by the Minister of Transport MAC MAHARAJ
Johannesburg International Airport, 24 November 1998
Ladies and gentlemen, thank you for inviting me to open British Airways’ new lounge at Johannesburg International Airport.
As shareholding minister of the Airports Company, I always welcome the opportunity to celebrate the opening of new developments that will enhance our airports and improve the travelling experience for our customers.
The extensive expansion of the international terminal by ACSA and the investment by BA in the new lounge at JIA confirms a trend that this airport will become the hub of Southern African aviation as it is strategically placed on our subcontinent for both South Africa and our SADCC neighbours.
In the past four years we have seen an average 10 percent annual increase in amount of people moving through our airports (the majority of which move through Johannesburg) as well as in the number of airlines operating from South Africa rise from 21 in 1990 to 59 today.
This huge increase in volumes has led to increased competition on almost all routes and airfares dropping dramatically.
Some of the current trends in aviation have made people in this country nervous (in particular the trend towards a hub airport to serve a region) and there have been attempts to read the sinister motive into it that certain areas are being disadvantaged.
Let me assure you tonight, there is no conspiracy: the aviation industry is perhaps the most competitive and cut-throat in the world. Because of the competition, the margins are very tight and any means will be used to save costs and increase load volumes.
The facts are very simple: the aviation industry has found it cost effective on long-haul flights to fly to one destination in bigger and fuller planes, and then reroute passengers to a variety of other destinations in smaller planes.
I suppose, you are wondering why I am telling you (an audience aux fait with current trends in aviation) what it common knowledge in your industry.
The reason is simple: it has come to my attention that some airlines who want greater, and perhaps unfettered, access to our market are using the fears of certain people and the media in this country to serve their own agenda.
I have therefore decided to use this opportunity to address this issue. The air services agreements between Britain and South Africa are negotiated on a government-to-government level.
Before we go to the negotiations consultations are held with the various relevant roleplayers in South Africa before we finalise our mandate. But the overriding factor for me as the responsible minister of this country is what is in the national interest of this country: in terms a tourism, business, trade, the sustainability and growth of the aviation sector.
The British authorities have a similar process, but what has become a disturbing trend for me is the questioning of our national interest in terms of foreign business interests.
At the last round of talks in July, when the rand-pound exchange rate had plummeted and the Asian crisis had hit emerging economies for six, we set the growth rate at 15% and accordingly agreed to one ore frequency on the London-South Africa route.
We were not far off the mark. The July statistics show that the year on year growth was 14,7%. We also agreed to monitor the situation closer and hold the next round of talks earlier if the situation demanded it.
I want you to leave tonight with no uncertainty: we want this route to grow, but not at any price or not in a short-sighted way that will undermine the national interest of this country.
My message to foreign airlines who are unhappy with the situation is: convince your government to put these issues on the table for negotiation and then we can talk about them.
None of us can settle our disagreements via the back door. We must use the channels that we have worked so hard to established.
In South Africa we have a clear vision of where we are going and what is in our interests. We are committed to competitive transport practices and serve the customers of them.
We hope that there is enough synergy between us that we can build together in both our interests.
You are one of our most valued customers with the largest number of frequencies to South Africa, so it is appropriate that you have facilities at Johannesburg International Airport tailored to the needs of your passengers.
You have just added your sixth service to Cape Town, which is your 26th service to South Africa, and is an indication of your own-going commitment to our business and tourism industries.
British Airways has a long history of serving South Africa and Cape Town in particular. They started their first passenger service as Imperial Airways back in 1932 when the journey took 11 days and 10 night stops.
Today its Boeing 747-400s do the journey in about 11 hours.
I wish British Airways well tonight. It is an honour to declare the new Terraces lounge for Executive Club members open and long may your travellers enjoy these facilities.
Didi Moyle
PA and Media Liaison Officer to the Minister of Transport
Pretoria: (012) 309 3131 (phone) or (012) 328 3194 (fax)
Cape Town: (021) 457260 (phone) or (021) 461 6845 (fax)
email: moyle@ mweb.co.za or moyled@ndot.pwv.gov.za (Pretoria only)
cell: 082 808 5108