ARC NEWS
SAA reports profit for year to March 2023
November 22, 2024
South African Airways and its subsidiaries made a net profit of R252 million ($13.9 million) in its 2022/23 financial year, the airline has disclosed. Total revenue in the year to March 2023 rose to R5.7 billion from R2 billion the previous year. The financial year 2022/23 was the first full one since SAA exited business rescue and restarted operations in September 2021. SAA's airline operations generated a positive EBITDA of R277 million, compared with a negative one of R1 billion a year earlier. The airline says the positive performance was achieved despite a challenging global aviation environment and uncertainty around its future with a strategic equity partner. SAA operated six to eight aircraft during the financial year, serving only nine destinations. Since then, it has doubled its number of operational aircraft, and seven more are to be delivered during the financial year 2025/26 under lease deals. The airline has also increased its routes to 16. "These pleasing results of the 2022/23 financial year are emblematic of the hard and careful work that went into the relaunching of SAA as a reliable airline and globally admired brand," states SAA interim chief John Lamola. "This has put SAA on a path to financial sustainability without reliance on the fiscus."


US DOT head nominee to 'make skies safe again': President-elect
November 21, 2024
US President-elect Donald Trump has said his nominee for transportation secretary, Sean Duffy, will "make our skies safe again" by eliminating diversity, equity and inclusion (DEI) for pilots and air traffic controllers. "The husband of a wonderful woman, Rachel Campos-Duffy, a STAR on Fox News, and the father of nine incredible children, Sean knows how important it is for families to be able to travel safely, and with peace of mind," Trump says in a statement, which did not provide details on how DEI policies have contributed to making aviation less safe. The President-elect adds that Duffy will prioritise "excellence, competence, competitiveness and beauty" when "rebuilding" the USA's highways, tunnels, bridges and airports. Duffy started his career as a district attorney for Ashland, Wisconsin, and was later elected to the US House of Representatives for Wisconsin's 7th congressional district, according to Trump's statement. Duffy is also currently the co-host of a programme on the Fox Business Network. As head of the US Department of Transportation, Duffy's role would involve oversight of the US Federal Aviation Administration. The current US transportation secretary is Pete Buttigieg, who was nominated by President Joe Biden.


​EU regulators 'want to keep' thin airline margins: Commission
November 21, 2024
The EU sees slim airline-industry margins as a policy success and "we want to keep it that way," European Commission director for aviation Filip Cornelis has declared. Speaking at IATA's ongoing Wings of Change event in Rome, Cornelis said airlines' slim profitability had been a deliberate consequence of policy and "we like that, because it means there is competition," adding: "We are proud of that and want to keep it that way."

Nevertheless, presenting the EU's viewpoint as it begins a new political cycle with a new Commissioner, he recognised the changed geopolitical environment and the need to increase competitiveness within the European economy, including by taking steps to help the continent’s airlines. Following the European parliamentary elections of June, there is as yet no EU Commissioner for transport, but Ursula von der Leyen has been re-elected as the EU Commission president and appears likely to continue the same general approach as in her first term. She has said this means a focus on implementing policies that have been adopted but are not yet fully operational or working as they should.

"We don't need new measures," Cornelis argues, "but we do need to focus on implementation." For airlines and aviation, this means boosting SAF production because "there we see investment is still to be done," says Cornelis. Airlines have complained that within a few years' time SAF demand will outstrip supply. Cornelis adds that a sustainable transport plan will be produced to promote the production of SAF, particularly e-SAF.

However, he also notes that the message from the Commission president is that "we will stay the course on greening," meaning there is unlikely to be any relaxation on issues such as the incoming SAF mandate. The Commission will also look at factors that impact external competitiveness for the continent's airlines. It will complete work on a strategy to combat carbon leakage, whereby airlines flying into the bloc from outside can avoid abiding by Europe's stringent climate measures and undercut local competitors.

The Commission, Cornelis says, "will consider taking action to alleviate that potential handicap," which will work alongside pushing for a global level playing field on a sustainable aviation policy "that is higher than it currently is." A further dimension is support for the aeronautical industry that designs and builds low-carbon aircraft. Cornelis also mentions work on "upgrading" air services legislation, including a "fitness check" on airport regulation which will encompass changes to the rules governing slots and ground handling, as well as infrastructure funding.

Passenger rights is a further area the incoming Commission is likely to examine afresh, having last looked at the issue over a decade ago. Regarding the Single European Sky programme, he states: "I think it's not dead... We definitely need to work on improving and expanding [air traffic management] capacity," this being "in my view the main challenge for the coming years." He highlights the need for a greater use of AI and automation in managing Europe’s airspace. The European parliament is set to decide on the incoming transport commissioner imminently, perhaps within the next few days. Cornelis expects that the position will be taken by Greece's Apostolos Tzitzikostas.


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