News & Industry Affairs/Africa news

The intra-Africa connectivity debate

December 11, 2017. AASA Africa news. AASA addresses the intra-Africa connectivity and Single African Air Transport Markets (SAATM) debate, and presents a variety of views and articles, to encourage debate, including: an article by Rwanda's New Times urging the African continent to sign-up to the SAATM initiative to stimulate Africa's economy; a Q&A with Alexandre de Juniac IATA's Director General and CEO around the question: What is wrong with African airlines and why can’t the majority of them break even, much less make a profit?IATA's outlook for Africa in 2018;  and a thought-provoking article by Richard Li of the NTU-SBF Centre for African Studies, presenting his case for the aviation industry being a catalyst for growth in Africa.

  • Slow implementation of African single aviation market irk experts
    December 11, 2017. New Times. African governments have been urged to implement the deal to open up the aviation market on the continent agreed on 18 years ago. The third ministerial working group meeting on the Single African Air Transport Markets (SAATM) expressed concern over the delay by the majority of African Union (AU) member states to implement the 1999 Yamoussoukro Decision towards the establishment of SAATM by the end of this year...air transport is indispensable for tourism, and enhancing air connectivity can help raise productivity by encouraging investment and innovation, thereby improving business operations and efficiency...liberalising the air transport market will lead to increased air services and route competition, resulting in lower fares.
    Read the full article here. 
    African governments need to rectify the situation in the aviation industry, by gradually opening their skies to other African carriers. While they can still focus on building their own national carriers, they can slowly liberalise this sector. Not only can aviation then be an economic catalyst by providing a strong impetus to the overall economy, but it will also build the links and strengthen the bonds among African countries. 
    Richard Li, Singapore-based Partner with Steel Advisory Partners

  • What is wrong with African airlines and how can they be fixed?
    December 8, 2017. New Era, Namibia. The African aviation industry is projected to make a loss of US$100 million in 2017 and the International Air Transport Association (IATA) expects the trend to continue into 2018 as airlines on the continent are forecast to lose another US$100 million in 2018. These dismal figures are expected as the rest of the world’s aviation industry is set to make a net profit of over US$38 billion in 2018. What is wrong with African airlines and why can’t the majority of them break even, much less make a profit? New Era’s Senior Business Reporter, Edgar Brandt, together with journalists from across the continent, sat down with Alexandre de Juniac (AdJ), IATA’s Director General and CEO, at the organisation’s offices in Geneva, Switzerland, to get some answers. 
    Read the full article here.  

  • Strong Airline Profitability Continues in 2018 - Africa to grow by 8%
    December 5, 2017. IATA news. The International Air Transport Association (IATA) forecasts global industry net profit to rise to $38.4 billion in 2018, an improvement from the $34.5 billion expected net profit in 2017 (revised from a $31.4 billion forecast in June)...the wider economic situation is only improving slowly in Africa, which is hampering the financial performance of its airlines. While traffic is growing, passenger load factors for African airlines are just over 70% which is over 10 percentage points lower than the industry average. With high fixed costs this low utilization makes it very difficult to make a profit. Stronger economic growth will help in 2018, but the continent’s governments need a concerted effort to further liberalize to promote growth of intra-Africa connectivity...
    Read the full article here. 

    Download the December/Year-End 2017 Economic performance of the airline industry document here.

  • Aviation as a catalyst for growth in Africa
    November 7, 2017. Richard Li for the NTU-SBF Centre for African Studies. Africa has one of the largest populations in the world, yet the content's aviation industry is tiny, representing only 2% of the global market. Though there are challenges that lie ahead, the industry has huge potential for future growth in Africa...Foreign investors are less likely to travel to distant and not easily accessible places, even if there are great opportunities. As a result, aviation in Africa should be considered a priority sector by the respective African governments so that it can boost the economic development of their countries...
    Read the full article here.

Back to Africa news >