Southern Africa’s transport operators are facing several challenges, but among the chief concerns is the rising cost of jet fuel.
Jet fuel is now 116% more expensive than it was this time last year, which is further exacerbated by exorbitant fuel charges, says Aaron Munetsi, CEO of the Airline Association of Southern Africa (AASA).
Jet fuel is no longer produced in South Africa and it has to rely on imported stocks.
AASA held its 51st Annual General Assembly virtually on Thursday. There are currently 17 airline members and 35 so-called associate members, including infrastructure service providers, several oil companies, major aircraft manufacturers, engine manufacturers, ground handling companies, service providers, other industry associations and partners.
During a panel discussion at the AGA, South African Airways CEO Thomas Kgokolo said a regional airline group could be one solution to the rising costs associated with fuel.
In September this year SAA and Kenya Airways said they want to look into a long-term goal of co-starting a Pan-African airline group. The two airlines signed a memorandum of co-operation in this regard.
While aviation demand in the southern African region is slowly returning, largely driven by vaccination rates, the industry is still counting the cost of the violence and political upheaval in South Africa, Munetsi said.
