Apart from a few exceptions,
African Airlines are still playing a minor role when it comes to
air cargo. While the most important airports in Africa were
benefitting from a recent growth in cargo volumes most African
airlines show shrinking cargo volumes. Competitors from outside
Africa have dominated the market without serious opposition and are
the winners in this situation. Traffic forecasts foresee growth
figures of around 5% for African air cargo. So, the potential is
there, but many African carriers do not seem to be prepared to
compete for their market share.
The reasons are diverse: African
carriers are suffering from a lack of cargo capacity, taking
into consideration, that only 3% of the worldwide cargo relevant
fleet are based in Africa. Insufficient warehouse infrastructure is
leading to inefficient processes and lower quality in cargo
operation.
This is why forwarders prefer to fly their cargo on non-African
airlines. However, a simple but key reason seems to be the lack of
attention that is paid to air cargo as a source of income for an
airline. Assuming, that from each extra kilo of cargo flown in the
belly the operating margin is over-proportional, since only the
incremental cost applies, it is surprising, that so little effort
is made to gain these extra margins.
To benefit from the potential of
air cargo African airlines could start with some basic steps.
Cultivating cargo expertise under a focused cargo development
strategy could be the first step. A key to success is the
development of synergies for belly and freighter operation for
mixed carriers, as well as a suitable performance steering system.
Process and infrastructure improvement lead to an increase in
quality and efficiency. This strengthens competitiveness and helps
to build up a reputation among the freight forwarding
community.
Obviously there is no standard road
map an airline should follow. African airlines at various stages of
their cargo activities will have a different development focus.
Airlines that have little cargo
focus should start to explore their business potential and set up
the basics for future cargo development. Airlines that have a small
to medium cargo operation should define a sound cargo strategy and
optimize existing potentials through basic revenue steering
techniques.
Whereas airlines that are currently
the major market players should ensure the current set up provides
sufficient room to grow in the market so as not to lose out to the
competitors. Therefore, revenue management, network development and
operational quality should all be considered in their cargo
planning.
At whatever level an African
airline is positioned today, the potential that air cargo offers is
well worth closer observation and a dedicated effort.