The world’s aviation market is going through a tough time and where a lot of airlines have been affected by this, the damage to SAA is quite severe. The company needs to find a solution and get the situation back to normal or it would have a damaging impact on the country’s airline connectivity. The country would lose connection with which destinations can’t be said yet and it would be clear when the travel restrictions are lifted.
We also have to see whether other airlines operating on behalf of SAA continued to operate. Such airlines have a great presence in the regional and domestic market. If we look at the data, SAA has a huge share in the domestic flights in South Africa, around 40%, whereas the company’s aircraft took only 9% of flights. If we see the international data, the percentage is even higher, at 44%, whereas SAA aircraft took only 19% of the flights.
South African Airlines markets most of the flights, but about half of them are operated by other airlines. Those airlines are also state-owned, but they are facing a bad financial situation as well. There is also a private airline operating on behalf of the SAA, Airlink, and this career is planning to put its code, as the future of SAA is uncertain.
If we talk about foreign flights, SAA took 3,956 flights in January. The company has to face tough competition in the home market, whereas if you look at Ethiopian Airlines, the national careers of the country, the stats are different.
There are only a few international airlines that served South Africa. Around 41% of SAA foreign flights were taken by Airlink. This shows that the airline loses a significant amount of revenue due to the competition. There is a market opportunity, but it’s a big challenge for the career.