Africa's aviation industry has great potential - National Aviation Services CEO
Africa's aviation despite its major challenges is an industry that has very big potential for future growth in Africa says Hassan El-Houry, CEO National Aviation Services. He said this speaking to CNBC Africa on the side-lines of WEF Davos 2018.
Thu, 25 Jan 2018 14:47:10 GMT
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AI Generated Summary
- The unique attributes of Africa, including its 54 countries and challenging terrain, reinforce the importance of aviation as the primary mode of transportation for goods and services in the continent.
- The rise of major African airlines and increased investments from Middle Eastern carriers highlight the growth potential of Africa's aviation sector, although governance issues continue to plague national airlines.
- The need for open skies in Africa is crucial to lower ticket prices, improve flight connections, and boost passenger volumes, following successful examples from regions like Europe, the United States, and East Asia.
The aviation industry in Africa holds immense potential for growth and development, despite facing major challenges. Hassan El-Houry, CEO of National Aviation Services, emphasized the importance of aviation in the continent, noting that Africa's unique attributes further reinforce the significance of the industry. With 54 countries, 13 of which are landlocked, the transport of goods and services by sea is not a feasible option, making air transport a crucial mode of transportation. The challenging terrain and road network in Africa also make road transport difficult, further underlining the importance of air travel in the region. El-Houry highlighted the key players making investments in Africa's aviation sector, noting a shift from European airlines to Middle Eastern carriers and the rise of major African airlines such as Ethiopian, South African, Kenyan Airways, and others. While African carriers have historically lagged behind their European counterparts, they are rapidly expanding and enhancing their services.
Despite the industry's potential for growth, many national airlines in Africa are facing challenges and struggling to stay afloat. El-Houry attributed this to governance issues and questioned the role of governments in the airline industry. He emphasized the importance of having the right governance structure, independent board members, and professional management teams to shield airlines from political influences and enable sustainable growth.
Addressing the problems plaguing the aviation industry in Africa, El-Houry pointed out the prohibitively high ticket prices, poor flight connections, and historical dominance of foreign carriers. He stressed the need for open skies in Africa to lower ticket prices, increase flight options, and boost passenger volumes. Open skies agreements have proven successful in regions like Europe, the United States, and East Asia, leading to reduced ticket prices and increased air traffic. El-Houry urged African countries to implement open skies policies to support the growth and competitiveness of the aviation sector.
In conclusion, Africa's aviation industry has great potential for future growth and development. With the right governance structures, investments, and policies in place, African airlines can overcome challenges and capitalize on the continent's unique attributes to unlock new opportunities for the industry's advancement.
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