East African carriers look to remain competitive amid COVID-19 shocks

East Africa's aviation industry is currently experiencing a surge in new airlines and expansion plans, with carriers like Congo Airways, Rwanda Air, and Uganda Airlines making significant moves to capture a larger market share. CNBC Africa recently sat down with aviation expert Derek Nseko of Ifly Global Aviation to discuss the competitive landscape in the region and the challenges facing these airlines as they navigate the effects of the COVID-19 pandemic. One of the key themes that emerged from the interview is the intense competition brewing among East African carriers as they vie for dominance in the airspace. The region is seeing a rapid increase in capacity and new routes, leading to a heightened sense of competitiveness. This competition is ultimately beneficial for travelers, as it often results in lower prices and improved services. However, the industry is also facing significant hurdles, such as high taxes and regulatory barriers, which in turn impact the cost-effectiveness of airlines in the region. Ethiopia Airlines has stood out as a notable success story in the African aviation industry, with its profitable operations and cargo business helping it weather the challenges of the pandemic. Other carriers, such as Kenya Airways, Rwandair, and Air Tanzania, are facing uncertain prospects as they navigate the turbulent aviation landscape. The road ahead for these airlines remains uncertain, with the ongoing pandemic continuing to disrupt the industry. While some carriers, like Rwandair, have strategic partnerships that could drive growth, others are focusing on restructuring and cost-cutting measures to survive in the current environment. The lessons from past experiences, such as the 2008 recession, offer valuable insights for airlines looking to emerge stronger from the current crisis. As the industry looks towards recovery in 2021 and beyond, East African carriers must adapt to the evolving landscape and seize the opportunities presented amidst the challenges. With shifting market dynamics and changing consumer preferences, the path to success for these airlines will require strategic vision, operational agility, and a commitment to innovation and excellence.