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Capacity cuts by airlines could become a reality this year.
The economy will more than likely be the biggest game changer in 2017 for the airline industry, says Hein Kaiser, Spokesperson for Mango. He says anticipated growth remains flat and economic conditions will likely remain tight.
Kaiser says the local aviation market will likely see an increasing fight for market share. “It is likely that some low-cost competitors continue to price unsustainably,” he says, and that capacity reductions in the market are also likely. “Over-capacity will impact all airlines again and economic conditions will dampen growth prospects. We expect very little growth and more than likely an industry-wide period of consolidation.”
Locally and internationally the operating environment will remain difficult, says Erik Venter, Comair CEO. He says measures such as the introduction of biometric data gathering at OR Tambo are also making the South African environment challenging.
However, Dean Bibb, Sabre VP Middle East and Africa, believes there is a significant opportunity for African carriers to grow brand affinity and improve areas like check-in ahead of the African passport introduction in 2018. “In a recent survey conducted by Sabre, check-in dissatisfaction was the number-one gripe of African travellers. However, it’s totally in an airline’s control. If airlines can fix this using technology, they’ll grow their customer base.”
Sourse: tourismupdate.co.za
