Despite the presence of foreign airlines, the African market still offers significant growth potential. This is especially true for airlines that are looking to expand reach and increase options to and from the continent, Wole Shadare writes
Foreign airlines view the African aviation market as a lucrative opportunity. While airlines in Europe and the Middle East have a strong presence, airlines around the world recognize the growth potential of the region. This is driven by factors such as increased demand for travel to Africa and relatively low invasion of African aviation in certain major markets.
Expanding presence
Expansion of presence International airlines have expanded their presence in Africa by increasing regional capabilities and taking advantage of the continent's economic potential, population growth and growing demand for air travel.
The expansion reflects increased demand for air travel, improved connectivity and continued investment in infrastructure and airline collaboration, enhancing Africa's position as a major market for global aviation. Airline capacity refers to the total number of seats available on airline flights over a specific period is an important factor in the operation of an airline. It affects profitability, ticket prices and overall efficiency.
The 2024 OAG takeoff report provides insight into trends in aviation capacity for 2023 and 2024, analyzing growth and recovery. The report examines national and international capabilities, flight frequency, (available seat kilometres), and route operations and provides a year-over-year comparison.
The OAG report found that major airlines are increasing their capacity in Africa and showing strengthening their markets. Investments in airport infrastructure, airline partnerships and policy initiatives such as Single African Air Transport Market (SAATM) have led to increased competition, reduced fares and improved connectivity, which has benefited airlines such as Emirates, Qatar and Turkish Airlines.
Air travel is becoming more and more common in Africa as many African economies are developing at a rapid pace. Over the past 20 years, demand for flight seats on the continent has jumped from under 500,000 before 2000 to 150 million seats per year.
Foreign airlines are actually increasing their presence and investment in the African aviation market. This is often referred to as the “scramble for Africa” due to increased competition and opportunities. Airlines in Europe and the Middle East are expanding their reach, but North American carriers have little footprint despite their overall global capabilities.
European and Middle Eastern airlines have established strong regional presences, such as Emirates, Turkish Airlines and Qatar Airways, and are actively expanding their African networks.
Turkish airlines, for example, are actively pursuing expansion in Africa, including the addition of new destinations such as Aswan (Egypt), Halgesa (Somaliland), and Port Sudan (Sudan). There is also competition between foreign airlines targeting routes and market shares between foreign and African airlines.
According to a World Bank study, part of the reason for Africa's inadequate status is its long-term refusal to open the sky by not implementing the decision of Yamoussoukro. It was adopted in 1988 by an African nation aimed at librallizing African airspace. Some African Airlines have expressed concern about the control of foreign airlines on African Airlines markets, particularly regional routes.
Strong case
They argue that foreign airlines, particularly airlines from Europe and the Middle East, often manage an unbalanced share of the market at the expense of airlines in Africa. This advantage is seen to hamper the growth and sustainability of African Aviation, affecting profitability and effective competitive ability.
Foreign airlines are reported to manage a significant portion of the African aviation market, estimated to be over 80%. This means that African Airlines only controls about 20% of the continent's aviation transport. This is a situation that is a source of concern for aviation experts and policymakers.
Several factors contribute to this domination, including the lack of well-developed domestic airlines in many African countries, limited liberalization of air transport in Africa, the challenges faced by African aviation in terms of infrastructure, operational efficiency and financial resources.
The advantage of foreign airlines can hamper the growth and development of African Airlines, potentially leading to loss of revenue, limited routes and reduced opportunities for local aviation operations.
This advantage is seen to hamper the growth and sustainability of African Aviation, affecting profitability and effective competitive ability. Continental airlines are powerless and can offer little or no resistance as many of them can match them in terms of funding, structure and strategy.
imbalance
African airlines face fierce competition with established international airlines with more resources and global networks. Despite concerns, the Single African Air Transport Market (SAATM) is seen as a potential catalyst for growth and development of the African Aviation sector, creating a more unified and competitive market.
Experts' Views
Experts who spoke with Aviation Metric pointed out that of the $10 billion profits made by foreign airlines in Africa, only 20% of that amount remains in dominant African Airlines, including Ethiopian Airlines, Egypt Airlines, Kenya Airways, Airmalok, Rwandaa, South African Airlines and Uganda.
Among other airlines that come and go from the continent, they are airlines.
In African conspiracy and interstate competition have also hampered the full implementation of SAATM and the development of a robust intra-African aviation market. African Airlines need to be competitive through strategic partnerships, modernising the fleet, and improving operational efficiency.
No one believes that the African government needs to implement policies that support the growth of local airlines. Overcoming the challenges associated with implementing SAATM and promoting greater cooperation between African countries is essential to fully realising this potential. Consistent and supportive aviation policies are essential to promote a stable and predictable environment for airlines to operate and invest in.
What is equally concerning is the disclosure that these carriers contribute only 2% to the global aviation market. The airline operator who spoke to our correspondent on condition of anonymity described the issue as self-harm, and the regional government's refusal to liberalize the free entry and exit air for African Airlines has a memorable effect on the sector.
He said: “African Airlines takes breadcrumbs from the market they should manage. But how can they control the market when they don't have good connectivity even within Africa?”
“They are bleeding just like they don't have the resources to compete with, for example, Emirates, British Airways, Delta, United Airlines, Luftansa, Qatar, Air France and many other mega carriers,” the source added.
The last line
Ironically, the main beneficiaries of Africa's recent air traffic growth are non-African airlines, adding that air transport is essential to Africa's economic progress.
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