Role of International Carriers in Growing the Tourism Market
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Role of International Carriers in Growing the Tourism Market. Barbara Dirnberger General Manager Malaysia Airlines Central and Southern Africa. Approximately 80% of all international arriving passengers into South Africa are carried by BARSA member airlines .

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Role of International Carriers in Growing the Tourism Market

Barbara Dirnberger General Manager Malaysia Airlines Central and Southern Africa


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Approximately 80% of all international arriving passengers into South Africa

are carried by BARSA member airlines.


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Airlines base their decisions to operate to a destination based on three key considerations:

Return on investment

Political interests

Market Potential


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Return on Investment based on three key considerations:

  • Local Considerations:

  • City:

  • Management and staff

  • Office rental

  • Communications

  • Marketing and Advertising

  • -Communications

  • Crew accommodation

  • Catering

  • Cargo management and handling

  • Airport:

  • -Landing and parking fees

  • -Ground handling expertise and cost

  • -Management and staff

  • -Equipment, maintenance requirements and availability

  • -Office rental,

  • -Communications

  • -Crew accommodation

  • -Catering

  • -Cargo management and handling

  • Political Stability

  • Aircraft availability commensurate with market demand

  • Bilaterals present and future

  • Slot times present and future

  • Competitive environment

  • Alliances

  • Local infrastructure

  • Crewing

  • Safety and Security

  • Domestic and Regional Network

  • Local Aircraft servicing, maintenance, parts

  • Insurances and Liabilities

Costs


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Return on Investment based on three key considerations:

  • Revenue:

  • Fluctuating currencies

  • Internationally traded currencies

  • Yields per passenger flown

  • Local strategic partnerships

Revenue


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Impact of Online based on three key considerations:

International Service:

South Africa – Buenos Aires


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Brief based on three key considerations:

  • Initiated operations between Malaysia and South Africa October 1992

  • Launched South Africa to Argentina service March 1994

  • One cessation of service from FEB-MAY 2002 – due 9/11

  • Opened one office with 7 staff compliment and is now 36 staff with offices in JNB, CPT and DUR

  • Initial operating aircraft a DC10, then MD11 and now 747 and 777’s.

  • Frequency remains two times a week with very high load factors.


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Resulting conditions due to the freedom and ease of transport between the two countries:

  • Permanent populations in origin/destination countries

  • Increased economic trade, currently USD1billion between Argentina and South Africa.

  • Due to relaxed tourist visa requirements (none for 90 day visit), two major tourism developments:

    • VFR supporting restaurants, retail and local attractions

    • Independent and Package Tours supporting above as well as hotels and indigenous cultural industries


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Resulting benefits: transport between the two countries:

  • Increased Regional development and activity:

  • The route carries a substantial uplift of passengers from regional Asian countries: China, Indonesia, Vietnam as well as regional Latin American countries: Chile, Brazil, Uruguay, as well as regional African countries: Namibia, Botswana, Zambia

  • Increased Domestic development and activity:

  • With the influx of tourist and business arrivals, there is increased demand on domestic flights and this in turn accelerates the demand for frequencies by local carriers, including LCCs.


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Summary transport between the two countries:

  • International Air Service is a complex business of government interests and market driven economies

  • Resulting industries are enormous in scope and proven beneficial to receiving communities

  • Direct International Air Service should be encouraged and facilitated by all parties: Airports, Governments (Transport, Tourism), Airlines.


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thank you transport between the two countries:


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