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National Gazette No. 40847, 19 May 2017, Vol 623, Page 427
65.9Kb
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427 of 556
Gazette
National Gazettes
, No
40847
, from 19 May, 2017
Department
Transport
Notice
Page No. 97 of 180,
Notice No. 401,
White Paper on National Civil Aviation Policy 2017 » Department of Transport » Official publication for general Information
Preview / 427 of 556
STAATSKOERANT, 19 MEI 2017 No. 40847 427 Code-sharing South Africa currently has an interim policy for dealing with code-sharing. In practice, provision is made for code-sharing within the bilateral framework to ensure reciprocal benefits. Airlines then negotiate the commercial arrangements among themselves. In the domestic market, code-sharing is not commonly practised between domestic airlines, other than airlines within the same `stable' (e.g. SAA and Mango on the Cape Town - Durban; Cape Town - Bloemfontein; Cape Town - Port Elizabeth; and Johannesburg - George routes). This is probably due to the highly competitive nature of the deregulated domestic market. Code-sharing is permitted and widely practised by domestic airlines in commercial co-operation with foreign airlines. In these cases, the South African-based airline operates the service and the foreign airline shares this capacity (i.e., seats / capacity marketed under its own brand). The emerging trend of inter-modal code-sharing (e.g. between air and high-speed rail) is not yet evident in the South African market. Franchising Franchising occurs when one airline (the franchiser) grants another airline (the franchisee) a franchise, or right, to use elements of its corporate identity, such as livery and marketing symbols. This means that in a franchise, the airline supplying aircraft and staff (the franchisee) takes the risk of selling the seats, even though they are sold under the name of another airline (the franchiser). Unlike code - sharing which involves the rationalisation of equipment, franchising involves the use of intellectual property. Aircraft leasing There has been a growing increase in the practice of aircraft leasing in air transport, where a carrier rents an aircraft from another carrier or other entities to provide commercial air transport. Leases generally take the form of a "dry" lease (lease of aircraft without crew) or "wet" lease (lease of aircraft with crew). The practice of leasing may raise potential safety and economic issues in cases where the leased aircraft is registered in a different State from that of the operator. Global Alliances such as Star and OneWorld have emerged using these cooperative arrangements, and have introduced increased complexity and concerns about transparency. (b) Issue Certain co-operative arrangements involve more than simple marketing or operating issues, and therefore consumer and competition issues need to be addressed. Currently the South African industry lease-in as well as leases-out aircraft for use by domestic carriers and foreign-based carriers respectively. In both cases, responsibility for compliance with minimum safety standards needs to be ensured.
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