Sunday 26 June 2016

MOZAMBIQUE: Aviation Industry To Improve

Fly Blue Crane recently announced plans to service Mozambique and is currently awaiting its foreign operator permits. The airline has been granted 14 frequencies a week between Johannesburg and Maputo and is expected to announce a launch date shortly.

“This is very good news for hotels and operators/travel agents who book Mozambique, provided the rates are good,” said Karin Sieberhagen from Serena Hotels.

Natalie Tenzer-Silva from Dana Tours said a low-cost carrier was needed to fly into Maputo. “We would welcome the arrival of any carrier that would offer competitive rates to boost the tourism market to Mozambique.”

However, Fly Blue Crane CEO, Siza Mzimela, said the Maputo route would require careful planning because the airline had been restricted to 400 seats a week on the route.

Restrictions in air access and high-priced flights have led to a decline in tourism to Mozambique, but tourism suppliers hope that the recent announcement by Fly Blue Crane will provide cheaper flight options to the destination.

Another factor cited by members of the trade as one of the things holding back tourism growth is protectionism.

South African airline operators have faced cabotage enforcement in Mozambique that has led to a decline in tourism business in the destination. “Any foreign airline or foreign carrier can only fly into one destination,” explained Brian Holmes, MD of Solenta Aviation Mozambique. The cabotage restriction prevents any commercial operators from flying to multiple destinations, for example to Vilanculos via Maputo.

“One of the effects from the enforcement of cabotage that we’ve seen, is that there’s a decline in business overall from a tourism perspective because it does make Mozambique an expensive destination,” said Holmes.

Federal Airlines used to operate scheduled flights from both Johannesburg and Kruger to Vilanculos. “We stopped that about three-and-a-half years ago and now our flights to Mozambique are on a private charter basis, which we provide as and when required,” said Nik Lloyd-Roberts, the airline’s Commercial Manager.

He said an increase in competition also contributed to the termination of scheduled flights.

“The route became unprofitable for us.” On future plans to service Mozambique, he said: “Unless they lift their foot off the cabotage there are no immediate plans from our side.”

Holmes said: “We’re not asking for anything more than what South African operators would be up in arms about if we did the same in South Africa.”

While local South African charters do have the disadvantage of cabotage, they do have some advantages. Holmes said South African operators did not pay the 14% VAT on charter flights nor a 10% withholding tax that Mozambique operators had to pay. Local operators in Mozambique are at a 24% disadvantage on local charters compared with South African operators, who come out cheaper.

Tenzer-Silva added that another challenge was the international ban on Mozambique-registered aircraft.

“This means that international travellers from certain European countries are not permitted to fly on any carrier registered in Mozambique because their insurance will not cover them. SA Airlink, being South African registered, offers an alternative to these travellers, however they do not service the domestic routes in Mozambique.”

According to Tenzer-Silva, Mozambique needs to be marketed as a stand-alone destination.

“Affordable and reliable air travel is a vital component, otherwise we are pricing ourselves out of the market.”

Currently Airlink operates flights from Johannesburg to both Pemba and Vilanculos on Mondays, Tuesdays, Wednesdays, Fridays and Saturdays.

Airlink also operates flights from Johannesburg to Beira, Nampula and Tete and from Durban to Maputo.

SAA offers flights to from Durban and Johannesburg to Maputo.

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