Africa aviation rebound takes off
CNBC Africa’s Zanele Morisson is joined by Aviation Industry, with Kamil Al Awadhi, the Regional VP for Africa and the Middle East for more.
Mon, 03 Apr 2023 16:13:54 GMT
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AI Generated Summary
- Air travel in Africa is recovering, with numbers close to pre-COVID levels and expected to surpass them next year.
- Challenges such as high fuel costs, infrastructure deficiencies, and political instability are hindering the industry's progress.
- Initiatives like Focus Africa and the push for open skies agreements aim to address these challenges and drive the industry towards sustainable growth.
The African aviation industry is showing signs of recovery after facing significant challenges in the past year due to the COVID-19 pandemic. In a recent interview on CNBC Africa, Kamil Al Awadhi, the Regional VP for Africa and the Middle East, shared insights into the current state of air travel across the continent. According to Al Awadhi, air travel in Africa is on the path to recovery, with numbers marginally below pre-COVID levels but expected to exceed them next year. This positive trend can be attributed to the increasing inter-Africa and international flights, although there are still challenges that need to be addressed.
One of the major obstacles facing the African aviation sector is the high cost of fuel. Al Awadhi highlighted the disparity between oil prices and aviation fuel prices in Africa, noting that as the price of oil rises, the cost of aviation fuel in Africa also increases significantly. This financial burden has a direct impact on airlines operating in the region and poses a challenge to the industry's profitability.
Infrastructure is another critical issue that the aviation industry in Africa must tackle. Al Awadhi emphasized the need for consistent investment in infrastructure to improve safety regulations, Air Navigation Service Providers (ANSP), airline efficiency, and passenger service levels across the continent. To address these concerns, an initiative called Focus Africa has been launched, focusing on enhancing infrastructure standards in airports and related services.
Despite making progress in recovery, political and economic instability remain key factors that impact the industry's growth. Al Awadhi acknowledged the challenges of building trust with stakeholders amidst frequent changes in political leadership, which can disrupt industry initiatives. However, he expressed confidence in navigating these hurdles with the support of stakeholders and partners involved in the Focus Africa project.
One of the long-standing goals for the African aviation sector is to achieve open skies and facilitate easier travel across borders. Al Awadhi highlighted the importance of proper preparation and infrastructure development before implementing agreements to open up airspace. He emphasized the need to level the playing field and ensure readiness for the transition to open skies, with a focus on implementing the Single African Air Transport Market (SAATM) in the coming years.
Another pressing issue affecting airlines in Africa is the challenge of blocked funds, where countries withhold funds belonging to airlines, amounting to approximately $1.6 billion in total. Al Awadhi stressed the urgency of addressing this issue as it impedes the growth of the industry and hinders initiatives like SAATM. Finding solutions to unlock blocked funds and facilitate financial transactions is crucial for fostering a more conducive business environment for airlines operating in Africa.
In conclusion, while the African aviation industry continues to face obstacles, there is optimism for a brighter future with strategic initiatives in place to address key challenges. With a focus on enhancing infrastructure, navigating political complexities, and unlocking financial barriers, the industry is poised to overcome hurdles and soar towards a sustainable and resilient future.