AASA Confident In Achievable Aviation BEE Targets Amid Call For Government Support To Reduce Costs

The recently released Draft Domestic Aviation Sector Broad-Based Black Economic Empowerment (BEE) Scorecards and Amendments are “achievable”. This is according to Aaron Munetsi, CEO of the Airlines Association of Southern Africa (AASA), who added that it is crucial that government provides an enabling environment.

“The targets were a matter of compromise by both government and airlines. There is an understanding that the targets will be reviewed and or revised either downwards or upwards depending on the performance of the sector,” said Munetsi. “AASA is satisfied that the targets are achievable, on condition that the government provides an enabling environment by reducing costs.”

Munetsi explained that there was a necessity to clarify transformation targets by recognising the industry's progress, and that it should consider the size of the industry and current economic factors, such as high costs, the capital-intensive nature of the sector, its low margins and low return on investment.

“Transformation should encompass all employee levels, not just in the flight deck or above the wing,” he said. “Other means of compliance include ensuring airline spend with businesses owned and managed by previously disadvantaged communities through supplier and enterprise development programmes. Technical training and employment of previously disadvantaged individuals are also essential components of the transformation process.”

The draft code clarifies that ownership targets only apply to South African-domiciled airlines and not to other carriers.