Airlines are spending as much as R1.5m on each flight to divert their aircraft for refuelling in Durban because of a continuing shortage of jet fuel at OR Tambo International.
The costs are compounded by Airports Company SA (Acsa), which is refusing to waive the extra landing and handling fees airlines accrued from landing at two airports.
An average passenger jet pays about R18,000 in landing and handling fees when it arrives at OR Tambo and again when it refuels in Durban. But Acsa CEO Mpumi Mpofu said on Monday the company doesn’t have the “instrument” to cancel landing fees for passenger jets arriving only to refuel at Durban.
Every additional hour for a flight schedule is calculated as “lost” revenue, while the time taken to divert to Durban for refuelling leads to an average airliner consuming about R750,000 in extra fuel.
Airlines such as Lufthansa fly empty jets to Durban, refuel and then return to OR Tambo to load passengers, which adds two hours to the schedule — costing roughly R1,5m.
At least one international airline which operates on the transport department-approved route of landing at OR Tambo, proceeding to Cape Town to refuel and then back to Johannesburg, has applied for permission to deviate from the route.
To save money, it wants to continue its flight from Cape Town rather than landing at OR Tambo again.
It is a matter of time before international operators are going to consider using alternative airports in neighbouring countries than OR Tambo as a more financially favourable option
— Joachim Vermooten, international aviation consultant
But aviation sources say the department has declined to accede to the request without giving reasons.
The Department of Transport did not respond to a request for comment.
“International operators are going to consider using alternative airports in neighbouring countries than OR Tambo as a more financially favourable option,” says Joachim Vermooten, an international aviation consultant.
It is therefore not only a short-term fuel problem but the longer-term reputation of both OR Tambo and SA as the preferred international gateway into Africa which is at stake.
“Amid the combination of international fuel uncertainty, fluctuating oil prices and very narrow profit margins, these airlines just want a practical and viable solution at the best price. And the industry has not even really started to feel the real effect of the war in Ukraine,” that has led to higher crude oil and fuel prices, Vermooten said.
Acsa announced some emergency measures on Monday to alleviate the shortage of jet fuel at OR Tambo, caused by severe damage to the Transnet freight rail system after the recent floods in KwaZulu-Natal, but many international airlines are still refuelling in Durban.
There aren’t shortages at any of the other airports, Acsa's Mpofu said this week.
The direct additional costs of the fuel shortage in Johannesburg would necessarily be reflected in the cost of flight tickets due to the slim profit margins most airlines are operating under, aviation specialists said.
George Mothema, CEO of the Board of Airline Representatives of SA (Barsa), said he has requested all the board’s members to calculate their losses due to the shortage.
“That would give us a figure to use in our own planning and further discussions with Acsa and other stakeholders in the industry,” he said. “The same state entities also need this figure when they are reviewing their existing emergency supply strategies.”
Airlines were forced to find alternatives when fuel supplies started running low at OR Tambo, and some refuelled in Windhoek, Namibia. Fourteen flights have also been cancelled since May 1 when the shortage struck.
Acsa held an emergency meeting on Monday with Barsa, the department of minerals & energy, the Central Energy Fund (CEF) and the SA Petroleum Industry Association. Mpofu said there is enough fuel at OR Tambo for 3.5 days, while the CEF agreed to maintain a buffer of 1.5-million litres.
But Mpofu conceded that current demand for fuel from domestic, regional and international aircraft exceeds supply.
According to aviation specialists, OR Tambo needs about 2.1-million litres a day to cover demand. That means the CEF buffer is less than a day's demand and airlines’ additional stop in Durban is set to continue.
The CEF’s said it will transport the first buffer supply by road or rail from Mozambique, but did not respond to a request for further comment.
Fuel companies in SA and abroad are protecting themselves against the oil price fluctuations by maintaining lower stock.
Mpofu said SA imports 70% of its jet fuel because Natref is the only refinery producing jet fuel.
“The disaster in KZN and dependency on the railway to get fuel to OR Tambo has been a lesson for Acsa, state departments, and the whole industry — a rethink is needed for the next time a calamity of whatever nature strikes,” said Barsa’s Mothema.
“Acsa has now shared some of its emergency planning and also said it is reviewing existing service providers. The aviation industry needs to be kept in the loop to know how the plan will be implemented.”
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