Rhetoric on the need for cooperation between airlines in Africa has never been in short supply, but action has usually been less forthcoming.
Yet with a number of new foreign backed carriers expanding intra-African operations, the language used is much stronger and more urgent than before.
Most of the continent's carriers do not view intercontinental operations as a major area for expansion due to competition from better capitalised foreign competitors. Instead it is their under-served home markets which are thought to present the best growth opportunities, a fact that has not gone unnoticed in Asia, Europe or the Middle East.
Speaking at Embraer's Airline Business Seminar in Maputo, AFRAA's commercial director, Raphael Kuuchi said: "Opportunity lies in intra-African [routes] and domestic regions, these have the greatest potential for growth and competition from international competitors is less."
He cites Ghanaian start-up Africa World Airlines, a joint venture co-financed by China's Hainan Airlines parent HNA Group as an example of how foreign carriers will make inroads into area. He says that after the start-up has built up a regional network "it won't be long before they put a big aircraft to China" and called on Africa's airlines to "develop a strategy to counteract this".
Highlighting the extent of the threat Kuuchi said that "17 'non-African' airlines have fifth freedom rights within Africa compared to 11 African carriers". Kuuchi says the continent cannot prevent the influx of foreign carriers flying into Africa, but "we need to remain competitive and that means cooperation and liberalisation of the market".
Nick Fadugba of African Aviation Services consultancy also believes the role of the region's carrier's in the continent's airline market is set to diminish. While foreign carriers have seen routes to Africa provide significant growth, 2012 has seen widespread staff cuts at the likes of Kenya Airways and Royal Air Maroc, while 1Time and Air Nigeria have ceased operations.
"They are being squeezed on the long-haul side and on domestic and regional side by newcomers with established foreign partners," he says. As an example he explains that 98% of Nigerian traffic is carried by non-African carriers. "African consumers want service and if African airlines can't provide it then they will look elsewhere," he says.
Criticising the inertia of the African airline industry he adds: "We've been talking about spares pools in Africa for decades, but nothing has been achieved...we're not seeing any progress on a buying partnership. I can't see why they're not coming together to pool spare parts and training."
SA Express chief executive Inati Ntshanga also agrees that "the time for talk shows is over" and that airlines in Africa must cooperate in order to maintain their relevance, or even survive.
He calls for an alliance of African airlines to assist each other by pooling resources, codesharing and interlining. "We survive by partnering...If we don't head to this we're heading for stormy skies," he says.
Ntshanga adds that the Yamoussoukro Declaration - the blueprint for liberalising African airspace dating back well over a decade - will not by itself bring about the required changes without the proactive involvement of carriers. He adds that while ministers are "good at creating policies", the execution must be spearheaded by airlines. "We have the capacity to influence what goes into the policies and strategies of countries," he says. "Yamoussoukro not is going to solve anything. Like-minded executives sitting together can make this happen."
Talking about the action his own airline is taking to further cooperation between African airlines, Ntshanga says it is looking to begin a partnership with a west African airline through an equity purchase and hopes to make an announcement in Spring 2013.
Consultant Stephan Heinz of Seabury also believes partnerships are a good way to grow for Africa's airlines and in removing government interference, but is pragmatic over who they should partner with. He says that the challenges facing Africa's carriers are immense so it is worthwhile entering partnership and "if that's with Hainan Airlines so be it". Heinz also says that in order to best exploit expansion opportunities, African airlines should "forget alliances and cherry pick the partners that suit you best".
Source: Air Transport Intelligence news
