Overview of the developments in the domestic airline industry in South Africa since market deregulation

Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market....

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Main Authors: Rose Luke, Jackie Walters
Format: Article
Language:English
Published: AOSIS 2013-11-01
Series:Journal of Transport and Supply Chain Management
Subjects:
Online Access:https://jtscm.co.za/index.php/jtscm/article/view/117
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author Rose Luke
Jackie Walters
author_facet Rose Luke
Jackie Walters
author_sort Rose Luke
collection DOAJ
description Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.
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spelling doaj.art-a2c325e13547459f99194b7d1ea130d82022-12-21T18:48:00ZengAOSISJournal of Transport and Supply Chain Management2310-87891995-52352013-11-0171e1e1110.4102/jtscm.v7i1.11798Overview of the developments in the domestic airline industry in South Africa since market deregulationRose Luke0Jackie Walters1Institute of Transport and Logistics Studies (Africa), University of JohannesburgInstitute of Transport and Logistics Studies (Africa), University of JohannesburgDeregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.https://jtscm.co.za/index.php/jtscm/article/view/117deregulationair transportlow cost carrierSouth Africa
spellingShingle Rose Luke
Jackie Walters
Overview of the developments in the domestic airline industry in South Africa since market deregulation
Journal of Transport and Supply Chain Management
deregulation
air transport
low cost carrier
South Africa
title Overview of the developments in the domestic airline industry in South Africa since market deregulation
title_full Overview of the developments in the domestic airline industry in South Africa since market deregulation
title_fullStr Overview of the developments in the domestic airline industry in South Africa since market deregulation
title_full_unstemmed Overview of the developments in the domestic airline industry in South Africa since market deregulation
title_short Overview of the developments in the domestic airline industry in South Africa since market deregulation
title_sort overview of the developments in the domestic airline industry in south africa since market deregulation
topic deregulation
air transport
low cost carrier
South Africa
url https://jtscm.co.za/index.php/jtscm/article/view/117
work_keys_str_mv AT roseluke overviewofthedevelopmentsinthedomesticairlineindustryinsouthafricasincemarketderegulation
AT jackiewalters overviewofthedevelopmentsinthedomesticairlineindustryinsouthafricasincemarketderegulation