African aviation punching well below its weight

The continent is punching
well below its weight in
terms of airline performance
and needs to adopt a
visionary approach to create
a self-sustaining aviation
industry in the region.
That’s the view of Chris
Zweigenthal, CEO of the
Airlines Association of
Southern Africa, who
delivered the keynote
address at the industry
body’s annual general
assembly in Namibia last
week.
The global airline
industry will generate a
US$39.4-billion profit
this year – having never
in its history performed
better – while Africa, with
a moderately improved
performance, will ref lect
profitability of US$300
million.
Achieving around
the breakeven band on
average, the continent is
not able to match the global
performance. “We can again
ask the question : do we just
battle along, accepting our
lot, or do we cast a vision for
a prosperous and positive
future?” said Zweigenthal.
He believes African
aviation is trapped in its
own bubble, trying to
deal with and resolve
its own parochial issues
just to survive.
“Concerns of the
past are still present,”
he said, “ranging
from the growth of
strong international
competition on
the continent,
to weak local
currencies
which
contribute
to higher
operating
costs, and
intense
competition
between
all airlines
whether
they be
state- or
privately
owned, all fighting
for market share and
profitability.”
In addition, many
regulatory and bureaucratic
constraints face the
industry. “These include very
restrictive visa regulations in
some states,
which are
hindering
growth and
development
of our
industry and
tourism,
causing jobs
to be shed
instead of
created. The
net result
is a stymying of broader
economic growth and the
desperately needed broader
spread of opportunity and
prosperity.”
He believes that to be
successful we need to learn
from the experiences of
other regions, like Asia,
Latin America and even the
EU who have made similar
journeys before us – to find
out what worked, what
didn’t, and to apply the
lessons learned in our region.
INSERT & CAPTION
Very restrictive visa
regulations in some states
are hindering growth.
– Chris Zweigenthal