{{Africa is said to be the continent with the second largest population but only accounts for less than four per cent of global air traffic.}}
Poor infrastructure, stalled liberalisation, high taxes and fuel surcharges are reasons for such a small share of the aviation market for decades.
The continent’s aviation industry is beset by a wide range of negatives that impede growth, including strong state protectionism, a lack of desire to liberalise, a poor safety record stemming from ageing aircraft, weak finances and inadequate regulatory supervision, underdeveloped infrastructure across most of the continent and a lack of professional expertise.
Added to this mix is widespread corruption and an overall lack of funds available for investment.
In global terms its international markets are still notably small.
The highest ranking, Egypt, for example, would feature at 18th position among European countries for numbers of international seats.
Nigeria, with its over 160 million population, ranks 26th, just behind Latvia. Zambia, which ranked just below this Top 20 list, has substantial potential, as its resources appear increasingly attractive to foreign investors.
There are also one or two marked exceptions to this less than rosy picture. Ethiopian Airlines is one of the region’s most successful and profitable airlines (assisted by some protective regulation); Kenya Airways too has been a benchmark for African airline operations.
And the renewed interest of private investment in airlines suggests that, where vacuums exist, opportunities are opening up.
Africa is as a result poised to become the next emerging growth story as the world turns to the continent’s bountiful resources, from minerals to oil and water.
The emerging middle class, with its higher propensity to travel, will inevitably have an increasingly substantial role in regional aviation as will the upswing in local and international tourism traffic.
China in particular has taken a leading role in investing in Africa’s vast natural resources, which in turn has attracted investors from other regions. China is highly dependent on sub-Saharan Africa for its supply of cobalt, manganese, chromium and timber.
The continent also struggles with a lack of routes linking cities, a lack of regular flights flying them and a lack of profitable airlines competing.
In Nigeria for instances, high taxes, high cost of JET A1 and lack of infrastructure have done incalculable damage to airline business. Lack of good business model and unfavourable government policy has also not helped the situation.
Secretary General of African Airlines Association (AFRAA), the umbrella body for the continent’s carrier, Dr. Elijah Chingosho, told The Guardian recently that high taxes and charges on airlines and passengers were holding back airline industry growth and making it uncompetitive.
According to him, “Airport charges of between $60 and $80 in Africa were well above the world average. The excessive airport taxes, charges and fees being levied on airlines and passengers, in addition to the generally high cost of operations, is making African airlines less competitive compared to their foreign counterparts”.
He however called for airports to set charges in consultation with airlines.
Just recently, the Federal Government saw the need to assist the carriers with import duty exemption. Its implementation would greatly help the operators to overcome the enormous amount spent to bring in aircraft and spare parts.
Not a few commended the government for this initiative, which could greatly assist the carriers to focus on other areas of their operations.
With little improvement on airports terminals, obsolete navigation equipment, which has remained almost the same for more than two decades, is worrisome.
A source who works with one of the leading airlines and who spoke to The Guardian on condition of anonymity stated that the need for improved air travel across the continent was clear to many in the industry, where there are glaring gaps between growing economic centres.
He noted that a flight between Cape Town in South Africa and Lagos, Nigeria, the second fastest growing city in Africa, should ordinarily take six hours.
“Yet with no direct flights, the cheapest option via the Middle East takes up to 18 hours while the faster, yet more expensive routes within Africa still take eight hours”.
Often governments have been blamed for protecting their national carriers and refusing to deregulate the industry and open up the skies to greater competition. While South Africa has a number of liberalisation agreements, its government agrees that more needs to be done
There are number of constraints in different nations, with regard to policies, with regards to the regulatory environment.
More pathetic is the fact that there are more foreign airlines flying in Africa than African airlines, just as there is the need to foster greater cooperation between these African airlines.
It is not all gloom for the continent. The quite role of the global alliance is also making itself felt as Star Alliance, Skyteam and Oneworld see value in supporting a stable and potentially expansive local airline capability for their member airlines to feed into and from. This is a constantly shifting equation.
As global alliances gather momentum, radiating from their core partners in Europe and North America, each region is experiencing the influence that the groupings can bring.
Africa is no exception, but the lack of fully viable carriers offers something of a challenge in finding local partners beyond the small number already accounted for.
{NgrGuardian}
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