Commentary archive

Why have the overseas creditors who recently repossessed four Airbus A310–300s from Air Afrique now served a claim on the airline demanding a sum of money which exceeds the total original price of the aircraft – given that Air Afrique has already returned the four young aircraft, made a pre-delivery downpayment of US$80 million (25% of the original cost) and has paid US$173 million to creditors?

Airline industry consolidation is quickly gathering pace across the world, with carriers in North America, Europe and Asia clearly taking the lead. The trend is evidently towards the formation of a few (perhaps just two or three) powerful, global airline ‘blocs’ each consisting of a group of strategically-chosen carriers from diverse geographical regions.

Kenya Airways has come a long way since the KLM investment in January, 1996, and its public flotation in June, 1996. The Kenyan airline’s new shareholding structure symbolises the momentous changes that have been wrought.

European airlines, which already carry the lion’s share of international passenger traffic to and from Africa, are continuing to make significant in-roads into the African air transport market. This penetration has had contrasting consequences for several African airlines. Some are benefitting from their link-up with much stronger foreign carriers, while others view the encroachment with concern.

Ron Montgomery, the United States Federal Aviation Administration’s Senior Representative for Sub-Sahara Africa, faced a barrage of questions during AFRICAN AVIATION’s Fifth Annual Conference on ‘Aircraft Maintenance & Engine Overhaul in Africa’ held in Cairo, Egypt, in November, 1996.

Interviewed by AFRICAN AVIATION magazine in early 1994, shortly after he took over the helm of Ethiopian Airlines, Dr Ahmed Kellow said that what the national carrier needed most was decisive leadership and a clearly-defined business strategy for the 1990s, and beyond.

Landing in Dar-es-Salaam on a flight straight from bustling Johannesburg one is immediately struck by the contrasting levels of economic and aviation activity in Tanzania and South Africa. Nonetheless, while there may be a lack of financial resources in Tanzania at present, there is an abundance of goodwill among the people and potential riches in the country’s under-tapped tourism industry. Certainly, improved air transport links would assist in developing Tanzania’s economy and tourism business. 

Alliance, the new joint venture airline, could become a shining example of airline co-operation in Africa. If it is to succeed, the two major tests it must pass are to be profitable and to ensure that all its shareholders benefit.