Bilateral agreements stifle airfreight growth

AS SOUTH African Airways Cargo positions itself for further growth in the southern African market, the airline faces stiff competition from Asian, European and American airlines that have over the years successfully penetrated this market. “These challenges include trade restrictions (i.e. bilateral air services agreements and aero-political issues), one-directional cargo and trade, dumping of capacity by the European airlines, and reliance on belly space,” says general manager SAA Cargo Patrick Dlamini. Dlamini believes that some African countries are selective when it comes to granting air freedom rights. “Priority is usually given to airlines outside of Africa rather than to other African countries, but there is a glimmer of hope now that African countries have begun communicating on improving these restrictions. SAA CEO Khaya Ngqula is also playing a pivotal role in these discussions,” said Dlamini. He suggests that there is an urgent need for African politicians to produce unified airline policies that will be favourable to African airlines as is the case in Asian and European countries. “The aim is to serve more African countries,” he said. “Some countries in the east and southern region have done very well, while the potential of other markets, for example Angola where there is a huge demand for capacity, is still hampered by trade restrictions. “For the past three years we have been battling to get more capacity. However, the Department of Trade and Industry is working on that agreement,” said Dlamini.