FlightCom — Edition 108 — September 2017

70

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Postal Address

E d' s n o te ...

T

HE International Air

Transport Association

(IATA) has presented a

compelling case for the

importance of aviation,

which every African leader

should have to see.

IATA originally published research done

in 2011 to determine the economic impact

of the African airline industry on economic

growth. They are now in the process of

refreshing those studies for the key regions

in Africa. In August we published a review of

the IATA report for South Africa. Now they

have completed their report for Nigeria and

are taking it on a roadshow for the Nigerian

government and aviation industry.

IATA’s message is simple but profoundly

important. It says that more jobs could be

created and additional economic growth

achieved in Nigeria if the nation used the

“transformative power of aviation as a

strategic pillar to further strengthen and

enhance its economic recovery and national

development.”

The latest report reveals that air transport

in Nigeria supports more than 650,800 jobs,

including tourism-related employment, while

contributing US$8.2 billion to the country’s

GDP. Over the next ten years, passenger

volumes are forecast to grow more than

7% annually, exceeding the global average

by a healthy margin. IATA points out that

“for Nigeria this means an additional 7.

million passengers will take to the sky every

year, creating a significant opportunity to

accelerate economic growth, boost prosperity

and support development.”

The sad reality is that Nigeria’s passenger

traffic has been in free fall. Oscar Onyema,

CEO of the Nigerian Stock Exchange, says

that from more than 15 million passengers in

2014, Nigerian air passenger traffic declined

to six million in 2016. He explained that the

past decade has seen the Nigerian aviation

industry experience numerous institutional

challenges, leading to the exit of many air

operators.

It is these institutional challenges that are

the undoing of the industry – and, as IATA

points out, in dragging down the industry, they

drag down the entire economy.

The industry is a delicate one. It is skills

and capital intensive and requires confidence

if the large investments it requires are to

be made. This is particularly true if there

is a competitive market with small margins

and thus small profits. And without decent

profits, there can be no reasonable return

on investment. So, it will just stay away.

Yet government across Africa just does not

seem to grasp this. It continually creates the

institutional challenges to which Onyema

refers, whether it’s the onerous Part 93

regulations besetting South African corporate

aviation, or subsidies of national flag carriers

which make it impossible for private sector

carriers to compete.

Without an effective bizjet industry,

investors are not even going to come to a

country to see if it is a good destination for

money. And without competition from private

sector carriers there will be no growth in the

African airline industry. So, trade connectivity

will suffer and tourism will be inhibited

by high prices and shoddy and dangerous

airlines.

Africa keeps shooting itself in the foot.

Airline Ops - Mike Gough 6

GIB Events Calendar 10

Bush Pilot - Hugh Pryor 12

Defence Notes - Darren Olivier 18

Airlines - Keith Mwanalushi 24

News - SAAF C-130BZ 32

Companies - Jetcraft 33

West African Airlines & AMOs 34

Face to Face - Ethiopian Airlines 38

Subscriptions 33

Gaborone International Airshow 42

Flyfofa Charter Directory 44

AME Doctor’s Listing 45

Back Pages 47

September 2017

EDITION 108

Editor

Guy Leitch