A file photo of planes at the Jomo Kenyatta International Airport in Nairobi. /Jack Owuor Various aviation industry players in Africa have called for consolidation of the airlines to boost the continent’s performance in air traffic.
According to the African Airlines Association (AFRAA), Africa represents less than 3 per cent of global air traffic.
This is attributed to the continent having the lowest level of market consolidation compared to the other regions in the globe.
“A crucial element in the success of the African airlines is consolidation and collaboration. The engagement of States, airlines and all the relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa.” said Abdérahmane Berthé – AFRAA Secretary General.
Kenya Airways CEO Allan Kilavuka said consolidation and collaboration are essential ingredients for resilience and sustainable business operations of airlines.
Kilavuka said the ripple effect of strengthened collaboration amongst airlines will be an increase in the industry’s contribution to the sustainable development of Africa.
They spoke during a high level workshop on African airlines consolidation where they discussed the reasons for airline consolidation, the challenges and benefits of consolidation and measures for action by industry stakeholders.
The industry leaders recommended the implementation of appropriate corporate governance structure to fasten consolidation.
They also called for uniform implementation of harmonized regulations and the establishment of an enabling working relationship between regulators, airlines and Regional Economic Communities (RECs).
“We require to meet the challenges of the “New Normal”, a reset in our thinking and approach. We require new business models, meaningful innovations in operations, adaptive management open to change, a growing true synergistic relationship between airlines and other relevant stakeholders,” said Catrin Drawer – Head of Market Africa, Lufthansa Consulting.