Low-cost carriers are confronting Africa’s national airlines, but are facing legislative barriers against being able to operate.
The new airlines, with “no frills” services designed to undercut larger carriers, follow the same pattern as Europe’s cut-price airlines, which have cut Europe’s average fares to about a quarter of those in Africa.
But African governments are busy trying to protect state-owned airlines, such as Kenya Airways, SAA and Ethiopian Airlines, against carriers who offer fares about 40% lower than the flag carriers.
One part of this protective policy, according to Airwise News, is that Africa’s open skies agreement was proposed in 1987, but has never got any nearer implementation since then.
The publication also stressed that many African national airlines are showing major losses, like Kenya Air; being bankrupted, like Nigerian Airways; or saved from demise by government rescues, like SAA.
However, said the International Air Transport Association (Iata), if governments were more pro-competitive it could add US$1.3 billion a year in revenue to African economies and create 155 000 jobs.
Sources: Airwise News and Reuters
