South African Airways (SAA) is not considering major price increases this year following an escalation of international fuel prices, said CEO Khaya Ngqula on Wednesday.
”There will be no astronomical price increases, but the company will only recover the money through levies,” Ngqula said.
When oil prices come down, the levy will come down as well, to the benefit of SAA’s customers.
Ngqula said international fuel prices have a major impact on SAA’s business.
He was addressing a media briefing at Airways Park on the plans the airline is developing with Star Alliance, an international group of airlines.
SAA is the only African airline affiliated to Star Alliance and is currently discussing better ways of servicing the continent. Egypt Air will join at the end of the year.
Star Alliance CEO Jaan Albrecht said Africa is very important in the alliance because it offers growth and opportunity. ”Star Alliance has identified Africa as the number-one destination in terms of growth.”
He said this necessitates the need for more routes. ”Going forward, we will be consolidating routes to Africa. This would bring Africa to the world and bring the world to Africa,” he said.
Ngqula said that considering the Confederations Cup next year and the 2010 World Cup, Star Alliance is key in ensuring that South Africa deliver a successful 2010. ”A strong SAA with Star Alliance support is good for South Africa and good for 2010.”
He said among the challenges that air-traffic operators in Africa are facing are the implementation of the Yamoussoukro Declaration and other bilateral agreements regarding access and routes. The declaration concerns the liberalisation of access to air-transport markets in Africa.
”We are forced to negotiate with governments throughout the continent, and that is a challenge,” he said. — Sapa