Africa's newest carrier, Alliance, starts operations in March heralding a new era of cooperation in the continent's aviation industry.
A joint venture between South African Airways and the national airlines and governments of Tanzania and Uganda, Alliance will start by operating charters for SAA. On 1 July it will launch scheduled services from the two East African countries to London, Bombay and Dubai using a B747SP wet-leased from the South African carrier.
Alliance had been expected to start operating last year. The necessary infrastructure was in place but an early decision from the partner governments was not forthcoming.
With most to lose in terms of equipment and manpower, SAA was left cooling its heels until the green light finally came in December. But Alliance executive director Cristo Roodt is eager to play down any suggestion that establishing the tri-national airline has been problematical.
'The process has been much easier than we anticipated. There have been a few hiccups - mainly over the structure of the deal - but they are becoming few and far between,' Roodt says.
South African Airways holds a 40 per cent stake in Alliance, with the other two airlines having 10 per cent each and the two governments 5 per cent each. The remainder is held in trust for possible subscription by investors in Tanzania and Uganda.
With the African continent having something of a chequered history as far as cooperative aviation agreements are concerned, Roodt suggests Alliance is a much stronger proposition, and he is keen to dispel any thought it may go the way of other agreements, such as the original East African Airways or Air Botswana's more recent ill-fated Southern Links concept. He claims all parties have striven to ensure the building blocks are in place to guarantee survival, even though sources indicate relationships between the parties have, at times, been strained.
'This is the first in a new breed of carrier in the East African region, and is pursuant to the Yamoussoukro Declaration which envisaged greater cooperation between Africa's airlines,' Roodt explains, adding that the region will benefit from the resultant growth in tourism.
Roodt declines to put a figure on startup costs. 'Remember that Alliance has contracted with South African Airways to provide certain services. If we were to put a value on them many would be difficult to account for.' Analysts believe the launch cost could be anywhere between $50 and $150 million.
Primary shareholder SAA views the launch as an enhancement of its own reputation as a leader of Africa's aviation industry. The airline has been eager to be seen sharing its resources and expertise in such areas as training and engineering, at a time when potential competition from overseas is emerging. Although the aircraft is wet-leased, Roodt says: 'Cabin crew training programmes are already in place to phase in locally recruited personnel. Staff appointments will be on merit only, and we believe Alliance will offer the best in African hospitality and service.'
Alliance is already eyeing route development opportunities. 'Rome could be one likely destination, and we're looking at figures there. However, experience tells us that we should only enter these markets at the most commercially viable moment.'
Alliance is already eyeing route development opportunities. 'Rome could be one likely destination, and we're looking at figures there. However, experience tells us that we should only enter these markets at the most commercially viable moment.'
Source: Airline Business
