EMMA KELLY / PERTH
Lack of hard currency and ageing equipment see lifeline scheme proposed by AFRAA
African airlines are studying a plan to establish a fund to bail out ailing carriers on the continent. The move comes as a number of African airlines are finding it hard to compete with international carriers because of a lack of foreign currency and modern equipment.
The African Airlines Association (AFRAA), at its general assembly in Harare, Zimbabwe, on 16-17 December, approved the launch of a feasibility study for the Airline Funding Initiative for Africa to help threatened carriers. The association, which represents about 40 African carriers including Air Algerie, Air Botswana, Air Mauritius, Air Zimbabwe, EgyptAir, Kenya Airways, Libyan Arab Airlines, and South African Airways (SAA), also called on African governments to proceed with privatisation of their national carriers and for regional alliances to allow the carriers to compete effectively with global carriers.
AFRAA secretary-general Christian Folly-Kossi has told local media in Zimbabwe that organisations have been approached to fund the feasibility study and the association is appealing for support from African governments. "The aim is to establish an international fund for the development and consolidation of airlines in Africa," he says.
Several African carriers face severe financial difficulties, with Air Afrique, for example, collapsing in 2002. As well as a lack of development funds, many carriers have been dogged by poor management, dwindling traffic and political instability in their home markets.
The association is urging governments to privatise airlines to improve efficiency, but says priority should be given to African partners. "African airlines should no longer expect foreign carriers from Europe and elsewhere to bail them out as these airlines are also suffering severe difficulties," says Folly-Kossi. "We need our own solutions."
Before its collapse, Swissair owned 20% of SAA, but the latter has now begun a strategy of investment in and co-operation with other airlines on the continent. SAA is buying 49% of Air Tanzania and is seeking similar deals in West Africa.
AFRAA believes regional co-operation is the only solution for its members. "African international carriers should form regional alliance groups with their neighbouring regional airlines to build up and consolidate hubs at their main bases," says Folly-Kossi. Alliances should involve joint passenger services, facilities and maintenance services, he adds.
AFRAA is also calling on African governments to ratify and implement the Yamoussoukro agreement which is designed to lead to the free movement of goods and people throughout the continent. A lack of connections means passengers often have to return to Europe for flights to other African destinations.
Source: Flight International
