Minister Dipuo Peters: South African Aviation Forum

Programme Director
Honourable Ministers of Transport in Africa
Leaders and Representatives of Countries and Organisations
Members of the Bureau
Distinguished guests
Members of the media
Ladies and gentlemen

Ladies and gentlemen, I am delighted to join you in this US – South Africa Aviation Forum – which has been dubbed the “Future of Aviation Leadership”.   Occasions like this one offer an opportunity to reflect on a critical contribution the aviation sector continues to make in developing our economies.

I wish to thank the organisers for the invite and would like to take this opportunity to express our deep appreciation to the sponsors in particular the U.S. Trade and Development Agency (USTDA) for having initiated this Forum, which indicates commitment to its course under the dynamic stewardship of Ms Leocadia Zak.

This Forum could not have come at a better time than now.  This is partly because our SA Government is driving the transformation agenda, at the heart of which is our desire to build a workforce necessary for the sustainability of our aviation industry to compete in the global arena. 

You may also be aware that the development of the aviation industry in South Africa is faced with a plethora of challenges among which is the under supply of critical skills, which has continued to remain acute amongst previously disadvantaged individuals.

The purpose of this Conference is particularly apt, considering the importance that various Governments, globally, are also placing on the sustainability of the aviation sector. This conference is therefore well-timed and saves as a stark reminder of how aviation remains an iconic sector for global economic growth.

As South Africa, we therefore think it is vital that we take a Continental and International perspective whenever we turn to aviation matters.

We can talk all day about priorities or the pros and cons of country measures, but the fact is that as a country we need a globally competitive aviation industry to support our economy, tourism, manufacturing and service industries - just as much as we need strong leadership and skills to deliver a more sustainable aviation industry.

It is against this backdrop that while it is true that the aim of this Forum today is to deliberate on skills and leadership matters, but it would be unjust of me not to touch briefly on among other things our aviation policy transformation agenda. But later in my input, I will then delve into the issues of skills and leadership which are a subject of this Conference.

I do intend to focus my remarks briefly on our policy objectives of safe, sustainable and competitive aviation sector;

  • Firstly–the progress we have made regarding our infrastructure capacity improvements as well as our aviation safety record and that of the Continent.  
  • Secondly – I'll speak briefly on the challenges regarding the implementation of the Yamoussoukro Decision (YD). 
  • Finally, I do want to touch on skills and leadership gap and its prospects for sustainable growth.

Infrastructure Capacity

But first, let me begin by saying that South Africa's aviation sector has long demonstrated its resilience and flexibility in the face of multiple challenges. It has shown that it is both competitive and willing to embrace innovation.  And literally hundreds of thousands of jobs depend on the economic impetus that our aviation sector brings in its wake. This is despite the fact that in 1994, at the advent of our democracy, we inherited a transport system that was suffering from lack of investment.

But our strong Aviation Policy framework has made our Aviation sector generate billions of rand of output each year and continues to provide a gateway to the global marketplace. But the very same success also presented us with a series of key policy challenges such as; how to address air travel population growth.  And above all, how best to expand our Global role.

It is for this reason that the Aviation sector has been a permanent item on the agenda of our Government.  We have in the recent past years delivered a clear strategic direction for the Aviation sector.

Through our Airports Development Plan we embarked on an obvious need for extra capacity and infrastructure at our Airports. Over the past 6 years, we invested over 30 billion rand in Airports development.  And all of this came at a zero cost to the taxpayer - a fact often forgotten.

As South Africa we pride ourselves with ten successful and busy airports. Our airport network, especially OR Tambo, King Shaka and Cape International Airports provide direct links to more than 200 international destinations and deliver over 10000 flights every year  to most of the world's greatest commercial centres including North and South America, Europe and Africa.

Air travel in South Africa has grown above 10% per year over the past six years, due largely to the proliferation of low-cost airlines following the deregulation of the industry in the early Nineties and the increased volume of international traffic flowing into the country.

This can be evidenced by the fact that, in 1993, fewer than 12 international airlines flew into South Africa. However, this number increased to 20 in around 1995 and, today, more than 100 international airlines fly into the country on a regular basis.

In terms of passenger growth, between 1994 and 2000, the rate of domestic growth was pinned at 7, 5% compared to the global rate of 3%.  Similarly, while global international traffic grew at an average of 7% during this period, South Africa experienced an international passenger growth rate of approximately 8, 5% and as it can be seen in recent figures passenger growth has now surpassed the 10 percent mark per annum.       

In 2014 alone, ACSA handled 34 million departing passengers and of that amount 19 million was from the OR Tambo International Airport.

While billions have been spent on Airports upgrade, it is also a fact that in not so distant future, some of our airports will approach capacity and are likely to be full around 2020-30.

It is against this background that our policy is not only dealing with   challenges of today. We are also grappling with the plans for the future. As much as we cannot leave the future generations with a fiscal deficit, neither should we leave them with an infrastructure deficit.

We are therefore leading a policy debate regarding our capacity and connectivity needs over the years and decades to come. We are embarking on a process to decide what the solution would be and are scoping policy framework for a sustainable future for aviation. The policy framework requires an objective, thorough and evidence based analysis of our connectivity needs and how best to meet them in a sustainable way.

Reflecting on the Safety & Security Record of SA and the Continent

Let me turn briefly to our aviation safety and security issues. Nobody in this room would disagree that safety and security must be paramount in everything we do. We should always be reminded that all developments in this industry must be subject to the highest safety and security standards.

Quite frankly, it is an obvious matter that aviation safety has become a serious concern, a concern that is justifiable given the growth and complexity of the aviation industry.

While aviation appears to be safe, we must bear in mind that flying is inherently unsafe, and we must therefore make it safe. Deliberate measures and concerted efforts must be made to ensure that civil aviation is always a safe experience.

For a number of years now, South Africa has implemented a robust safety and security regulatory regime and much has been done to implement key critical ICAO provisions. All our major ACSA airports have impressive compliant airport safety and security plans which are regulated by SACAA.

The civil aviation community in South Africa has continued its compliance with current aviation safety policies within the framework of ICAO standards and recommended practices. These have also been measured against the results of the ICAO Universal Safety Oversight Audits. We however are wary of complacency, and shall continue to do our outmost best to beat our own safety records.

Despite some progress, it remains an unfortunate fact that the picture for Africa still does not look good on safety matters. Urgent measures need to be taken if we want to win the confidence of the rest of the world. To this end I have instructed the SACAA to provide technical assistance to countries especially with significant safety concerns and to date SACAA is offering assistance to about 10 African countries with the majority in SADC.

The International Civil Aviation Organisation (ICAO), the International Air Transport Association (IATA) and our own organisations, AFRAA and AFCAC, have assisted African member states to implement a number of international initiatives around safety in the air and security in the aviation sector generally.

In doing so, these bodies have been hard at work to provide assistance and encouragement. All of us are indeed grateful for the hard work that they have put into these efforts. The strength of South Africa's air transport sector is well known and highly regarded, and it is this reputation that has thrust us into an active leadership role on the continent and beyond.

Africa must make sure that it continues to work tirelessly to make the aviation sector as safe and secure as possible.

This is more so because air transportation continues to be a primary means of communicating with remote areas. And the traditional air corridors across the continent to Europe and further east and west are becoming busier and busier. More areas are beginning to enjoy sufficient traffic movements to become classified as new air corridors.

Our biggest challenges as Africa must therefore be our focus on the state of air navigation systems, airspace management and control, adequate and secure airport infrastructure and ground-based navigation aids, including proper and safe exclusion areas for people and animals around runways, taxiways, aprons as well as the existence of accurate navigation maps and data about the state of airports and landing strips. These measures done correctly will ensure safety of our skies.

The sale of older generation aircraft to some operators in Africa is indeed another risk factor in our airspace. Whilst many of these aircraft still have many, many years of service ahead of them, it is quite clear that we should be concerned about far too many of them.

We need to urgently develop an African air transport programme with a strong element of safety and security in the air transport sector. We simply cannot allow safety and security issues to undermine confidence in our air transport systems.

I strongly believe that the only way for us to stay ahead is collaboration and cooperation-sometimes even integration-between countries and within countries.  This would require Africa to pool and share resources and existing capacities, where necessary acquire expertise from other States outside the continent.  We need to foster technological innovation to improve the ability to combat challenges in the security system. We need to harmonise the security requirements and put adequate legislation in place.  We also need to attract the right calibre of staff in sufficient numbers and develop the human resources that will give the Continent an ability to adapt rapidly to changing circumstances.

Implementation of the Yamoussoukro Decision

This brings me to my second point. While the aviation industry gives the country and the Continent the global connectivity it needs to cement our place at the heart of a global economy. We need to ensure that our key role is maintained, and that our global competitiveness is not undermined. But that requires a proactive approach to three things; the implementation of the YD, the improvement of Africa's safety record as well as a robust security regime.

Distinguished guests, the implementation of the YD is not only important for the growth of the aviation sector, but more so for the growth of Africa's economies.  You will recall that this DECISION committed 44 signatory countries to deregulating air services and to open regional air markets to transnational competition. But unfortunately, this process has been very slow.

There are very few YDs that have been signed among African States, whilst there is a huge appetite to sign with other Continents further afield. And it is here where the challenges we face are perhaps the greatest. Africa must first link with its own African neighbouring Countries before it can forge links with the foreign Countries. As South Africa we believe that the Continent needs to urgently overcome this challenge for the betterment of our economies.

Skills and Leadership Gap

Programme director, I should not lose sight of why we are here today. And this brings me to my third and final point today, the need for stronger leadership and skills within the SA Aviation Sector. This sector continues to be the biggest casualty of brain drain. According to ICAO, the issue of human capital remains a serious concern. There is currently a shortage in technical skills and  issues of training, investing in human capital and to supplement the shortfall of over 200,000 pilots and about 400,000 maintenance employees remains critical.

The scenario is equally bleak with respect to the skills development in the rest of African Continent – where the industry is relatively under developed and characterised by weak and fragmented airlines that are faced with the common challenges such as; under-capitalisation, difficulty in attracting finance for equipment purchases, narrow route networks, ageing aircraft, growing insufficiency of qualified aviation personnel and socio-economic challenges. The situation is exacerbated by the consistent loss of skilled and qualified manpower to other regions particularly the Middle East and Asia Pacific - whose industries are rapidly expanding. Collectively, these challenges have stripped the aviation industry's competitive edge in Africa.

The focus of this Forum is quite pertinent and timely as it gives fresh impetus to our undertaking of harnessing aviation transformation - which requires our collective efforts. It is with delight to note that against this backdrop Boeing's recent forecast study on global trends, there is ray of hope for aviation industry in Africa. It is predicted that airline fleet expansion around the world will drive an exponential increase in demand for pilots and mechanics over the next 20 years. The projected demand for continents Africa stands at 17 000 pilots 19 000 mechanics. 

Such challenges do need strong leadership because it is essential to the sustainable development of the aviation industry. And it is here where co-operation with our partners is paramount. This we believe will ensure that aviation becomes part of the solution to the transport challenges of the 21st century, rather than merely seen as part of the growing problem.

For South Africa we therefore deem this US initiative to be very crucial.  The international nature of the aviation industry means we must tackle issues of leadership and skills in collaboration with our partners further afield. 

Let me point out that, the South African Civil Aviation Authority (SACAA) released audited statistics on licensed personnel last year. The audit indicated that South Africa has a total of 27 858 active aviation personnel.

The cursory observation suggests that whilst it is understood that the aviation industry has to significantly transform, the transformation agenda has been fraught with challenges. This is evidenced, for example, by the fact that only 4% of previously disadvantaged individuals (PDIs) account for the cockpit and the engineering crews.

In addition, we have also been inundated with sponsorship requests from pilots with low flying hours to attain Commercial Pilot Licenses (CPLs). This reality is testimony to the fact that there is a significant number of PDIs at varying levels of aviation training streams. However, it would seem that the aviation industry is indifferent to nurturing and developing their talents.

To address this contextual reality, we have developed a program that seeks to enhance equitable participation of PDIs through mobilization of resources currently located within the aviation industry. We have also undertaken to canvass the Transport Education and Training Authority (TETA) Aerospace Chamber to become a sponsor of choice for funding the development of critical skills amongst PDIs in line with the National Skills Development Strategy.  We have solicited broader support from the aviation industry stakeholders as partners, coupled with our on-going endeavours to encourage learners to enter the aviation industry.

We have also established the Aviation Industry Transformation Forum, otherwise known as Letsema - “Letsema” is a Sotho word that describes the coming together of a village or community in a traditional setting upon being requested by an individual to come and assist in whatever he or she wants to undertake. SACAA has also been instructed by my office to facilitate the development of a National Aviation Transformation Strategy which is geared to systematically address the transformation challenges. It is a known fact that at this stage the aviation industry is dominated by a generation of individuals over the age of 40. Furthermore, as the industry grows, we can expect a significantly larger challenge for the industry to resource skilled professionals, due to the growing demand for air travel and a generation of retiring pilots. This is even more of a reason to gear ourselves up with training skilled professionals who can meet the demand for specialised jobs in the aviation industry in future.

Programme Director, we are very grateful to the United States for having inviting us last year to various USTDA-sponsored workshops and training programmes aimed at empowering South African Aviation Professionals with respect to various aspects of aviation.

Furthermore, Programme Director before I conclude, allow me to reflect a bit on how far we have collaborated with the USTDA on developmental projects.

In 2012, the United States Trade and Development Agency (USTDA) provided a $758,000 (R5.7 million) Airside Capacity Enhancement Grant to the ATNS to fund a feasibility study to evaluate the technical, financial, environmental, and other critical aspects involved in a proposed airside capacity enhancement project at South Africa's three major international airports.

The objective of the Feasibility Study was to provide the ATNS and ACSA with analysis and recommendations that will support decision-making with regard to the utilization of advanced technologies and procedural improvements to reduce delays and increase the efficiency and safety of air traffic movements at Cape Town, King Shaka and O.R Tambo International Airports.

ATNS and ACSA established a team of Senior Officials and Specialists and Airport Planners to participate in the project. The team was exposed to all facets of the study, as well as active participation in all local activities. This was concluded by the incorporation of two specialists from South Africa that participated in the final study report preparation in Washington with the main consultancy team. The main study did not have a specific formal training component, but did focus on local capacity building with hands - on experimental exposure in order to equip ATNS resources to conduct such studies in the future. The project was concluded on 14 May 2013, with the presentation of the final study results to the key stakeholders of the South African Aviation Community with the findings positively received by the representatives from the Air Traffic Management Community. It was then agreed that ATNS and ACSA will review and analyse all proposed interventions and present industry with a prioritized plan to be included in both the ATNS and ACSA short term capacity improved initiatives.

In addition, the USTDA launched the US – South Africa Aviation Partnership to support the development of human capacity resources necessary to successfully develop South Africa's aviation sector and to foster closer professional and commercial relationships with the U.S. government and U.S aviation companies.

The USTDA also approved $1 million in funding for training programmes that will support the growth of safe, reliable aviation services in South Africa. Training programmes will be carried out by representatives from the U.S. aviation industry, including U.S aviation training institutions and U.S. companies.

Training will take place in either the United States or South Africa. Specific areas to be covered during the training programs are expected to include, but not limited to:

  • executive / leadership training;
  • maintenance;
  • repairs and overhaul training;
  • air traffic / communications, navigation and surveillance training;
  • airport fire, rescue, and emergency preparedness and response training;
  • aviation safety and security training; and
  • basic skills training / aviation sector immersion programs.

Programme Director, a good number of South Africans have been trained both in the US and South Africa. The last batch will be trained this year in May with the focus being on women. Our focus will continue to be on women. But South Africa needs management and technical staff, Accident investigators, designated examiners and grade 3 instructors. We also have a challenge of low time pilots, and funding is essential. Our transformation agenda is far from over. We shall continue to use cooperation and collaboration with our partners such as the USA and USTDA to advance our training agenda.

In Conclusion Programme Director, what this means for us is that strong partnerships are crucial if we are to grow our aviation industry. Our success story in the infrastructure development and the aviation safety record is the indication of our seriousness in this regard.  We however do believe that the Continent needs to do more to ensure the implementation of the YD and in the process ensure that the standards of aviation safety and security are high on the agenda.

The issues of skills and leadership development are of paramount importance as there can never be development if these lack. The way forward is to work alongside each other – across airport operators and airlines, across Governments and local regions, and across various Continents.

And I'm sure that with the ingenuity, skill and energy we have at our disposal, we can work together to find the best route towards a sustainable aviation industry that we all want to see for the future.

I've said a mouthful, but with those words I wish you fruitful deliberations and looking forward to your recommendations.

I thank you.

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