New airfreight destinations add growth impetus

Feeding into Sadec helps balance loads
JOY ORLEK
SAA CARGO has recorded 40% growth on international routes over the past two years and is on track to achieve its 20% per annum growth target for the next five years, says GM Patrick Dlamini “The buoyant local economy is part of the reason, but we have also increased capacity with the acquisition of a longhaul freighter and improved efficiencies within the system,” he said. With several new destinations to be added this year – driven by the passenger division – the outlook, he believes, is positive. “Chicago, South America, Asia and India will be added to the schedule while increased frequencies within Europe and Africa are also on the cards. “We’ll also be ramping up our longhaul freighter performance which will translate into very handsome growth,” said Dlamini. The US and Europe have been critical elements of the airline’s positive performance and this will be no different going forward. “On our Europe routes we are feeding into the Sadec (Southern African Development Community) region which is an important factor in balancing our loads. “In Asia cargo directionality is more of a problem with the empty outbound leg.” SAA is also looking at greater involvement in up-and-coming markets like the Middle East, although plans are still in their infancy, he said. “Feasibility studies are under way and we’re hoping to have a clearer picture in the next three months.” Fierce competition is however keeping all players on their toes. “The Gulf airlines, for example, are leveraging their geographic DNA – the cargo they’re moving doesn’t originate in the Gulf. It’s a question of streamlined hubbing. “We can only survive based on efficiencies because there is pressure on yields and customers can play one airline against another.” Despite these challenges and with an encouraging outlook for fuel, Dlamini is bullish about SAA growth ambitions for the year ahead.