BP Southern Africa has announced that it will be exiting all of its aviation activities in South Africa as part of its latest business strategy review.
The decision will see BP withdraw as an operator at airports and direct supplier to airlines across the country.
The company has already communicated to its customers that it will cease aviation fuel activities at East London and George Airports on March 31, and has withdrawn from Cape Town International Airport, effective January 31.
Additionally, BP Southern Africa has decided to exit operations at OR Tambo International Airport and is currently serving notice to cease being a managing participant effective May 01.
The company has also communicated to its customers that it will cease aviation activities at OR Tambo and King Shaka International Airports on April 30.
Hamlet Morule, Head of Communications & External Affairs at bp Southern Africa, explained that the decision was made as part of good business practice and in line with the company’s global business strategy.
In this time of transition, BP is committed to working with all stakeholders to ensure that customers and the country are not adversely impacted by its exit from South Africa’s aviation market.
Although there has been no formal PR released by BP to explain the decision, aviation expert Phuthego Mojapele has suggested that the move may be related to a proposal put forward by the company in 2020 to take control of the entire supply in the South African market.
Mojapele stated that BP had leased facilities from the Airports Company South Africa (ACSA), which is the owner of the facilities they use. He believes that the decision to exit the market may be an opportunity for locals in the economy, which has been dominated by multinational companies.
It is currently unclear whether the decision is related to the fallout from the issue of refueling Russian aircraft in South Africa in 2022 due to sanctions on Russia.
The state stepped in and offered Russian aircraft refueling at the time. Neither ACSA nor BP has provided any further information on the matter.
Despite the uncertainty surrounding the reasons behind BP’s decision, the company’s commitment to ensuring a smooth transition for its customers and stakeholders is a positive sign. It remains to be seen how the South African aviation market will be impacted by the exit of a major player like BP and whether the move will indeed create opportunities for local players in the market.
