Munetsi, AFRAA director harps on merger, joint venture, alliance, others as realities for African airlines
African Airlines Association (AFRAA), director of government, legal and industry affairs, Aaron Munetsi has harped on the need for merger, joint venture, alliance, code share, SPA and interline as realities for African airlines.
Delivering a keynote address at the 16th Akwaaba African Travel Market, on ‘Impact of Airport Development and Airlines on Tourism Growth in Africa, Munetsi said it was wrong to say African Airline are not profitable
Munetsi admonished airline operators asking for a level playing field for everybody, saying that there is no level playing field as the airline must plan their strategies and execute them well.
The AFRAA director said African airline must embrace and foster change to survive.
He decried the situation where only 16 African countries have facilities for visa on arrival.
The ARAA director stated that the African Continental Free Trade Agreement (AfCFTA) will be a success when our airport infrastructure Is at its best.
Looking at the big picture, Munetsi stated that Safety and security are non negotiable.
Others include harmonised regulatory & policy framework, world class infrastructure, access to people intra-Africa, fees, taxes and charges – dog fight, Youth, women, diversity – people and Strategic cross sector cooperation.
The former regional general manager-Africa and Middle East, South Africa Airways, SAA, said the full implementation of the Single Africa Air Transport Market (SAATM) is on course as 31 countries have signed up with more ready to join.
He added that SAATM has come to stay and no African country should be left behind.
Munetsi described SAATM as the bedrock of the African free continental trade agreement (AfCTA).
He stressed the need to also harmonize airport charges in Africa.
Munetsi added that, “airports have different charges for the same aircraft, for the same crew. Airlines are losing money because they can’t operate to some airports. It is like a dog fight. Everybody who can charge an airline will charge them.”
The AFRAA director noted that airlines are catalyst to facilitating tourism.
According to him Africa cannot develop the tourism market without removing the barriers to free movement.
He disclosed that recent research indicated that one in every 10 jobs in Africa is tourism related.
In his words: “If we don’t facilitate tourism growth, it means we are starving jobs. If airports are killing airlines, they are killing our youths.”
He said Africa with 62 airlines, 817 aircraft and 49 airports airlifted 88m passengers in 2018, compared to the figures from Europe as France in 2018 alone 89.4m passengers.
“Despite the number of airports, how can we have 88m passengers? It means something is wrong somewhere. SAATM is set to change this,” Munetsi said.
The AFRAA director urged African countries to explore another way of making money other than charging fellow Africans visa fees.
He gave the numbers of African commercial aviation to include: Number of airlines: 62, Number of passengers: 88 million (2018), Number of aircraft: 817, Number of airports:419,
Munetsi observed that Service providers in the aviation sector are making it difficult for airlines in Africa to flourish due to prohibitive and excessive charges.
He tasked Africa to adopt a policy where the airports will own the airlines or the airline owns the airport or has a substantial stake in it.
He said with this, the airline can argument from the money it is making from the airport to remain in business.
Munetsi stated that airlines profit is very low as a result of charges, and taxes like landing and parking charges, enroute charges, Jet A1 and most critical the cost of aircraft lease.
Munetsi said the two most important components of aviation were the airlines and the airports and those were the elements to be brought to bear for success of the entire gamut
SAA, Emotions DMC Promote Destination Mauritius in Nigeria
African airlines experience 5.7% rise in demand for Nov. 2018
Zenith Bank emerges Nigeria’s best Bank for the 4th time in five years
AFCFTA: NANTA to promote intra African tourism trade