African airlines blame woes on poor politics

By Cyrus Kinyungu

African airlines have blamed politicians for the woes bedevilling the airline industry in the continent.

They accused politicians of doing little to help them thrive and compete with foreign carriers during the current global financial crisis.

African airlines chief executive officers attending the African Airlines Association (AFRAA) annual general assembly in Maputo, Mozambique, said politicians enter into pacts with foreign airlines without consulting the country’s civil aviation authority yet they seek to enforce the same through airlines.

"Leasing firms work with politicians and not airlines," said Ghana Airways CEO Ms Gifty Annan-Myers. "Woe unto you if you do not implement the agreement."

Myers said politicians hardly look into the airlines’ business plans when sign such agreements.

Arbitrary decisions

She urged politicians to consult local airlines and aviation industry when negotiating on issues that are likely to affect them.

"Politicians should not blindly pry into the airline business. The day this happens, there will be a great change in the business," said Mr Inati Ntshanga, the chief operating officer of South Africa Air.

Ntshanga noted that politicians also interfere with their countries civil aviations decisions, which negatively affects the airline business.

The CEOs heard that the continent had failed to fully implement the Yamoussoukro declaration, — meant to open the African airspace to African carriers.

"We have failed to unite. Middle East carriers have taken over our air space and that is why Africans should learn to trust one another," said Captain David Savvy of Air Seychelles.

African Civil Aviation Commission (AFCAC) president Mr Charles Wako urged Africa governments to fully implement the declaration to facilitate the integration of the African air transport system.

"Our airlines and indeed air transport system may collapse if the declaration is not implemented immediately," he warned.

He lamented at instances where one has to travel from African cities to Europe to get connections to other African cities.

"The declaration was intended to facilitate the liberalisation of access to air transport markets in Africa and to promote and protect the African air transport system," he noted.

While giving his annual report to the CEOs, Afraa secretary general Mr Christian Folly-Kossi called on African airlines to establish strategic partnerships, joint ventures or co-operation between the more resource-endowed carriers with their smaller counterparts. He said co-operations would ensure enhanced airline safety and security levels.

Folly-Kossi also said blacklisting of some African airlines by some European countries has adversely affected the image of the continent.

"African airlines have presented a united voice to the European Union highlighting the unfairness of the procedures used against certain African carriers," he noted.

He contended that Africa’s aviation industry was also being hit by brain drain with highly trained and experienced professionals taking up jobs out of the continent.

Brain drain

In mitigation, Folly-Kossi said airlines should make use of the world class training facilities on the continent such as Kenya Airways’ Pride Centre, Ethiopia Airlines Training Academy, Egypt Air and Royal Air Maroc Training Centre.

He said Afraa was discussing with airlines on how to exploit opportunities created by the World Cup to be held in South Africa next year.

"Airlines have been discussing with each other how to take advantage of these opportunities," he said. "Airlines can collaborate through network planning, development and promotion of joint tour packages and product price bundling."

He noted that some airlines had planned to increase flight frequencies between their countries and Johannesburg next year.

Some airlines, he said, are concluding commercial agreements with South Africa-based airlines in preparation for the games.

In his report, Folly-Kossi noted that though the African airlines have been affected by the global recession, the effects have been more limited than in other continents.

"Africa has not witnessed significant reduction in passenger numbers and cargo uplifts as is the case elsewhere," he observed.

He said since 2003, the total passenger numbers to and from Africa have been steadily risen until 2007. Last year, there was a marginal drop of about four per cent as a result of the world economic recession.

He said the freight carried was equally affected by the recession.

"This year, the loss by the African airlines is estimated at $0.5 billion — a much smaller loss than in other regions," he said.

Among the African carriers that made profits include Ethiopian Airlines, Royal Air Maroc, Lam Mozambique Airlines, Air Seychelles, South African Express and Precision Air.