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Immigration regulations: SAA stood to lose millions

Source: Tourism Update, 18/11/2015

SAA recorded a 41% drop in children travelling after the requirement
for minors to produce an unabridged birth certificate was
introduced.

The amended visa dispensation has had a profound impact on the South
African tourism sector and the operations of SAA, which stood to lose
an estimated R574m per year before the regulations were
overhauled.

This was revealed by SAA`s newly appointed acting CEO, Musa Zwane,
who, together with SAA Board Chairperson Dudu Myeni, appeared before a
joint sitting of the Standing Committees on Finance and Public
Enterprises at Parliament in Cape Town on November 18.

Zwane said the estimated loss was based on SAA having recorded a 41%
drop in children travelling and 7% less adults traveling between June
and September this year. There had also been a 3% drop in infants
traveling during the period. The requirement of unabridged birth
certificates had resulted in a drop of 1.4m to 1.2m passengers
traveling on SAA during the same period.

He said transit visas also presented a serious hindrance to the
development of OR Tambo International Airport as a continental
hub.

Zwane however also acknowledged that the visa restrictions were not
wholly to blame for the financial losses at SAA over the past few
years. He said other contributing factors included a weak currency; an
ageing fleet and increasing high funding costs.

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