MFLF Workgroup - Aviation Sector

Background

The Aviation Sector of the MFLF Workgroup meets to discuss the implementation of the National Freight Logistics Strategy in the Aviation Sector in Mpumalanga Province.

Although it would at first seem that the Aviation Sector Workgroup is of concern mostly to stakeholders who are directly involved in the aviation industry, this workgroup is of importance to all stakeholders with an interest in moving cargo, irrespective of the mode of transport used, as it provides stakeholders with an alternative mode of transport which they may have an increased stake in at any point in the future.

The NFLS situational analysis on the challenges faced by the South African Aviation Cargo Sector recognises the limited neutral information available, as most research in this component is conducted as a result of vested interests. Stakeholder participation is therefore crucial to developing and implementing the avaition component of the NFLS in Mpumalanga Province.

The NFLS situational analysis of the aviation component recognises the following key challenges:

 

NFLS Aviation Sector Financial / Economic Challenges

• Low returns on investement in freight handling infrastructure at airport at existing hubs and feeder airports discourages investment in freight facilities
• Freight Operators registered in other African countries tend to have lower operating costs than South African operators due to the weaker enforcement of safety regulation and levies charged
• International Operators are able to charge less than local operators for cargo leaving South Africa as they are exploiting a "paid for" empty leg
• Although the principal of equal opportunity is applied in bi-lateral agreements, structural barriers to entry still exist in certain markets (e.g. landing slots at Heathrow)
• Slow implementation of the Yammousssoukro declaration to liberate African Skies

 

NFLS Aviation Sector Customer / Stakeholder Challenges

• Poor reliability of service due to the use of belly freight (i.e. bumping)
• Lack of scheduled freighter capacity on North / South route due to lack of consistent demand from the South African market
• Smaller players tend to experience delays at customs at major hub airports e.g. Johannesburg

 

NFLS Aviation Sector Human Resources / Social Challenges

• Sector needs to implement Black Economic Empowerment Charter
• Weak link between the negotiation and implementation of Air Service Bi-lateral Agreements to the negotiation of and implementation of trade agreements and foreign policy

 

NFLS Aviation Sector Operational Challenges

• Comparatively low productivity at major hub airports in South Africa in relation to international benchmarks
• Inconsistent enforcement of of regulations within South Africa and other parts of Africa allows non-compliant operators to undercut compliant operators

 

MFLF Aviation Sector Objectives

The objectives of the MFLF with regards to the Aviation Sector aims to achieve the following

• Full optimisation of Kruger Mpumalanga International Airport (KMIA) to ensure growth and development of region
• Maximisation of the use of cargo facilities
• To promote cost effective air freight movement
• To develop viable local cargo hubs where appropriate
• Increase efficiency of air freight options

The Aviation Sector Workgroup business is often conducted under Combined Workgroup Meetings. Stakeholders who wish to participate in this sector within the MFLF Workgroup can stay informed about the next Aviation Sector meeting by looking at our Upcoming Events page, through RSS or by subscribing to the MFLF Secretariat's regular newsletters. All participants with an interest in moving freight are welcome.