New domestic aviation draft BBBEE proposals workable, if government does its part
The recently released Draft Domestic Aviation Sector B-BBEE Scorecards and Amendments could be implemented, but only if government does its part. This point was made by Airlines Association of Southern Africa (AASA) CEO Aaron Munetsi in his initial response to the release of the document. He was responding to a query from Engineering News Online.
Munetsi sits on the Broad-Based Black Economic Empowerment (BBBEE) Council as the representative of AASA. The council has to ensure that the local aviation industry is fairly represented. And AASA is continually consulting its members, for their input.
“The industry acknowledges the importance of BBBEE as the starting point for the required transformation in the aviation sector,” he assured. “There is a commitment to ensure participation from all sectors of the population within the aviation industry.”
The BBBEE targets had to be realistic and achievable. They had to incentivise airlines and indeed the whole industry. The industry’s progress had to be recognised, and this required the clarification of the transformation targets.
“The targets were a matter of compromise by both government and airlines,” he pointed out. “There is an understanding that the targets will be reviewed and/or revised either downwards or upwards depending on the performance of the sector. AASA is satisfied that the targets are achievable on condition that the government provides an enabling environment by reducing costs.”
The new draft made clear that the ownership targets applied only to South African-domiciled airlines.
“Workforce transformation 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,” he affirmed. “Transformation should encompass all employee levels, not just in the flight deck or above the wing.”
He highlighted that technical training for, and employment of, previously disadvantaged people were essential parts of transformation. As were other forms of compliance with BBBEE, such as supplier and enterprise development programmes, whereby businesses owned and operated by previously disadvantaged communities received supply and services contracts from airlines.
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