Demand for international travel growing

Picture: Bongiwe Mchunu

Picture: Bongiwe Mchunu

Published Feb 2, 2011

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The airline industry is continuing to recover from the effects of the recession, with demand for international travel still growing although the rate of growth has slowed since the beginning of the year.

Africa is becoming an increasingly popular destination and, although Delta is still the only US airline to fly to this country, United – one of SAA’s partners in the Star Alliance – has begun flights between Lagos and its home airport of Washington by way of Accra in Ghana.

Nigerian airline Arik Air, which competes directly with SAA on the routes between Lagos and Johannesburg, and Lagos and New York, in addition to offering domestic and regional West African routes, has strengthened its position by launching a frequent flyer programme which allows points to be used for a larger baggage allowance as well as for free flights. SAA’s Voyager programme, of course, has proved an attraction that many business travellers are reluctant to give up.

Marthinus van Schalkwyk, our minister of tourism, is also chairman of the World Economic Forum’s (WEF) council for aviation, travel and tourism. He was in Davos for the WEF meeting this week and warned delegates about risks to both industries against which co-ordinated action would have to be taken worldwide. These included cyber terrorism, such as the threat of sabotage of air navigation systems, dealing with pandemics such as the H1N1 influenza, and natural disasters such as the Icelandic volcano eruption that caused UK and northern European airports to be closed for several days last year.

Other problems he mentioned, affecting both tourism and the aviation industry, included discriminatory travel taxes such as the high British departure tax on airline passengers, which rises with the distance travelled, affecting long-haul destinations such as South Africa.

One problem which he apparently did not mention was the threat of rising oil prices. The soaring price of aviation fuel in 2008 hit the whole airline industry very badly, pushing some airlines out of business and many in the US into bankruptcy even before the recession.

The drop in passenger numbers when the recession set in, reducing demand for fuel, brought the oil price down again but most airlines are prepared for a rise now demand for travel has risen, and have hedged against it.

The whole industry, including aircraft manufacturers, is also trying to reduce its need for fossil fuels. Airlines have ordered new, more fuel-efficient aircraft, the industry is experimenting with biofuels that cause less pollution and the International Air Transport Association (IATA) has pressed governments to allow shorter routes.

The new International Airlines Group (IAG) was formed on Monday through the merger of Spanish airline Iberia and British Airways, and customers now have access to a network of more than 200 destinations on five continents.

The group has a combined fleet of 400 aircraft and issued a statement that passengers would be offered better connections and timetables through the co-ordination of services that will take place over the next few weeks and months.

Meanwhile members of either Iberia or BA’s loyalty programmes will earn double points for flights between London and Madrid, Barcelona and Malaga.

Members of Iberia’s loyalty programme will earn double points for flights with BA to Asia and the Middle East, while members of the BA programme will earn double points for flying with Iberia to central or South America.

Willie Walsh, former chief executive of BA and now of IAG, said its goal was to attract more airlines “but, importantly, the right airlines” to join the group.

The 15th annual Dubai shopping festrival is on until February 20.

Emirates airline, which flies daily to Cape Town, has teamed up with beach and city hotels to offer a free night’s stay to travellers who book for four nights during the festival.

Tourists enjoy tax-free shopping and discounts of up to 50 percent while it is on. Other attractions are daily draws to win prizes and free entertainment ranges from jazz music to cartoon shows.

Audrey.D’[email protected] - Weekend Argus

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