Common passport to lift earnings of African airlines

Airlines from Africa could increase their annual earnings by about 24 per cent if the proposed common passport for all citizens within African Union is introduced.

According to a recent study by Sabre Corporation, a US-based technology service provider to global travellers, airlines operating within African destinations will see their annual earnings per passenger rise by 24 per cent to $1,508 (Sh153,442).

Currently, earnings per individual traveller in Africa averages $1,149 (Sh116,913). Therefore the passport could become the magic wand to reverse the dwindling fortunes that have become a characteristic of a majority of African airlines.

The Skyward express airlines parked at Wilson Airport in Nairobi. Airlines from Africa could increase their annual earnings by about 24 per cent if the proposed common passport for all citizens within African Union is introduced. (PHOTO: PHILIP MWAKIO/ STANDARD)

The proposed pan-African passport will eliminate the need for visas and help open up African skies. Currently, just about 13 African states are open to all African citizens without advance visas, with many placing severe restrictions on travel.

As per AU's agenda 2063, the common passport is expected to be operational  in 2018. The International Air Transport Association (IATA) has held that high taxation and locked territories have made it hard for African airlines to succeed. Despite international airlines controlling 88 per cent of African airspace, Sabre Corporation Vice president for Europe, Middle East and Africa, Dino Gelmetti, believes there is room for growth.

"African airlines have a real opportunity to win the lion's share of bookings by addressing the pain points of travellers and going the extra mile to improve their experience," said Gelmetti.

In the research that covered four major economies in Africa— Kenya, South Africa, Egypt and Nigeria— the passengers interviewed and potential travellers expressed willingness to pay more for ancillary services while travelling.

While 84 per cent of respondents are willing to spend on ancillaries, one third said that they would actually spend more than $100 (Sh10,170). The most popular catch was Wi-Fi service followed by food and beverage.

From the current average of $90 (Sh9,157) that passengers are spending on ancillaries, those surveyed from Kenya said that they would be willing to spend extra $25 (Sh2,566) if services improve. Nigerian travellers, currently spending $99— the highest among the four economies— said  they could lift their spending to $113. South Africans and Nigerians are willing to spend an  additional $14 and $8 respectively.

In the past two years, about 24 per cent of the respondents had travelled by air. Nigeria had the highest air travellers (35 per cent) while Kenya had 15 per cent compared to South Africa's 13 per cent.

About a third of them expressed frustration about lack of flights to take them to the target destinations and the quoted fare changing before the final booking is made.

The findings of the research may warm the hearts of African airlines. IATA has already projected that combined, the African airlines will soak up a loss of $500 million (Sh50.8 billion) this year.