British oil and gas company BP has announced that it will be withdrawing from all of its aviation activities in South Africa, including refuelling planes at OR Tambo International Airport. This move has caused speculation among aviation industry experts and has raised questions about the reasons behind BP’s decision.
No Formal Explanation from BP
There has been no formal announcement from BP regarding the reasons for its decision to exit the aviation market in South Africa. When asked about it, the company only stated that the decision is “as a result of Air BP’s current global business strategy.”
However, it is worth noting that last year, two Russian planes were unable to receive fuel from major international fuel suppliers at OR Tambo International Airport in Johannesburg and Cape Town International Airport due to sanctions imposed on Russia.
BP Southern Africa’s spokesperson, Hamlet Morule, stated that “As part of good business practice, Air BP reviews its portfolio on a continuous basis. In light of its latest review, a decision was taken to exit all of BP’s aviation activities – as operator at airports, and direct supplier to airlines – in South Africa.”
Impact on Aviation Industry
The decision by BP to exit the aviation market in South Africa is expected to have an impact on the aviation industry, particularly at OR Tambo International Airport, which is the busiest airport in the country. BP has been a major supplier of aviation fuel in South Africa for several years, and the company’s exit is likely to create a void that will need to be filled by other suppliers.
It is unclear how the exit of BP will impact the country’s aviation industry in the long run, but experts believe that it may lead to an increase in the cost of aviation fuel, as well as a decrease in the quality of service offered to airlines.
BP’s Commitment to South Africa
Despite the decision to exit the aviation market in South Africa, BP has stated that it remains committed to the country and will continue to work with all stakeholders to ensure that customers and the country are not adversely affected by its exit from the aviation market.
BP has also confirmed that it has sent out communications advising its customers of its decision to cease aviation fuel activities at East London and George Airports on 31 March 2023. The company has already withdrawn from Cape Town International Airport effective 31 January 2023 and is currently serving notice to cease being a managing participant at OR Tambo International Airport, effective 1 May 2023. Communications have also been sent to customers to advise them of BP’s decision to cease aviation activities at OR Tambo and King Shaka International Airports on 30 April 2023.
BP’s decision to exit the aviation market in South Africa has caused concern in the industry, particularly at OR Tambo International Airport. The reasons behind BP’s decision are still unclear, but the company has stated that it remains committed to working with all stakeholders to ensure that customers and the country are not adversely affected by its exit from the aviation market.