By: Girma Wake

Chief executive
Ethiopian Airlines 2004-2010

 

"More than ever, African states should work towards integrating Africa's air transport market"

 

Girma Wake
 © Billypix

Despite the fact that a great number of African States succeeded to become independent and to create their own national airlines in the early 1960s, African airlines have faced numerous challenges in formulating and maintaining a safe, efficient air traffic system, mainly due to the inability of African governments to make strategic investments to support the industry.

Up until very recently, only a few countries in sub-Saharan Africa managed to have flag carriers that are relatively healthy in economic terms. Several companies have been liquidated in past decades, while others are facing serious financial difficulties and are in need of restructuring.

Consequently, the air transport industry in the continent is still characterised by a poorly developed network or schedule and the relatively high cost of air travel.

Very recently, however, some African states are showing the lead in supporting the aviation industry. Senegal is building a new airport near Dakar; Republic of Congo has added runways and terminals at Brazzaville and Pointe Noire, and South Africa has installed an advanced air traffic control system. In Eastern Africa, Tanzania, Uganda and Burundi have taken steps to revitalise their national carriers. As part of a fleet modernisation effort, 156 aircraft are currently on order by African airlines.

Despite these efforts, however, in the coming years there is a possibility that most African countries might lose their national carriers to foreign carriers who are operating with large modern fleets and are dominating the African skies.

The African airspace is becoming a major transport market due to new emerging economic opportunities in the continent and attraction from foreign carriers. Africa has recently posted a significant increase in the list of destinations served by foreign and local carriers.

During the years 2001 to 2003, international aviation passenger traffic grew 3.3% in Africa, while the rest of the world grew by only 0.5%. Since 2003, air transportation increased from 5.3% to 5.7% annually and this is projected to continue. In fact, with continuing rapid growth in the continent's oil industry, while total international traffic worldwide picked up at a 6% rate in May 2008, Africa's traffic increased by 15%, second only to the Middle East.

Nevertheless, African airlines, with the exception of a few, are not benefiting from the new opportunity. About 75% of the passenger traffic from Africa is currently carried by non-African airlines. Some of the foreign airlines are rumoured to be highly subsidised by their states.

FOREIGN INVASION

Foreign dominance of African skies is bound to increase in the future because of the implementation of a single airspace concept within the EU; the franchising policy actively promoted by European carriers; foreign carriers buying into African airlines and the aggressive penetration of Gulf carriers into the continent's market.

To make things worse, African airlines are also losing their most experienced and qualified human resources, such as pilots, maintenance personnel, cabin crew, management staff and air traffic controllers to airlines from the Gulf and Asia. It seems that African airlines invest heavily in education and training for employees, only to see their workforce flee for opportunities abroad.

In unity lies strength. In order to withstand this threat, African countries have no alternative other than cooperating among themselves. Now more than ever, African states should work towards integrating the African air transport market and creating a conducive policy environment for African states to work smoothly on a common, level field within African airspace and beyond.

 

COVER STORY: APRIL 2009

AB April cover

Wake, who retires at the close of 2010, has a history of setting bold growth targets for his airline. In this interview he outlined plans to create a "$10 billion aviation Group" by 2025.

 

FROM THE ARCHIVES

Wake, speaking in 2009: "Over the next seven or eight years, we are planning to double what we have today in terms of revenue, passengers, fleet and profit. When we set ourselves the 2010 target [in 1996], everyone said it was too ambitious. Now they have realised it can be achieved."

 

 

Source: Airline Business