Tuesday, 4 June 2013

'Whole of State' aviation policy alignment critical to aviation's efficiency and economic contribution

Successful state owned airlines’ critical success factors include clarity of mandate and a harmonised ‘Whole Of State’ aviation policy framework. Global air services drive almost all economic sectors, delivering trade, employment, tax revenues, job creation, skills development and a substantial direct and indirect contribution to Gross Domestic Product and, along with the catalytic demand impact on related sectors such as tourism, the importance of an aligned whole of state aviation policy in developing economies cannot be underestimated. 
 
“SAA continues to answer its mandate vis-à-vis national development,” says the SAA Group’s Nico Bezuidenhout, “in South Africa alone the value of SAA extends well beyond its balance sheet with the airline functioning as a substantial economic enabler.” As measured by a recently commissioned Oxford Economics Study the group comprising SAA, SAA Technical, low cost airline Mango, SAA Cargo, Air Chefs and SA Travel Centre, collectively contributes 3,6 billion Rand through direct output to the South African economy, 4 billion indirectly through its supply chain and 1,6 billion Rand through spending employees and respective supply chains. In addition there are 12,4 billion Rand in catalytic benefits through tourism bringing a total contribution to the South African economy to 21,6 billion Rand. 
 

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