General assembly of African Airlines Association: Kenyan airline among four African airlines making profits in their operations

Outgoing AFRAA Secretary General Dr Elijah Chingosho

A Kenyan airline was cited at the 49th Annual General Assembly of African Airlines Association (AFRAA) in Kigali, Rwanda among four African airlines that have been making profits in their operations.

Astral Aviation, a cargo carrier joined Africa’s largest airline, Ethiopian, Air Mauritius and Royal Air Maroc outside the loss making bracket where most of the cont9inent’s airlines belong.

The rest that include  giants Kenya Airways, Egypt Air and South African Airways among others incurred a combined loss of US$100 million in 2006, said outgoing AFRAA Secretary General Dr Elijah Chingosho who forecast a similar outcome for 2017.

Dr Chingosho said Government interference and corruption were key factors in the decline alongside high industry costs whereby the price of jet fuel in some stations on the continent was as high as two times the world average.

Besides, said Dr Chingosho, passenger charges ranged from US$40 to US$120 in many African stations compared to the global average of US $25.

“This puts African aviation at a huge competitive disadvantage that calls for a policy shift from governments treating air transport as a preserve for the rich as opposed to a means of mass transport that is a major contributor to social development,” said Dr Chingosho.

He said the blockage by some African countries of funds paid as fare to airlines contributed to the non-profitability syndrome and cited Angola,, Nigeria and Sudan among countries suffering from oil and other commodity price slump that necessitates blockage.

Dr Chingosho commended Egypt for clearing all funds due to airlines early this year and hailed efforts by Nigeria to clear outstanding amounts as the country realizes positive economic and social contributions of air transport.

He said profitability was key to success in the aviation industry and measures to achieve it included the opening up of African skies to African airlines to enable efficient movement of people and goods and the easing of visa regulations to allow citizens from other African countries to obtain the document at the point of entry.

Dr Chingosho said the opening of African skies as recommended in the Yamoussoukro decision of 1999 and the relaxation of inter African visa requirements would spur the development of African aviation that currently accounts for less than 3% of global traffic.

He praised the launch of African Passport at the 27th African Union summit in Kigali in July 2016 as a move in the right direction.

The General Assembly was officially opened by Rwanda Prime Minister Dr Anastase Munekezi on behalf of President Paul Kagame. He announced that Rwanda was building a new international airport to be ready in 2018.

The Acting Chief executive Officer of RwandAir Mr Chance Ndagano who has been Chairman of AFRAA for the last one said the future of African aviation industry was bright despite numerous challenges and stiff competition from better established carriers from the Middle East and the West.

Royal Air Maroc was chosen to host the 50th Annual General Assembly in Rabat.