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41st AFRAA AGA: A Tonic For An Industry In Crisis
By Monday Ukoha


(Front row) His Excellency Armando Emilio Guebuza, Mozambique President (5th from right); Mr. Paulo Zucula, Mozambique Transport Minister (6th from right); Mr. Jose Ricardo Viegas, immediate-past President, AFRAA (4th from right); Mr Christian Folly-Kossi, out-going Secretary General, AFRAA (7th from right); Mr. Lance Brogden, VP, Africa, IATA (1st left), dignitaries, airlines CEOs and distinguished participants at the 41st AFRAA AGA in MaputoRecently, airline executives from across Africa and the leadership of the African Airlines Association (AFRAA) gathered in Maputo, the capital city of Mozambique. Foremost on their minds was to articulate strategies to assist African airlines succeed in challenging times such as the one the industry is currently navigating. In addition, the organization was to elect executives to run its affairs for the 2009 / 2010 fiscal year as well as appoint a new Secretary General to replace Mr. Christian Folly-Kossi.

However, at the Conference, it did appear that the airlines themselves were on trial regarding their inability to cooperate with each other leading to their persistent small size and the poor flight connectivity among African states. Most often it is better to fly to Europe and connect to contiguous capital cities in Africa rather than doing same from Africa. A journey from Lagos to Niamey in Niger just north of Nigeria, which is about 90 minutes by air, has flight options as far removed as through Dakar in Senegal, on to Mali and then Niamey. This scenario is rife for several city pairs across Africa, but this could have been mitigated by cooperation among African airlines. Examples of airlines’ cooperation and mergers as those between Air France and KLM and more recently between Iberia and British Airways, to a greater extent, boost the confidence of proponents of airline alliance in Africa on the need for such cooperation. On the flip side, David Tokoph, Chairman of AFRAA Executive Committee argues that there has been a lot of cooperation between African airlines citing examples of his airline to buttress this fact. Nevertheless, the panel on Cooperation amongst airlines, chaired by Publisher, Aviation & Allied Business Journal, Capt. Edward Boyo, was confronted with an army of reasons why there is little cooperation amongst African airlines.

The AGA, which was officially opened by the Presidnet of Mozambique, His Excellency Armando Emilio Guebuza, also had presentations on how airlines in Africa can navigate through the recession. Ato Girma Wake, in a presentation titled, “Thriving in crisis: The experience of an African intercontinental carrier”, advises airlines management not to panic stressing rather that they build flexibility into their operations. Ato Girma advises airlines against “losing customers’ trust by cutting corners such as cancellation of flights and reducing passengers amenities” to customers. It was deemed important that airlines should find ways to increase load factor on long-haul flights during recession and be ready to work with carriers to exchange traffic in areas where your own capacity or service is not adequate. And management should keep an eye on revenue, cost and load factor and be ready with a stand-by plan.

L-R: Capt. Dapo Olumide, CEO, Nigerian Eagle Airlines seals a partnership deal with Ato Girma Wake for their airlines, as Mr. Jose Ricardo Viegas, Chairman of LAM Mozambique, applauds at the sidelines of the 41st AFRAA AGA in MaputoIn a report on the state of the industry, the Secretary General of African Airlines Association, Mr. Folly-Kossi highlights that AFRAA member airlines have continued with their fleet modernization programmes with over 207 aircraft on firm orders with major manufacturers. According to the Secretary General, though Africa was not immune to the drop in passenger and freight numbers fueled by the world economic crisis, airlines in Africa fared better than other regions. Traffic dropped 4% year-on-year from 40 million passengers in 2007 to 38 million in 2008 while freight drop predated 2007. Though IATA projected a 500 million USD loss for African airlines in 2009, the Secretary General’s report notes in part, “...despite these unflattering global results on the continent, there are nevertheless some profitable airlines in Africa. These include Ethiopian Airlines, Royal Air Maroc, LAM Mozambique Airlines, Air Seychelles, South African Express and Precision Air. Other carriers such as Kenya Airways, South African Airways and Air Mauritius made some hedging losses otherwise their operating results were sound and in fact Air Mauritius made a profit despite that.” The problem, according to the report, remains with smaller carriers.

The AGA called on African Governments to continue their opposition to any unilateral imposition of environmental charges on international air transport, while the AU, AFCAC and Regional Economic Communities (RECs) were invited to work together and establish a common African position relating to the European Union’s Emission Trading Scheme (EU ETS). African airlines wishing to submit their emission plan to the EU were, however, urged to do so under protest. On the vexed issue of brain-drain, the AGA agreed to call on African governments to put in place national policies and regulations that encourage retention of existing professional manpower in the aviation sector and facilitate the return of those in the diaspora. The AGA urged: “African governments, the AU, AFCAC and member airlines and other stakeholders to work together to implement the recommendations of the conference on Brain Drain in African aviation including: the creation of one, single, comprehensive database comprising all aviation education and training centers and aviation professionals within Africa and in the diaspora; “the standardization, harmonization and rationalization of all aviation education and training and the designation of Regional Centers of excellence; “the establishment of secure and transparent African Aviation Manpower Development Fund; and“the intensification of cooperation by aviation training centers in Africa as well as partnerships and strategic joint ventures with aviation centers of excellence around the world.”

A highlight of the AGA was the appointment of Mr. Nick Fadugba, Managing Director of African Aviation Services, as the new Secretary General of AFRAA, whose term of office would commence when Mr. Folly-Kossi’s tenure ends in early 2010. Mr. Girma Wake was elected President of AFRAA while Mr. David Tokoph, President, InterAir South Africa was elected Chairman of the Executive Committee. Mr. Abderahman Berthé, Chief Executive of Air Mali, was elected 1st Chairman of the Executive Committee for the year 2010 and Capt. Dapo Olumide, Chief Executive of Nigerian Eagle Airline was elected 2nd Vice Chairman for the year 2010.

Awards were presented to H. E. Edouard Kodjovi Kodjo, former Prime Minister of Togo in the Distinguished Service category; and Mr. Jose Ricardo Viegas, immediate-past President of AFRAA, was bestowed with the Individual Achievement Award at the Awards ceremony. The Airline of the Year Award was clinched by Ethiopian Airlines, while South African Express was named the Regional Airline of the Year. Airport Of The Year went to Airports Company South Africa, and Air Navigation Service Provider Of The Year Award was given to ATNS. For his contributions to AFRAA, Mr. Terrence Naicker of TAAG Angola was awarded the Meritorious Service Award. As if to give impetus to the drive for more cooperation amongst African airlines, Nigerian Eagle Airlines and Ethiopian Airlines signed a codeshare agreement on the sidelines of the AGA.

L-R: Mr. Steve Duley, Sales Director, Southern Africa, SITA; Mr. Getaneh Desta, RVP, CSBU, Africa, SITA; Mr. Assane Oueddo, VP, Regions CSBU, SITA; Mr. Christian Folly-Kossi, out-going AFRAA Secretary General; Mrs Marie Folly-Kossi; and Mr. Sam Munda, Sales Director, Sub-Saharan Africa, SITA during the presentation of a gift to Folly-Kossi by SITA at the 41st AFRAA AGA in MaputoIndeed, the 41st AFRAA AGA was well-attended giving signs of an industry that is in search of strategies for self-improvement. No doubt, there is need for more cooperation amongst African airlines. Many within the industry have warned that, in their present state, only a few airlines will survive in Africa without cooperation amidst increasing competition from mega carriers from Europe and the current onslaught from the Middle East and North American airlines.

Definitely, there has been some collaboration but the pace must be quickened to come up to speed with present industry imperatives.

 

End

 
 
 
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