Aviation experts have identified poor policy implementation, high charges and taxes, poor corporate governance and government’s indifference as factors responsible for poor growth of air transport in Africa.
The former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Richard Aisuebeogun who was the lead speaker at the second Akwaaba African Market Travel and Tourism Conference said these factors retard air transport growth in the continent.
The conference, which was held in Lagos, recently was attended by industry experts from Nigeria and Africa, including past CEOs of airlines, airports, travel and tourism organisations and others in the industry.
Aisuebeogun said that many failed airlines both privately and government owned litter many airports in Africa and identified these airlines to include, Air Gabon, Sierra National Airline, Air Afrique, Nigerian Airways Limited, Cameroon Airlines, Chanchagi, ADC Airlines, Bellview Airlines, Air Zimbabwe and others.
“A report of survey carried out in May, 2016 says over the past 12 years nearly 37 airlines were launched in Africa, and almost all of them had failed – 25 of which are from Nigeria. Today only about 12 Africa Airlines have inter-continental operations. The more we realize that airlines are not a luxury but a necessity in our remote villages and hub cities, the more we can change our thinking and make sustained efforts to ensure that airlines are supported and developed for the accelerated development of our economies and improvement of our livelihoods,” Aisuebeogun said.
He noted that the potential of aviation in Africa is under-utilized, which means that there are huge opportunities for the sustainable airlines to thrive, but for the region to realise these latent possibilities, aviation – particularly, commercial air transport – must be prioritized by government.
He disclosed that today, air transport is recognized as an important element in the achievement of the United Nation’s Vision 2030 Sustainable Development Goals which seeks to improve individual livelihoods in all corners of the globe, adding that air transport is also vital to achieving the African Union’s (AU) Agenda 2063, which seeks to transform Africa’s economy from its current largely underdeveloped state to hugely develop economies.
According to him, Africa has the potential to be a significant force in aviation on the back of robust economic growth forecasts, with Africa having among the fastest growing economies worldwide, but African airlines carry l.3 percent of global air cargo.
“These small proportions contributed by Africa to global air cargo indicate that Africa has a huge potential to grow,” he said.
He also observed that the performance of the African aviation industry is lagging behind those of the rest of the world at less than 3 percent of global revenue passenger miles (RPKs).
“The growth is heavily constrained by the high industry costs, inadequate infrastructure at several airports, slow implementation of the Yamoussoukro Decision (liberalization of Africa’s airspace), lack of a single traffic rights negotiating body with respect to third parties like the EU. Nonetheless, demand for air transport has increased steadily over the past years with passenger numbers and freight traffic growing significantly,” Aisuebeogun said.
Speaking at the event, the former Managing Director of Air Nigeria, Captain Dapo Olumide said there is lack of growth of airlines in Africa because most of the airlines do not have corporate governance, there are inferences from family members, relations and friends, adding that an airline need to have the right equipment for the routes it operates.
“We don’t have a maintenance culture. The business plans are all wrong. The operators have romantic ideas of everything and the banks don’t have in-house experts to advise it on extending credit facility to airlines,” Olumide said.
