Catch 22 holds back growth on Africa air routes

There needs to be a demand before capacity on specific routes can be created and, for the most part, Africa is still dependent on its own economic growth to justify an increase in flights in the region. This is according to talks held at an Aviation Festival Africa at the Sandton Convention Centre last week.

“It is expensive to open new routes in Africa. Volumes are lacking and, at the end of the day, opening a new route is about the economy of scale. Growth in the economy and demand for routes can happen naturally over a longer period of time, or by someone subsidising route projects,” says Erik Venter, CEO of Comair.

The conference discussed how opening a new route could be time-consuming, with requirements from the Civil Aviation Authority to conduct initial assessments taking months.  Government regulations are another factor to consider. “Although regulations help with setting up new routes, they can also hinder the process in many African countries,” says Venter.

Further to this, some airports in Africa do not have adequate infrastructure. It is a “vicious circle” where more parking bays are needed to accommodate more flights, but there is a lack of passengers to justify the need for a larger fleet, according to Venter.

It was however highlighted that the African market was expanding rapidly. Venter noted, in particular, the growth potential of the West African market. Although expansion can be noticed, another fundamental problem is the small percentage of a middle-class in Africa.

Venter highlighted the need for investment in new routes in Africa. “Nigeria is a massive market that is under-served. If they could get their market right and operations in order, Nigeria would be a potential investment,” said Venter.

Nigeria, as an example, does not have any low-cost carrier and Venter refers to it as a “blatant opportunity that no one is taking”. He adds that operating in Nigeria can’t be compared with operations in the rest of Africa. “There are challenges in access to facilities, fraud, fuel capacity not available, as well as unfavourable weather conditions such as fog.”
Source: etnw