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Aviation in Angola is comprised of several local airlines, all of which are blacklisted from flying to the European Union with exception of TAAG, which is subject to conditions. TAAG Angola Airlines is the flag carrier of Angola. Based in Luanda International airport, the airline has a large domestic network. The Department of Civil Aviation regulates all activities of civil aviation in national and international airspace within the jurisdiction of Angola.
Airports in Angola
20 total articles
TAAG Angola Airlines is discussing with Boeing a potential acquisition of additional 737 aircraft which would be used to rightsize and grow its fleet. TAAG operates an all Boeing fleet and has traditionally relied on guarantees from the US Ex-Im Bank, which has an uncertain future under the administration of the new US President Donald Trump.
TAAG prefers to stick with the 737 to support regional growth and potentially replace some of its older model 777s. It is not yet considering other aircraft options – such as the Airbus A320, Embraer E190 or Bombardier CSeries families. However, TAAG and its government shareholder will have to consider other manufacturers – and other loan guarantees schemes – if Boeing does not come up with a viable financing alternative.
TAAG has completed an initial phase of a turnaround, posting a near break even result in 2016, but needs to change its fleet composition to position the airline for long term profitability. The government owned airline has too many 777s, given the limited size of its long haul network, and also needs to retrofit at least some of these aircraft as they are in an unideal three class configuration.
TAAG Angola Airlines is expanding its long haul operation following delivery of two additional 777-300ERs and is looking to build up its regional network. A new strategy being rolled out with the assistance of its new partner Emirates focuses on developing a hub in Luanda and pursuing more sixth freedom transit traffic.
TAAG recently added capacity to Portugal, the only European country in its limited long haul network. TAAG is now preparing to launch new European routes, taking advantage of opportunities made available by its recent removal from the EU blacklist.
However, TAAG faces huge short term challenges as the decline in oil prices has subdued demand in its home market. TAAG remains unprofitable, and it will not be easy to turn the airline around in the current environment.
Africa is a region of huge opportunity - as has been observed for decades - but even bigger challenges. Africa’s airlines continue to struggle and collectively remain in the red while airlines in every other region in today’s favourable environment are profitable.
Structural changes and a new mindset from African governments are desperately needed. Political interference and government meddling in airlines is a common problem, as well as protectionism and unnecessarily high taxation.
In this report CAPA looks at the continued struggles of South African Airways and the new business models being pursued by Air Mauritius and TAAG – both of which are keen to develop new transit hubs. Ethiopian’s rapid growth and remarkable success highlight the opportunities in Africa that can be exploited with the right strategy.
LATAM Airlines group continues to expand internationally as weak economic conditions within Latin America linger. The company has already slashed growth targets for Brazil, which is LATAM’s largest domestic market, and one of the weakest economies within the region.
LATAM’s latest round of international flights includes linking its Lima hub to Washington DC and proposed new service from Sao Paulo to Johannesburg. The company also aims to bolster its connections to the Caribbean with flights from Bogota and Brasilia to Punta Cana. Those new routes join other long haul additions in 2015 including Sao Paulo to Barcelona, Toronto and Cancun, Lima to Orlando and Santiago to Milan.
The moves show the balance LATAM is attempting to strike in building its network utility and deploying capacity to stronger markets while managing falling demand in weaker regions. Unfortunately, it appears the challenges within Latin America will remain in place for the short term as growth prospects for the region’s major economies have been refined downward for 2015, and modest growth is predicted for 2016.
Emirates Airline is the world's largest international carrier based on ASKs. That formidable size – over 50% that of second-largest Lufthansa – means Emirates can be relatively independent but also perhaps needs to limit forays in the partnership arena in order to remain focused on its core and growing business. Conversely, its size can put off potential suitors. A strategic Emirates partnership move is a rare occurrence, and its latest comes just 18 months after beginning its landmark partnership with Qantas in Australia, a significant market where Emirates at the time had 84 weekly flights. In contrast, the latest partnership is with TAAG in Angola, where Emirates has a mere seven weekly flights.
The TAAG-Emirates scale may be smaller than Emirates-Qantas, but it will be far deeper. Emirates will manage the airline, including naming a new CEO, reviewing the airline from operations to livery and appoint four Emirates managers to the airline.
Emirates will not take an equity stake in TAAG, but otherwise the deal has the hallmarks of Emirates' longtime partnership with SriLankan, which eventually dampened Emirates appetite for getting too involved in other airlines. There could undoubtedly be benefit to Emirates: Angola is a restricted but high-yielding market. Yet TAAG, in need of restructuring, has been unable to capitalise on its home market. But there also appear to be political undertones to the deal, with the UAE focusing on trade to Africa, and in particular oil-rich Angola.
fastjet has reported a USD42 million net loss for the six months to 30-Jun-2013, but its directors remain upbeat about the fledgling African LCC’s prospects, with its Tanzanian domestic operations exceeding expectations and making a profit on an underlying route basis. But the directors acknowledge in the unaudited accounts that the carrier will need to raise further funds in the future “which represents a material uncertainty over going concern”.
fastjet’s ambition to establish Africa's first pan-African low-cost carrier is continuing to encounter strong headwinds. On its own admission, the Tanzanian market is too small to sustain the company and international expansion is critical to its longer term survival.
But the first international route from Dar es Salaam to Johannesburg has, perhaps predictably, run foul of South Africa’s bureaucrats forcing the eleventh hour postponement of the route launch by about two weeks to the middle of Oct-2013. fastjet will compete against South African Airways (SAA) as the only other operator on the route and has promised to reduce fares by 60%. fastjet is taking online bookings for flights departing from 18-Oct-2013.