Business News of Friday, 11 April 2025
Source: www.ghanawebbers.com
The airline industry is facing bureaucratic barriers that hinder growth in Africa. The South African Airways (SAA) has called on governments to reduce airport charges. They also want to strengthen collaboration to lower air travel costs and boost intercontinental travel.
SAA’s CEO, Prof. John Lamola, spoke at a dinner for travel trade professionals. He shared the airline's recovery strategy after restructuring and its vision for better connectivity across Africa. He highlighted that high airport user fees and reliance on imported aviation fuel raise travel costs.
Africa's low refining capacity means aviation fuel can be 30% more expensive than in other regions. Protectionist policies, high taxes, and limited direct flight routes also increase operational costs for airlines. “Airlines and governments must work together to address these issues,” he said.
SAA has seen success with its Accra route, linking Southern, West, and international markets. The airline plans to increase flights from Accra to Johannesburg from three times a week to daily. They are also exploring the Accra-Cape Town route to improve customer experience.
Prof. Lamola cited IATA statistics showing intra-Africa travel accounts for only 2% of global air travel. He emphasized the need to stimulate air travel for economic growth in Africa. Collaboration boosts tourism by promoting cultural sites in Ghana and attractions in South Africa.
He mentioned the visa waiver initiative between Ghana and South Africa as crucial for market demand. This collaboration can enhance tourism, cultural integration, and business partnerships. “The removal of visa restrictions is a beacon of hope,” he said.
Since the visa waiver was introduced in November 2023, Ghanaian tourists visiting South Africa surged by 149%. This shows how removing travel restrictions can promote tourism and trade between countries. “This initiative stimulated our people to explore their continent,” he added.
South African Airways has a rich history spanning 90 years despite financial challenges. After a recent business rescue process, SAA emerged leaner and more focused on strategic goals. They have resumed operations with profitable routes and improved service quality.
“South African Airways is one of the oldest airline brands on the continent,” Prof. Lamola noted. Their journey has involved significant transformation towards efficiency and sustainable growth.
Looking ahead, SAA aims to drive Africa’s aviation revival with its renewed focus. Ghana is seen as a key hub for West Africa, promising better connectivity and stronger economic ties across the continent.
“Our future in Ghana involves strengthening partnerships with tourism authorities,” he emphasized. SAA seeks synergistic growth through collaboration with local businesses and travel partners along this vital Accra route.