Original Research

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

Rose Luke, Jackie Walters
Journal of Transport and Supply Chain Management | Vol 7, No 1 | a117 | DOI: https://doi.org/10.4102/jtscm.v7i1.117 | © 2013 Rose Luke, Jackie Walters | This work is licensed under CC Attribution 4.0
Submitted: 13 August 2013 | Published: 18 November 2013

About the author(s)

Rose Luke, Institute of Transport and Logistics Studies (Africa), University of Johannesburg, South Africa
Jackie Walters, Institute of Transport and Logistics Studies (Africa), University of Johannesburg, South Africa


Share this article

Bookmark and Share

Abstract

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.

Keywords

deregulation; air transport; low cost carrier; South Africa

Metrics

Total abstract views: 5015
Total article views: 30202


Crossref Citations

No related citations found.