OFFICE GROUND FLOOR, KREDIT HOUSE, 15 PHILLIPS STR, RANDBURG, 2125 | P O BOX 3044, RANDBURG, 2125 TEL: (011) 326-2325 FAX: (011) 886-1721 OFFICE 57 FIFE AVENUE, ROWALLAN PARK, PORT ELIZABETH, 6025 TEL: (041) 371-5298 FAX: (041) 371-5151

WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07 Essential Business Information

RESEARCH REPORT

on

Air Transport

SICCODE: 73000

Report Date: March 2008

Compiled By: Amanda van der Westhuizen [email protected]

DIRECTORS: R MCGREGOR (CHAIRMAN), I JONES (KREDITINFORM), M MPHATSOE (SHANDUKA) A MCGREGOR (MANAGING) Air Transport SICCODE: 73000

Report Index

INTRODUCTION...... 4 DESCRIPTION OF THE INDUSTRY ...... 5 ¾ Commercial Air Transport ...... 5 ¾ General Aviation Sector...... 6 ¾ Military Aviation...... 6 ¾ Routes ...... 6 South African commercial airlines and routes...... 7 ¾ Airlines...... 8 ¾ Airports ...... 9 South African Main Airport Statistics ...... 10 ¾ Economic Deregulation Of Commercial Air Transport ...... 11 ¾ Alliances and Partnerships ...... 12 ¾ Frequent Flyer Programs and Other Loyalty Schemes...... 14 ¾ Leasing...... 15 ¾ Assets and Cost Structure...... 15 ¾ Safety ...... 17 STATE OF THE INDUSTRY...... 17 ¾ Local / Regional...... 17 ¾ International Market...... 20 ¾ Regulations and Standards ...... 26 ¾ Black Economic Empowerment...... 27 SIZE OF INDUSTRY ...... 28 CORPORATE ACTIONS ...... 32 INFLUENCING FACTORS ...... 32 ¾ Economic Environment...... 32 ¾ Information Technology...... 34 ¾ Labour resources...... 34 ¾ Maturity of the Industry ...... 34 ¾ Cyclicality...... 35 ¾ Key Success Factors...... 35 ¾ Key Risks...... 36 CONTINENTAL PRESENCE AND PLANS...... 37 SUBSIDIARY INDUSTRIES...... 37 COMPETITION ...... 38 ¾ Barriers to Entry...... 40 PROSPECTS AND FUTURE OUTLOOK...... 40 ¾ Key Opportunities...... 41 ¾ Key Risks...... 42 INDUSTRY ASSOCIATIONS ...... 42 REFERENCES...... 44 ¾ Publications...... 44 ¾ Websites:...... 44 ADDENDUMS 1...... 51 ¾ International Airlines with Scheduled Services from South African Airports ...... 51 ADDENDUM 2...... 53 ¾ South African Airports...... 53 ADDENDUM 3...... 55 ¾ The Three Largest Airline Alliances...... 55 ADDENDUM 4...... 56 ¾ Top 100 Airlines by Number of Flights for week starting 11 February 2008...... 56

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ADDENDUM 5...... 58 ¾ Top 100 Airports by Seat Capacity Available on International Departing Flights for week starting 11 February 2008...... 58 ADDENDUM 6...... 60 ¾ International Freight Traffic Monthly Rating ...... 60 ADDENDUM 7...... 61 ¾ IATA Member Airlines...... 61 ADDENDUM 8...... 68 ¾ AFRAA Member Airlines...... 68 ADDENDUM 9...... 71 ¾ Members of BARSA...... 71 ORGANOGRAM A ...... 72 ¾ Local Airlines...... 72

Companies Profiled

Aero Africa (Pty) Ltd...... 73 Bateleur Air Charter cc ...... 74 Capital Air (Pty) Ltd ...... 75 Ltd...... 77 Executive Turbine Aviation (Pty) Ltd...... 79 (Pty) Ltd ...... 80 Interlink Airlines (Pty) Ltd ...... 81 National Airways Corporation (Pty) Ltd...... 82 Nationwide Airlines (Pty) Ltd...... 83 (Pty) Ltd ...... 84 (Pty) Ltd ...... 85 Sa (Pty) Ltd ...... 86 (Pty) Ltd ...... 87 Airways (Pty) Ltd...... 88 Swift Flite (Pty) Ltd...... 89 ORGANOGRAM B ...... 90 ¾ Low Cost Airlines ...... 90

Companies Profiled

1 Time Holdings Ltd...... 91 Comair Ltd...... 92 Tulca (Pty) Ltd...... 94 ORGANOGRAM C ...... 95 ¾ International Airlines ...... 95

Companies Profiled

Air France ...... 96 Plc...... 97 Deutsche Lufthansa Aktiengesellschaft Ag ...... 98 Qatar Airways Inc...... 101

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