Unlocking Africa’s airspace could be a multibillion-dollar opportunity

One of the fastest ways to fly from Nairobi, Kenya, to Marrakech, Morocco, is via Paris, France.

Despite being on the same continent, around 3,700 miles miles apart, the two destinations have no direct flights.

It’s not just these two metropolises: many of the continent’s capitals and largest cities have no direct flights, or very limited schedules, which often means travelers end up making multiple layovers, typically in Europe or the Middle East.

“The biggest challenge is market access, in the context of allowing airlines to move passengers freely in and out of the African cities without the restrictions that currently exist,” says Raphael Kuuchi, consulting director of government, legal and industry affairs at the African Airlines Association (AFRAA).

The continent’s aviation sector largely operates on bilateral air service agreements, contracts made between individual countries that restrict which airlines can operate specific routes.

Many groups, including AFRAA, are trying to move the continent toward a single aviation market, like the European Union (EU), which allows any EU airline to operate any route within the territory, and removes restrictions on operations like pricing and frequency, provided airports have slots available.

In addition to lack of connectivity, Africa’s aviation sector is plagued with high costs, infrastructure challenges, regulatory constraints and safety concerns, according to the International Air Transport Association (IATA). The region needs more investment in infrastructure, safety oversight and regional hubs: the African Development Bank estimates a $25 billion funding gap by 2040.

Africa’s aviation sector was estimated to support $75 billion in economic activity and 8.1 million jobs, according to the IATA. But the continent accounts for just 2% of air travelers worldwide — a huge opportunity for growth.

A 2021 report from the IATA predicts that liberalized markets could create more than half a million jobs in Africa, and add nearly $4 billion to its GDP.

“Africa is one of the fastest-growing markets when it comes to aviation,” says Kuuchi, adding that there are now coordinated efforts between organizations including the African Union, AFRAA and the African Civil Aviation Commission “to ensure that our citizens are able to move about much more freely and cost effectively.”

A slow take off

In Europe, flights within the continent account for two-thirds of routes, but in Africa, intra-continental flights make up just 21%.

Part of the problem is economies of scale, says Kirby Gordon, chief marketing officer for FlySafair, one of the continent’s leading low-cost carriers and the second largest by seat capacity.

“The reality is, air travel in Africa is still really, really, really tiny compared to the rest of the world,” says Gordon. “We’re the largest Boeing (737) operator in Africa, and we’ve got 37 aircraft — compared to Southwest, which is a portion of the North American market, and they’ve got, like, 800.”

FlySafair launched in South Africa 2014, and today has nine domestic and five international routes.

The five intra-African routes they’ve established are “well-trodden,” and align with major tourism spots, like Victoria Falls in Zimbabwe, or business hubs, like Windhoek, Namibia.

“When it comes to looking at intra-African travel, a number of routes can still be quite thin, they’re still sort of in a developmental phase,” says Gordon.

“Many of the city pairs in Africa, the daily average passenger throughput is below 100 seats,” says AFRAA’s Kuuchi. “If you have an airline operating on such a route, and the minimum size of your aircraft is probably a 737, which has over 120 seats, it might not be economically viable for you to operate that route.”

This low demand drives prices up, as do higher operational costs — including jet fuel prices, infrastructural inefficiencies and airport taxes, says Somas Appavou, IATA’s regional director for external affairs in Africa. While globally, airlines make around $7 per passenger, in Africa, it’s just $1, he says, adding: “This is basically what is not allowing aviation to have the proper take off in in Africa.”

Source: CNN

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