SAA joins forces with other African carriers to stave off jet-fuel price crisis

African airways are clubbing collectively to negotiate higher costs and a gentle circulation of jet gas, a transfer to assist stave off a possible crisis attributable to provide points and hovering prices.

A committee has been shaped – together with main carriers equivalent to South African Airways and Kenya Airways – to safe deliveries for 12 months beginning in July, African Airlines Association secretary-general Abderahmane Berthe mentioned throughout a briefing within the Kenyan capital, Nairobi.

“We are in the last round of negotiations, the process will end in June,” he mentioned.

The talks began even earlier than a weekend of turmoil in Nigeria, Africa’s most populous nation, the place airways threatened to cease flying till additional discover in response to surging gas costs following Russia’s invasion of Ukraine. They later referred to as off the plan after the federal government agreed to maintain talks with The Airline Operators of Nigeria commerce group to try to search a decision. Nigeria has 23 carriers, largely very small.

In South Africa, the nation’s airports operator mentioned some airways have been cancelling flights due to fuel-supply points and pledged to treatment the state of affairs.

Jet-fuel costs have escalated to a median of virtually 30% of working prices for African airways from 20% beforehand, Kenya Airways chief govt officer Allan Kilavuka mentioned through the Nairobi briefing.

“We are looking at other areas where we can control costs,” the CEO mentioned. Kenya Airways was already struggling to survive earlier than the current upheaval, struggling years of losses and rising debt.

The African Airlines Association’s Berthe mentioned one of many continent’s long-standing aviation issues is there are too many airways for the quantity of journey demand.

“Every country wants to have a national carrier, they want to create a hub – this is not possible,” he mentioned. “We may need six or seven global operators and some intra-African operators with the two systems working together to create codeshare agreements.”

Read: South Africa faces shortages of these things – and it’s making a headache for companies

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