Embraer, Brazil-based aircraft manufacturer, has demonstrated
its recognition that the air transport industry in Africa is an
important and growing market that needs greater attention. With a
population of more than 900 million and over 650 regional and
domestic city pairs on the continent, the air transport market in
Africa cannot be ignored. Embrarer's growing commitment to the
continent was underlined during the Airline Business Seminar held
recently in Nairobi and sponsored by the aircraft manufacturer.
African airlines face huge competition on intercontinental routes.
The African Airlines Association (AFRAA) states that
intercontinental capacity to and from Africa held by African
airlines currently stands at 36.40% compared to 63.60% by
non-African airlines. Even though the intra-Africa marketplace is
different, readily available connecting flights between some
regions are rare. One way that African airlines can increase
their competitive advantage on intercontinental routes may be to
establish a stronger intra-African network that will feed
passengers to gateway cities and facilitate better connections.
In order to achieve the feeding of
long-haul routes from the regions, African carriers need to make
the right choice of aircraft type. Embraer aircraft provide a good
option for airlines that have plans for short- to medium-haul
operations or strengthening their hub activities. As Dr. Bridget
Ssamula, Senior Lecturer at the University of Pretoria, puts it,
"the advantages of hubbing for routes with low passenger demand are
very apparent. A point-to-point airline cannot serve these routes
because the operating costs needed to meet the low demand make them
unprofitable."
Embraer's increasing presence on
the continent shows that there is growing acceptance of the
aircraft brand by African carriers. 38% of all flights in Africa is
adequate for Embraer's 70-120 seat capacity aircraft, showing that
operators have a ready market in Africa. Egyptair tops the list of
operators of the EJets in Africa with 12 E170 and 12 on order;
Kenya Airways operates 5 E170's and 3 E190's; while PertoAir has 3
E170's in operation, and Air Nigeria and LAM Mozambique have 2
E190's each in operation. This is in addition to other ERJ 135 and
ERJ 145 commercial Jets in operation across Africa. To ensure
flexibility, Embraer also has service center for the EMB145 and
EMB120 in Morocco; E-Jets service centre in Egypt and EMB120
service centre in South Africa. Cost of aircraft acquisition is
still a challenge to operators in Africa evidenced by the
preference for used aircraft by some operators on the
continent. Mr. Mathieu Duquesnoy, Vice President, Airline
Market Middle East & Africa, Embraer, says, in line with the
effort by the government of Brazil to support Africa, Embraer is
working on a link with the Brazilian Export Credit Agency, BNDES,
to assist African airline operators in the acquisition of Embraer
aircraft which may become an additional incentive for African
airlines to add the Embraer to their aircraft shopping list.
Because cost- and eco-efficiencies and comfort now matter a lot,
the newer EJets are even better for African domestic and regional
operators.