12 LUA JAN - FEB 2018
report
in sEARCh oF
pROFItAbIlIty
There is a stronger forecast for Africa's economic growth which
is expected to support the continent's aviation sector. However,
African airlines are seeking sustainable profitability amidst
growth expectations, Roy Ezzee reports.W
hen President Paul Kagame
of Rwanda opened the
African Airlines Association’s
(AFRAA) 49th Annual
General Assembly (AGA) in Kigali,
Rwanda, early November 2017, it became
clearer how resolute Rwanda has become
to strengthen its growing popularity as
the new events, business and tourism
capital in East Africa, if not the whole
continent. But what was not clear was
when African airlines would exit the realm
of asphyxiating losses, fragmented efforts
and limited cooperation, collaboration
and coordination that has been the bane of
these airlines for decades now.
But President Kagame’s words, spoken
through Edouard Ngirente, the Prime
Minister of Rwanda, on the need for
stronger cooperation and commitment to
the implementation of Single African AirTransport Market (SAATM), is unarguably
a strong motivation to airlines and African
States alike to strive to improve the air
transport ecosystem in Africa.
Even as the AGA focused on strategies
to achieve profitability for African airlines,
these airlines have much work to do to
turn around their own fortunes. The
industry looks to a year of another N
million losses for African airlines in 2018,
amidst “stronger forecast for Africa’s
economic growth which will support
demand growth of 8 percent.”
Currently, few African airlines are
making profit. According to AFRAA, these
include Astral Aviation, Air Mauritius,
Ethiopian Airlines and Royal Air Maroc.
Airlines like Air Tanzania, and Camair-Co
say they have experienced improvements
following a period of losses in their
operations. Specifically, Ernest Dikoum,African airlines
must have
shared vision
in developing
connectivity
within Africa. This
indeed requires a
lot of discipline
to achieve.
AtO gIRmA WAkE
RWAndAIR