L  L  News & Industry Affairs / Africa

  L  How will Africa increase air cargo market share as recovery gears up?
July 18, 2022. Logistics Update Africa.

Current aviation market trends and data points suggest that aviation is slowly and steadily getting back to what it was pre-pandemic. Going forward, how will Africa’s air cargo industry deal with the headwinds and tailwinds it is experiencing?

The air cargo industry in Africa benefited from the strong demand for vaccines and other medical and humanitarian supplies needed to combat the Covid-19 pandemic which ravaged the aviation industry from early 2020. To enhance their capacity to meet the unusual demand, Africa's cargo airlines, namely Kenya Airways, Ethiopian Airlines, Astral Aviation as well as Allied Air and Egypt Air acquired converted cargo aircraft.
    One of the significant benefits of the Covid-19 to Africa was the opportunity for some African airlines to develop internal capacity for passenger-to-cargo aircraft conversion. Other regional airlines like Overland Airways in West Africa responded positively to the demand for the special flights. Roger Foster, CEO of Airlink, in South Africa, said his airline made use of belly hold to move cargo during the period.. Read more...

  L  African airlines will need to recruit 63,000 new workers, as the continent's aviation industry is set to hit $400 billion valuation by 2040  
May 25, 2022. Business Insider Africa

  • Africa's commercial aviation market is projected to hit a valuation of $400 billion by 2040.
  • Growth will be driven by factors such as increased trade, more travel agreements and a considerable increase in the region's middle class.
  • To meet the expected increase in air travel demand, African airlines will have to significantly increase their fleet size and workforce. 

African airlines will need to recruit some 63,000 new professionals (including pilots, technicians and cabin crew members) over the next twenty years in order to ensure optimal service delivery. 
    This is one of the key growth projections that were made about the continent's commercial aviation industry by Boeing, as contained in its recently released Commercial Market Outlook. Read more...

  L  African economic and air traffic growth surpasses global average
May 12, 2022. Freight News.

Tourism and intraregional trade will continue to be key growth sectors for Africa and drive GDP growth.

African airlines will require 1 100 new passenger and freight aircraft deliveries by 2040, according to the latest 2021 - 2040 Airbus Global Market Forecast (GMF). This will take the total fleet to 1 440 from a 2019 fleet baseline of 680 aircraft. 
    "During this period, the fleet in the region will transition to new-generation types such as the A220, A320neo family, A330neo and A350, bringing significant efficiency improvement and a corresponding reduction in carbon emissions per passenger," Airbus said in an official statement. 
    Airbus forecasts that the projected growth in the continent’s economy will push up air traffic to achieve a full recovery to 2019 levels between late 2023 and early 2025. 
    Air cargo is currently already operating at 9% above pre-crisis levels globally, and 23% above this level in Africa. Read more...

  L  Africa’s transport sector to strongly benefit from AfCFTA
February 11, 2022. EngineeringNews.co.za

The African Continental Free Trade Area (AfCFTA) is expected to increase intra-African trade in transport services by nearly 50% by 2030, the latest estimates by the UN Economic Commission for Africa (ECA) show. 

The estimates contained in the ‘Implications of the AfCFTA for demand for transport, infrastructure and services’ report indicate that, with AfCFTA in place, in absolute terms, more than 25% of intra-African trade gains in services would go to transport alone, and nearly 40% of the increase in Africa’s services production would be in transport. 
    “The AfCFTA is expected to significantly increase traffic flows on all transport modes, including road, rail, maritime and air, but such gains will only be optimised if the AfCFTA is accompanied by implementation of regional infrastructure projects,” says UN under-secretary-general and ECA executive secretary Vera Songwe. Read more...

  L  AFRAA’s 53rd AGA sets Roadmap for the Transformation and the Economic Development of Air Transport in Africa 
November 17, 2021. AFRAA News.

Air transport leaders and decision makers set a roadmap for transformation and the economic development of air transport in Africa at the 53rd AFRAA Annual General Assembly & Summit that has concluded today. The event was held under the patronage of the Government of Angola under the theme: “Flightpath to Africa’s resilient travel ecosystem.” Read more...

  L  Cover story: Tough times not yet over for African airlines
June 18, 2021. Rebecca Campbell for Engineering News & Mining Weekly.

Around the world, light is now visible at the end of the Covid-19 pandemic tunnel (although the distance to the end of the tunnel varies greatly from country to country).

One of the economic sectors that will be most relieved by this is the airline sector, and not least its African, Southern African and South African members. Even before the pandemic hit, many of the continent’s airlines were in financially weak situations, in large part as a result of heavy government charges and taxes, but also because of restricted access to markets within Africa and low load factors. Read more...

  L  African Airlines are finding ways to restart travel amid slow vaccine rollouts 
April 19, 2021. Mazuba Kapambwe, CN Traveller.

Airlines are getting creative when it comes to rebuilding flier confidence

Vaccine rollouts are well underway, with some countries already nearing benchmarks for so-called herd immunity and starting to reopen to travelers. Other regions of the world, however, have seen a more sluggish inoculation effort. But in those areas, travel providers such as airlines are coming up with other solutions to safely restart travel. 
    Across Africa, for instance, airlines are finding innovative ways to build flier confidence. The continent's air traffic decreased by 89 % in 2020 according to the IATA,  but nascent signs of a travel rebound are appearing. Read more...

  L  Is a pan African Airline network on the cards for the region?
October 14, 2021. Logistics Update Africa. 

After a challenging 18 months post the Covid pandemic, it looks like the African aviation industry may be looking at spreading its wings again and is set to revive itself and remerge stronger through mutual cooperation. 
   Taking a leaf out of the African Continental Free Trade Area (AfCFTA) and SAATM or the Single African Air Transport Market in place, both of which are aimed at the liberalisation of air transport in Africa and economic growth, Africa’s air carriers are now looking at forging mutually beneficial ties to boost intra-Africa air connectivity. Read more...

  L  Robust growth in air cargo demand on Asia-Africa trade lanes
June 8, 2021. Carin Smith, Fin24.

In April, demand increased 30.6% compared to the same month in 2019 - the strongest of all regions in the world.

Robust expansion on the Asia-Africa trade lanes contributed to strong growth in air cargo demand for African airlines, the International Air Transport Association (Iata) said on Tuesday.  
    In April, demand increased 30.6% compared to the same month in 2019 - the strongest of all regions in the world. It was also the fourth consecutive month of growth in air cargo demand in Africa at or above 25% compared to 2019; therefore, before the coronavirus pandemic hit the industry. Iata represents some 290 airlines comprising 82% of global air traffic. Read more...

  L  Achieving affordable air transport across Africa: AFRAA webinar
March 3, 2021. AFRAA news.

The African Aviation Industry Group (AAIG) held a high level webinar to deliberate on practical solutions for the reduction of high cost of air transport operations in Africa. Staged under the theme: Achieving Affordable Air Transport across Africa, stakeholders at the webinar agreed on a set of actions for implementation with defined timelines to achieve the goal of a sustainable African aviation industry...Read more...

  L  Covid-19 and the future of African airlines: Kenya Airways and Airlink CEOs share their views 
April 27, 2020. Jaco Maritz for How We Made it in Africa news.

The Covid-19 pandemic and subsequent travel restrictions have brought much of the global airline industry to a standstill. To find out how the pandemic is currently impacting African airlines and what the industry could look like after the crisis, London-based corporate network Invest Africa recently hosted a webinar that brought together several airline CEOs. Here is what we learnt from the discussion.

Many airlines are facing a cash crunch 
The precarious financial circumstances in which some African airlines find themselves was aptly highlighted when Kenya Airways CEO Allan Kilavuka apologised for joining the webinar late because he was locked in a call with the airline’s bankers. “The challenge that we are facing is…how do we conserve cash in the short run, and then how do we remain sustainable in the long run,” he said...Read the original article...

  L  IATA estimates passenger revenue to drop by $314 bn in 2020 
April 15, 2020. Logistics Update Africa.

The International Air Transport Association (IATA) released updated analysis showing that the Covid-19 crisis will see airline passenger revenues drop by $314 billion in 2020, a 55% decline compared to 2019. On March 24, IATA estimated $252 billion in lost revenues (-44% vs. 2019) in a scenario with severe travel restrictions lasting three months...Read the original article...

  L  African carriers record 6.2 per cent freight spike amid global slump 
April 14, 2020. Wole Oyebade, Guardian (Nigeria).

IATA insists on free movement of life-saving cargoes
Amid the global disruption in air movement, African airlines have sustained a positive air cargo volume and an increase in demand ahead of other regions. 
    The estimate for the month of February – the onset of the coronavirus pandemic in African countries – showed that African carriers posted the fastest growth of any region for the 12th consecutive month, with an increase in demand of 6.2% compared to the same period a year earlier. 
    Meanwhile, airline operators have urged governments to sustain a free movement network of cargoes across the global, given that medical supplies and other consumables are critical to survival and recovery... Read the original article...

  L  AU study: COVID-19 could cost Africa $500bn, damage tourism, aviation sectors 
April 20, 2020. Kingsley Ighobor for Vanguard.

Up to 20 million jobs in the formal and informal sectors in Africa could be lost because of COVID-19, according to a new study by the African Union. 
    Released in early April, the study found that foreign direct investment (FDI), tourism receipts and remittance flows will also suffer significant declines as the continent tackles the pandemic. Titled The Impact of Coronavirus on the African Economy, the study modelled two scenarios, each with equal chance of being realized. Under scenario one (realistic), the pandemic will be contained within five months, inflicting minimal damage; under scenario two, the pandemic will last for eight months and countries will be severely affected...Read the original article...

  L  Africa COVID-19 Round Up
March 30, 2020. Aviation & Allied Business Publication.

IATA: Industry Losses
Due to the COVID-19, the IATA says international bookings in Africa are down roughly 20% in March and April; domestic bookings have fallen by about 15% in March and 25% in April, according to the latest data. African airlines had lost US$4.4 billion in revenue as at 11 March 2020. Ticket refunds have increased by 75% in 2020 compared to the same period in 2019 (1 February – 11 March). IATA wants governments to support airlines to recover. 

African Airlines Association (AFRAA): Calls for Government support to African Airlines  
AFRAA urges African governments to consider the compensation of inevitable losses, the alleviation of exogenous operating costs, and the subsidization of the African airlines in a bid to assure the industry’s viability. AFRAA strongly recommends that African airlines engage their stakeholders to develop an all-inclusive proactive response strategy that addresses the adverse impact of the COVID-19 on their business to ensure airlines recover effectively to support key economic sectors.

Global Alliances: Oneworld, SkyTeam, Star Alliance call for extraordinary government support 
On behalf of their member airlines, the three global airline alliances oneworld®, SkyTeam and Star Alliance are jointly calling on governments and stakeholders to take action to alleviate the unprecedented challenges faced by the global airline industry amid the COVID-19 pandemic. Read the original article...