Airlines confident of flying higher this year

Industry well primed for growth after recession, thanks to World Cup boost

International airlines experienced a mixed fortunes in 2010. Due to the recessionary pressures that were at their peak early on, international travel - leisure and business alike - took a big dip, giving rise to some concern in the sector, according to Fouad Caunhye, Emirates regional manager for Southern Africa.

However, he said the 2010 Fifa World Cup provided a timely boost to the industry, and like most international carriers, Emirates enjoyed a big rise in passenger numbers.

More importantly, traffic remained strong for the rest of the year, particularly over the Christmas period.

Globally there was some economic recovery in the second half of 2010 and British Airways expects this to continue into 2011.

"The recovery will be slow, but we expect it to be sustained. We are reasonably well positioned as we've reduced our costs and are introducing permanent structural change across the airline," said Sue Botes, British Airways commercial manager in South Africa. "Ultimately this will ensure we are able to sustain profitability."

Caunhye said the recession proved to be a blessing in disguise for domestic airlines.

"As a result of the downturn, a large number of holidaymakers chose to remain in their home country rather than book trips abroad," he said.

"For South African domestic airlines, the increased traffic they witnessed was further bolstered by the World Cup, as they carried soccer followers and general tourists around the country during the tournament."

According to Botes, British Airways' operation in South Africa had a reasonably good year, and was certainly boosted by the World Cup, coming as it did in the middle of the traditional winter trough.

"We're particularly pleased by the growth in corporate business and the demand for our premium cabins, and will continue to invest in these. We're the only carrier operating a direct, first-class service between South Africa and London, and are in the process of introducing our new £100-million First Cabin on the routes.

"This year we'll also be refurbishing our premium and executive club lounge in Cape Town. Through our opportunities grants programme, we're also engaging the SMME sector, which we believe will drive a lot of future growth. We've also just relaunched On Business, a loyalty programme specifically targeted at this market," said Botes.

She added that British Airways had used specials to encourage discretionary travel, and will continue to offer competitive fares and the best possible value for money.

"We are investing in our World Traveller (economy) and World Traveller Plus (premium economy) cabins, and customers can look forward to new in-flight entertainment, providing 50% more movies and double the range of TV and music options," Botes said.

"We've also increased our hand luggage allowance to two bags for full economy customers. On the ground we launched home-printed boarding passes late last year, and are working on introducing mobile boarding passes in South Africa. Customers can check in using smartphones and get the boarding pass sent to their phone."

Caunhye said 2011 has started very positively for domestic and international airlines.

"Despite the harsh winter and heavy snowfall that affected the UK and parts of Europe, passenger numbers have been very satisfactory," he said.

"This is largely because South Africans tend to prefer warmer, tropical getaways during the northern hemisphere winter. Domestic air travel has also received a boost from an increase in consumer spending, as well as the revival of business travel."

He expects growth for Emirates in 2011. "Emirates' robust expansion plans continue apace, as is evidenced by the continued growth of its network over the past 12 months.

"From August this year, Emirates will launch its first passenger service into Scandinavia, with daily, non-stop flights to Copenhagen.

"The city will mark Emirates' 112th international and 27th European destination.

"This year will also see many more Airbus A380 super-jumbos taking to the skies as airlines introduce the flagship aircraft to more destinations.

"Emirates already operates the super-jumbo from Dubai to Paris, Jeddah, Seoul, Bangkok, Sydney, Auckland, Beijing, Manchester, London and Toronto.

"And with 75 Emirates A380s still on order, a great many other cities can look forward to welcoming this leading aircraft in the future, including, let's hope, South Africa," he added.