.

All markets, including the aviation sector, require

constant regeneration. Otherwise they will fall into the

trap of stagnation and gradual deterioration. In order

to move forward there must be a strong emphasis on

healthy competition and that is where new companies

play an enormous role. With that in mind, Locatory.com

is introducing a 50 percent discount for the industry

newcomers to make it easier to deal with acquiring new

parts and components and solving AOG situations.

Vytautas Vorobjovas is the chief commercial officer

of Locatory.com

www.airlines-africa.com

Airlines Africa

Air Mauritius Financials

Continued from Page 1

2011 low season is the worse that the sector has ever experienced.

Air Mauritius, which depends to a large extent on tourism, is

also impacted. Furthermore, as all airlines, it has to make do with

rocketing fuel prices leading to increased costs of operations.

First quarter results reflecting these adverse conditions The first

quarter of the financial year (April 1 to June 30) is usually the

most challenging one for the airline as it falls in the low season.

In spite of the depressed global environment, Air Mauritius’ losses

of $16.2 million for the quarter is a slight improvement on the $16.5

posted the previous year. On the downside, these results challenge

the sustainable recovery process of the company since last year’s

turnaround.

With the number of passengers carried reaching 272 359, the

company hit a new record high for a financial year’s first quarter.

Load factor losing 1.4 points to reach 74.1 percent remains satisfactory

in the light of the record capacity deployed for the period.

Air Mauritius offered 394,364 seats representing a growth of 5.6

percent over the corresponding period last year. Turnover also hit

a record high of $131.9 million. Yield increased by 7.7 percent partially

offsetting the drastic increase of 42 percent in fuel price. The

increase of EUR 10.1 million in fuel costs was also partially compensated

by a favorable EUR/USD exchange rate for the quarter.

Freight uplifted stood at 8,000 tonnes. However, the lower yield

recorded indicates difficult times ahead as freight volume is a direct

function of the global economic health.

Outlook

When the world entered a recession two years ago, some analysts

feared that it could end up in a double-dip cycle—some recent

events seem to be pointing to that direction. The recent events

might, in fact, suggest that we could be heading towards a second

dip. The debt crisis and the revision of US credit rating have blown

winds of panic over stock markets around the world. This situation

is likely to affect consumer confidence and their purchasing power.

Air Mauritius and the Mauritius tourist industry, are entering a

new period of turbulence where additional challenges must now be

dealt with. A whole debate is underway to find solutions.

All tourism trade partners however seem to agree on three

points:

1. The challenges faced by the tourist industry are unprecedented

2. Aviation is an important component in the quest of sustainable

solutions

3. A strong national airline is essential

Air Mauritius has already sent a strong signal to all stakeholders

by embarking on a review of its business model.

The company must now manage the forthcoming months.

Economic crises’ impact on demand for air travel, skyrocketing fuel

prices, volatile exchange rates, excess capacity deployed by airlines

contemplating a sustainable industry recovery all highlight the

need to be cautious for the rest of the financial year – and laying

the foundation for a ‘different future’.

6

August 15, 2011

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