IATA Director General and CEO Giovanni Bisignani, praised (05-May-2011) South Africa for its "strategic focus on tourism as a key driver in the nation’s New Growth Path plan" and urged the government to use "joined-up policy thinking" and take key measures to bolster its air transport sector to achieve the 235,000 new tourism jobs that the government is targeting by 2020. IATA urged a review of South Africa’s economic regulation of air transport infrastructure. According to IATA, the regulatory process is allowing Airports Company South Africa (ACSA) to raise its charges by 129% for the 2010-2015 period and for Air Traffic and Navigation Services (ATNS) to raise its charges by 71% over the same period. IATA also took aim at the proposed inclusion of aviation in South Africa’s carbon tax scheme. [more]
IATA encouraged by South African tourism initiatives but urges review of airports and ATM
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Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.