Although the growing African air sector carries great potential and opportunity, it does not come without risk, says Magda Engelbrecht, managing director of Cortac Aviation. “As the demand for air travel rises in emerging economies, original equipment manufacturers (OEM) and airlines – along with their maintenance and service teams – are having to establish new connections with local suppliers on the ground. “In an industry that is relentless in its pursuit of cost reduction, this poses something of a threat. “While working with local suppliers has significant cost benefits, it could also expose companies to risks such as intellectual property violations, delays and quality issues.” Considering that airlines depend on only a handful of suppliers for some aircraft parts, such as composite components and wing skins, they could find themselves with few options in the case of failures or disruptions, said Engelbrecht. “This risk can be somewhat mitigated by working closely with the supplier to understand the risk and detect potential disruptions before they develop into full-scale disasters.” Another risk, she said, was the volatility in the geopolitical and economic environments on the continent that often left airlines facing uncertainty. “Also, given that many aerospace and defence (A&D) companies operate globally, a large portion of their revenue streams is earned in a variety of currencies, making them vulnerable to fluctuations and currency exchange rates.” This remains one of Africa’s biggest challenges as fluctuation in commodity prices can lead to issues along the supply chain.