ACI forecasts significant increase in global passenger traffic during 2022

global passenger traffic

The Airports Council International (ACI) says global passenger traffic in 2022 will be significantly higher than during the previous two years due to the relaxation of travel restrictions and returning confidence in air travel. 

Global passenger traffic is expected to reach 77% of COVID-19 pandemic levels, with 7.1 billion passengers travelling through airports in 2022. The positive trends in 2022 will be driven by global domestic passenger traffic.  

However, ACI warned that much uncertainty still surrounds the air travel recovery, “especially in the medium to long term” due to geopolitical conflicts, higher inflation, the risk of economic downturn, supply chain bottlenecks, labor shortages and potential new outbreaks.  

According to the organization, global domestic passenger traffic is forecasted to reach pre-pandemic levels in late 2023, while global international passenger traffic is expected to reach pre-COVID levels in the second half of 2024. This is hampered by a sluggish recovery in Asia-Pacific and a slower recovery in global international travel. 

“With the combination of ‘vacation deprivation’ and an upsurge in confidence in air travel provided by increased vaccination rates and safety measures, the relaxation of travel restrictions will help boost the propensity for air travel and fuel the industry’s recovery,” ACI World Director General Luis Felipe de Oliveira said. 

“With many countries taking steps towards the return to a certain normality, lifting almost all the health measures and travel restrictions, we expect a jump in air travel demand in the second half of 2022,” de Oliveira added. 

Source:  Aerotime Hub

View: Carbon offsets may ease your flight guilt, but they aren’t saving the planet

Book a flight and you’ll usually get the option to pay to offset your carbon emissions. In essence, your contribution funds tree planting and other projects intended to counterbalance the carbon you emit.

It’s a clever marketing ploy. But carbon offsets are a dangerous distraction from the need to reduce emissions.

While global aviation emissions almost halved during the pandemic, they are predicted to reach pre-pandemic levels by the end of this year. In fact, they’re on track to rise a further 25 per cent by 2030 – with disastrous consequences for nature and climate vulnerable communities.

Carbon offset schemes perpetuate the idea that the climate crisis shouldn’t stop aviation from increasing. They assuage climate guilt, while passing the problem onto someone else.

Experts also agree they don’t work. In 2017, a European Commission report found that 85 per cent of offset schemes established under the Kyoto Protocol Clean Development Mechanism failed to reduce emissions. And last year, the EU stopped counting offset schemes in emissions reductions targets.

There are better ways to cut your holiday emissions. So, what should travellers do instead?

Fly less and stay longer

Limiting the number of flights, you take is the simplest and most effective way to reduce your holiday carbon.

Data from the International Civil Aviation Organisation (ICAO) calculates that a return economy flight from London to New York emits an estimated 0.62 tonnes of CO2 per passenger. That’s 11 per cent per of the average Briton’s annual carbon footprint, and equivalent to the average Ghanaian’s total emissions a year. The more you fly, the heavier your footprint will weigh.

So, fly less, and instead stay longer. You’ll enjoy a more relaxing holiday and an opportunity to explore your destination in more depth too.

Swap planes for trains

Making the journey part of your holiday is a feasible option across much of Europe. Good connections link a multitude of popular holiday destinations. Taking the train from London to Madrid, for example, emits an estimated 174 per cent less CO2 than flying according to the Ecopassenger calculator.

Responsible Travel now offers over 160 flight-free holidays to Europe, while other tour operators such as Byway Travel, Exodus, and Cycling For Softies offer train travel as part of their tour packages too. Alternatively, The Man in Seat 61 is an excellent resource for independent travellers wanting to travel by train.

If an international flight is unavoidable, cut out other domestic flights if you can and explore your destination at a slower pace overland.

Explore destinations actively, or with emissions-free transport

Human powered exploration is not only emission-free but often wonderfully unexpected and eventful. Walking, cycling, or kayaking gives a more intimate perspective to your holiday and can lead to memorable chance encounters with local people. Electric bikes can take the strain when lungs or legs can’t.

On the electric front, some safari lodges in places like Kruger National Park, South Africa or Ol Pejeta Reserve, Kenya, now have lower-emission electric safari vehicles available. These have the added benefit of being quieter and less disturbing for wildlife.

Watch your ‘foodprint’ on holiday

With 37 per cent of global greenhouse gases coming from food production, what you eat on holiday can significantly impact your total carbon footprint too.

Choosing to eat local limits how far your food travels before it hits your plate. Farmers markets and restaurants serving fresh, locally sourced produce are a good place to start. As a bonus, this usually gives you the chance to try local delicacies and discover the dishes that make your destination sing.

If you want to go one step further, a plant-based diet can reduce your personal footprint by up to 73 per cent.

New alternatives to carbon offsets

Major airlines including British Airways, Lufthansa and KLM have recently launched schemes which allow passengers to fund the use of sustainable aviation fuel (SAF). Mixed in a 50 per cent ratio with standard aviation fuel, SAFs have the potential to lower flight emissions by up to 80 per cent.

However, their long-term effectiveness in decarbonising travel is still unknown and these schemes are still voluntary and expensive. What impact they will have remains to be seen.

When you do fly, make it count

The pandemic has thrown into sharp relief what can happen when tourism stops.

According to non-profit Conservation International, COVID lockdowns drove an increase in illegal mining and deforestation in Colombia and Brazil. In Africa, the charity says, the collapse of the tourism industry has driven an “alarming increase” in poaching and wildlife trafficking.

The World Travel and Tourism Council estimates that tourism accounts for 319 million jobs globally. As well as protecting forests from more extractive industries, it funds crucial anti-poaching patrols, and has helped establish marine and terrestrial reserves that preserve global biodiversity.

Saving the planet will need both reductions in carbon emissions, plus extensive rewilding. If you do choose to fly, look for nature-positive holidays which actively benefit wildlife and habitats, and pick trips that ensure the money you spend ends up in local hands.

Carbon offsets aren’t even a sticking-plaster solution to our climate crisis.

Want to be a greener traveller? The truth is you’ll need to fly less and do more in your destination to reduce your carbon footprint. And when you do fly, make it count. You might find it makes for a more memorable holiday for you too.

Source: Euronews

Russia-Ukraine crisis has less impact on airlines – IATA

Impact from the conflict in Ukraine on air travel has been limited, according to the International Air Transport Association (IATA).

It further said effects of the Corona virus Omicron variant continued to be largely confined to Asian domestic markets.

The latest IATA industry report shows total traffic in March as measured in revenue passenger kilometers was up 76 per cent compared to March last year.

Although that was lower than the 115.9 per cent rise in February year-over-year demand, volumes in March were the closest to 2019 pre-pandemic levels, at 41 per cent below.

Domestic traffic was up 11.7 per cent compared to the year-ago, far below the 60.7 per cent year-over-year improvement recorded in February.

This largely was a result of the Omicron-related lock downs in China. March domestic revenue per customer was down 23.2 per cent versus March 2019.

International revenue per passenger rose 285.3 per cent compared to same period last year, exceeding the 259.2 per cent gain experienced in February versus the year-earlier period.

Most regions boosted their performance compared to the prior month, led by carriers in Europe.

“With barriers to travel coming down in most places, we are seeing the long-expected surge in pent-up demand finally being realised,” IATA’s director general Willie Walsh said.

He added that unfortunately, there are long delays at many airports with insufficient resources to handle the growing numbers.

”This must be addressed urgently to avoid frustrating consumer enthusiasm for air travel,” he said. 

African airlines had a 91.8 per cent rise in March compared to a year ago, improved compared to the 70.8 per cent year-over-year increase recorded in February.

 Air travel demand is challenged by low vaccination rates on the continent as well as impacts from rising inflation.

Capacity in March was up 49.9 per cent and load factor climbed 14.1 percentage points to 64.5 per cent.

European carriers continued to lead the recovery, with March traffic rising 425.4 per cent compared to same period last year. It improved 384.6 per cent the previous month.

 The impact of the war in Ukraine has been relatively limited outside of traffic to and from Russia and countries neighbouring the conflict.

Capacity rose 224.5 per cent, and load factor climbed 27.8 percentage points to 72.7 per cent.

Europe was followed by Middle Eastern airlines’ whose traffic rose 245.8 per cent during the month under review compared to similar period last year.

March capacity rose 96.6 per cent versus the year-ago period, and load factor climbed 31.1 percentage points to 72.1 per cent.

Latin American airlines ‘March traffic rose 239.9 per cent compared to the same month last year, a little change from the 241.9 per cent increase in February.

 The region benefited from the end of bankruptcy procedures for some of the main carriers based there.

March capacity rose 173.2 per cent and load factor increased 15.8 percentage points to 80.3 per cent, which was the highest load factor among the regions for the 18th consecutive month.

North American carriers experienced a 227.8 per cent traffic rise in March, slightly down on the 237.3 per cent rise in February.

Capacity rose 91.9 per cent, and load factor climbed 31.2 percentage points to 75.4 per cent.

Source: The Star

New aviation boss after judge rejects suit against hiring

Kenya Civil Aviation Authority (KCAA) director-general Emile Arao has assumed office after a court dismissed a petition that an NGO had filed to stop his appointment last week.

Mr Arao — a US-trained aircraft engineer, aviation veteran and businessman — has finally replaced Gilbert Kibe who left the agency last month after completing his term.

The KCAA board had appointed Nicholas Bodo, a Ministry of Transport executive, as the acting director-general of the State corporation while the dispute over Mr Arao’s appointment was before the court.

The High Court declined to stop the appointment of Mr Arao, saying the petition Kazi Mtaani na Shadrack Wambui, the NGO, filed was not compelling enough.

“He has finally taken office from Mr Kibe. A petition that was filed to block his appointment has been dismissed by the Employment and Labour Relations Court,” a source at the KCAA told the Business Daily on Monday.

The petitioner moved to court to block Transport Cabinet secretary James Macharia’s appointment in March.

The NGO claimed that a report by the Arusha-based East Africa Legislative Assembly (EALA) had indicted Mr Arao of poor management and possible embezzlement of funds at the East African Civil Aviation Safety and Security Oversight Agency (EAC-Cassoa).

Employment and Labour Relations Court judge David Nderitu, however, ruled that there was no evidence of these allegations of mismanagement at his previous workstation.

The judge said he was not satisfied the petitioner had demonstrated an arguable case with a likelihood of success, arguing that the court is not an investigating body.

“In view of all that is stated above, the conservatory orders sought by the petitioner in the notice of motion dated March 14, 2022, are hereby denied,’’ said the judge in a ruling delivered on May 10.

Mr Arao has been battling allegations of incompetence and misuse of finances at Cassoa after the East African Legislative Assembly, in an audit report, fingered him over poor management of finances and recommended he be held accountable.

He, however, countered that if there was wastage or theft of funds, the audited financial statement and management letter would have led to a qualification of the accounts, which did not happen.

Source: Business Daily

IATA chief expects passenger traffic recovery sooner than expected

The aviation industry could return to pre-pandemic passenger traffic levels sooner than expected, according to the director general of the International Air Transport Association.  

Willie Walsh told Reuters that the industry could reach 2019 traffic levels in 2023, a year earlier than previously forecast. The war in Ukraine, ongoing restrictions in China, high oil prices, and travel delays from staff shortages are not denting the recovery so far, he said.   

“I don’t think we should be distracted from the fact we are seeing a strong recovery and I think that recovery will gather momentum as we go through the rest of this year into 2023,” Reuters quoted Walsh as saying in an interview on May 9, 2022. 

“We’re seeing very strong bookings,” Walsh added. “Certainly all the airline CEOs I’m talking to are seeing not just good demand for year-end travel but they continue to see demand as they looked through the year.” 

IATA data for March 2022 showed strong growth in passenger traffic compared to 2021, with Europe leading the recovery.  

In March 2022, traffic measured in revenue passenger kilometers rose 76% compared to March 2021. That’s still a drop of 41.3% compared with March 2019 levels, but an improvement on the 45.5% drop seen in February.  

“With barriers to travel coming down in most places, we are seeing the long-expected surge in pent-up demand finally being realized,” Walsh commented in the traffic data release on May 4, 2022.   

However, Walsh also cautioned about a lack of resources to handle the return of demand.  “Many people have waited two years for a summer holiday – it should not be ruined through lack of preparation.” 

Source: Aerotime Hub

IATA: March Air Demand Rebounds at Slightly Slower Pace

Despite a slowdown in the pace of year-over-year total increases, passenger air traffic in March was the closest to 2019 levels since the pandemic began, according to the International Air Transportation Association. 

March passenger air volume was 58.7 percent recovered compared with March 2019 levels, versus February’s 54.5 percent. Revenue passenger kilometers in March were up 76 percent year over year, compared with an increase of nearly 116 percent in February.

Effects on air travel from the conflict between Russia and Ukraine were “limited.” However, the Covid-19 omicron variant spread in China has affected domestic air travel, though not international traffic for Asia-Pacific carriers, according to IATA.

“With barriers to travel coming down in most places, we are seeing the long-expected surge in pent-up demand finally being realized,” IATA director general Willie Walsh said in a statement. “Unfortunately, we are also seeing long delays at many airports with insufficient resources to handle the growing numbers.”

Total global capacity was up 46 percent year over year, representing a slowdown from the increase of 68.4 percent in February 2022. Capacity was down 35.5 percent compared with March 2019. Europe led both traffic and capacity changes, at 246.9 percent and 162.8 percent, respectively. Asia-Pacific continued to report year-over-year declines for both categories, at 17.9 percent and 14.9 percent, respectively. Total load factor was 74.7 percent.

March domestic air traffic continued its recovery, increasing 11.7 percent year over year, representing a 23.2 percent decline from March 2019 levels. Domestic capacity was up 1.5 percent year over year and was down 18.4 percent from 2019 levels. Brazil showed the strongest year-over-year traffic increase at 99.1 percent. China’s domestic traffic declined 59.1 percent, due to “drastic lockdowns” and travel restrictions following the spread of omicron in the country.

Still, Asia-Pacific airlines saw international traffic increase 197.1 percent year over year in March, up from the 146.5 percent increase in February, following relaxed restrictions in South Korea, New Zealand, Singapore and Thailand. Every region except Africa reported triple-digit percentage increases in international traffic, with Europe leading the regions at a 425.4 percent gain as well as a 224.5 percent increase in capacity. 

“The ongoing recovery in air travel is excellent news for the global economy, for friends and families whose forced separations are being ended, and for the millions of people who depend on air transport for their livelihoods,” Walsh said. 

Source: BTN

Foreign airlines in Nigeria to begin ticket sales in dollars

APG Interline E-Ticketing (APG IET), an airline servicing firm, on Wednesday announced that it would begin sales of air tickets in U.S. dollars from April 19 amidst scarcity of foreign currency in Nigeria.

“Dear travel partners, warm greetings from APG. This is to bring to your notice that with effect from April 19, 2022, GP would only accept issuing of tickets in US dollars and not naira,” APG IET said in a travel advisory to its trade partners.

The group said the move became necessary due to the difficulty in repatriating airlines’ funds stuck in Nigeria and other countries, coupled with foreign exchange fluctuations.

“This is mainly due to repatriation issues and the forex situation in the country. This would most likely be a temporary measure till the forex situation improves,” the firm said.

This is coming less than three weeks after Nigeria’s aviation minister, Hadi Sirika, asked the federal government to grant access to both local and foreign airlines to foreign exchange.

Trapped funds

Last month, Mr Sirika asked the Nigerian government to facilitate the repatriation of ticket sales proceeds trapped in Nigeria.

The minister said Nigeria currently holds $283 million worth of foreign airlines’ funds in the country.

“Aviation business suffers from issues of foreign exchange by local and foreign airlines and their inability to repatriate blocked funds. Nigeria currently holds $283mn worth of foreign airlines funds in the country. I humbly ask for the support of the Central Bank of Nigeria through the directives of President Muhammadu Buhari, to aid access of both local and foreign airlines to foreign exchange,” the minister said.

According to the Bilateral Air Service Agreements (BASAs) with countries, airline tickets are mostly sold in naira while the airlines would repatriate the funds in dollars through the country’s central bank.

The federal government in 2018 cleared $600 million blocked funds but there has since been a backlog.

Analysts say the decision by the APG IET may worsen the challenges faced by air travellers in Nigeria who may have to source forex from the black market to purchase their tickets.

The notable carriers on the APG IET platforms include South African Airways, South African Airways, Fly Dubai, Kenya Airways, Middle East Airlines, Royal Air Maroc, Rwandair, Thai Airways, Turkish Airlines, French Bee, Egypt Air, ASKY, Air Seychelles, Air Algerie, and Air Namibia.

Others are Air Panama, Air Burkina, Avianca, Bangkok Airways, Cabo Verde Airlines, Fiji Airways, Hong Kong Airlines, and Malaysian Air amongst others.

Some of the carriers which fly directly into Nigeria are South Africa Airways, Turkish Airlines, Asky Airlines, Egypt Air, Royal Air Maroc, Middle East Airlines, Rwandair and Kenya Airways.

Source: Premium Times

African traffic set for rise, but fuel costs concerning, reports AFRAA

African passenger traffic is set to rise but the recovery may be hit by the recent spike in jet fuel prices, says the African Airlines Association (AFRAA) in its latest report. 

In a statement released by the association, passenger traffic volumes across Africa have remained depressed, however the sector is making ground in its recovery. 

In March 2022, African airlines’ capacity reached 67.3% and traffic 56% compared to the same month in 2019, according to AFRAA estimates.  

AFRAA estimates the sector revenues will fall by $4.7 billion compared to 2019 levels.  In 2021, revenue for African airlines fell by $8.6 billion compared to 2019 levels.  

“In Africa, the jet fuel price hike is worrying and has the potential to slow down the travel recovery,” the association commented. “Platts estimates that the total impact of the price increases on the overall jet fuel bill will reach $86.3 billion based on an estimated average price of $115 per barrel.” 

Travel in and across Africa is continuing to make a steady recovery towards pre-covid levels.  

In February 2022, intra-African connectivity reached 72% of pre-covid levels. AFRAA estimates that this will increase to 75% in March 2022 as travel restrictions continue to ease across several African states. 

Domestic traffic in Africa accounted for the largest share of capacity and passengers carried on the continent. This is in comparison to intra-Africa traffic (flights from one African country to another African country) and intercontinental traffic (flights to and from an African country to a destination outside Africa). 

According to AFRAA: “domestic demand at 46.5% outperformed intra-Africa and intercontinental [demand] which remained subdued at 31.3% and 22.3% for intra-Africa and intercontinental respectively.” 

However, African airlines made significant ground in expanding their international operations. In February 2022 African airlines “reinstated approximately 79.9% of their pre-Covid international routes,” according to the report.  

“Five African airlines continued their international routes expansion drive and had surpassed the number of international routes operated pre-Covid,” added AFRAA. 

AFRAA also said that 10 other African airlines either re-opened suspended routes or launched new international routes. 

Source: Aerotime Hub

UAE Signs New ICAO Aviation Cybersecurity Collaboration Agreement

A new agreement signed by government officials from the Minister of United Arab Emirates (UAE) Cabinet Affairs and the International Civil Aviation Organization will form a new ICAO-UAE partnership to improve aviation cybersecurity strategy and policy for aviation stakeholders in the Middle East.

The agreement was signed during an ICAO mission to the UAE last week, where ICAO Council President Salvatore Sciacchitano addressed the UAE’s “High Level Conference on Cybersecurity in Civil Aviation,” which is held as part of the annual World Government Summit in Dubai. In his speech, Sciacchitano highlighted the presence of some of the legacy systems and networks that comprise what he describes as the backbone of aviation’s “information architecture” or “system of systems.”

“Legacy systems most especially can contain outdated hardware and software that is not always easy to replace. They also can pose inherent security vulnerabilities, being unable to accommodate latest security and encryption best practices,” Sciacchitano said.

While the pandemic led to a historic decrease in the annual volume of passenger-carrying airline flights between 2020 and 2021, a report from Eurocontrol’s new cybersecurity data collection initiative showed a major rise in the number of cyber attacks reported to the agency by aviation companies based in Europe. Several recent cyber attacks that have caused disruption to airlines, airports, and aviation service providers have also shown how large of a target the system of systems is for hackers and bad actors.

In February, Swissport, an airport ground services provider with operations at 285 airports in 45 countries, reported a ransomware attack that took some of its main information sharing systems temporarily offline. Newsweek published an article last year showing how the personal data of more than 4 million passengers was compromised in a cyber attack targeting several airlines that operate in the Asia Pacific region including Air India, Malaysia Airlines, Singapore Airlines, and Finnair.

“The pandemic has also fostered a significant public expectation for touch-less technologies to make their future traveller experience healthier and safer, meaning that we face an entire new wave of compartmentalized digitalization, and still further system-of-systems vulnerabilities arising,” Sciacchitano said in his speech.

The UAE-ICAO aviation cybersecurity agreement will focus on collaboration between the two sides that fosters knowledge and information sharing leading to “accelerators, innovation in future civil aviation, and cybersecurity,” according to ICAO’s announcement of the new agreement. ICAO’s agreement with the UAE government is the agency’s latest progress on standardizing the way the global aviation industry responds to and regulates cyber attacks against aviation assets.

The agency adopted Assembly Resolution A40-10—Addressing Cybersecurity in Civil Aviation, during the 40th Session of the ICAO Assembly that calls upon ICAO member-states to implement the ICAO Aviation Cybersecurity Strategy, first published in October 2019. Sciacchitano also advocated in his speech for more ICAO member-states to adopt the Beijing Convention and Protocol of 2010 to establish a global legal framework for dealing with “cyberattacks on international civil aviation as crimes.”

“In addition, ICAO has been developing an international aviation trust framework to support the cybersecurity and cyber resilience of civil aviation in the air navigation domain,” Sciacchitano said. “This is a very important project, probably the most important of recent years, to support the secure global exchange of digital aviation information, and will include procedures, technical specifications, and guidance material supporting current and future global network requirements.”

Source: Aviation Today

African airports offer new opportunities for investors

The unprecedented demand for airport capacity to handle essential cargo such as temperature-sensitive pharmaceuticals and Covid-19 vaccines over the past two years of the Covid-19 pandemic exposed the massive shortage of airport infrastructure in Africa.

Even among major airport hubs in various parts of Africa, passenger and cargo figures have overwhelmed available capacity or would do so in the near future. This poor capacity restricts African airports’ growth and associated revenue. In response to this challenge, Ethiopian had increased the existing Bole International Airport capacity from seven million passengers per annum capacity to 22 million capacity. In addition, Ethiopian Airlines a few years ago announced plans to build a $5 billion massive airport in Addis Ababa, to complement the existing Bole International Airport and accommodate fast-rising passenger and cargo traffic. The airport would cover an area of 35 square kilometers and accommodate 100 million passengers annually.

Agreeably, this lack of airport capacity in Africa represents investment opportunities for investors. Transit sheds, cold stores, specialized freight consolidation centers, and e-warehousing, among others, present good investment opportunities all over the continent. Daniel Eckstein, Business Development Manager Middle East, and Africa of Munich Airport International (MAI) – Munich Airport’s international business subsidiary, said African airports and investors have opportunities to create airport cities, business parks, or free trade zones in order to tap further non-aviation revenue potential.

On the landside too, African airports could diversify revenue streams with shopping, restaurant, hotel, and conference centers, office leasing for international companies, rental events spaces and construction of a smart city in form of the cross-industry innovation centre, among other businesses.

Leading from the front Currently, a number of African airports and airport authorities are already developing or executing future expansion plans to meet crucial current and future demand, ensure steady growth and development of their airports, and contribution to their economies. The Kenya Airports Authority (KAA), which refers to itself as “the largest air freight service provider in Africa”, is implementing its Air Cargo Strategy 2019-2022 to drive cargo development.

At Isiolo International Airport, KAA says cargo handling sheds have been completed to take care of the export of agricultural produce and Miraa. Construction of a modern transit shed is underway at Mombasa’s Moi International Airport, and a new cold storage room and specialized consolidation area will form part of the upgrade planned for the airport. Kisumu is being positioned to attract massive trade and investment in its Great Lakes region.

Early January 2022, Kisumu Airport announced its first cargo flight to international markets on Kenya Airways. “Local and international investors are attracted to Kisumu International Airport due to its multi-modal transportation capabilities and proximity to the Kisumu Port, the ICD, and the modern road network,” KAA states. KAA is also in the process of modernizing and expanding Eldoret International Airport’s transit sheds to handle more cargo “as we envisage increased airfreight activity, both local and international.”

Cameroun recently announced infrastructure improvement inaugurated at the Yaounde-Nsimalen International Airport including the Emergency Operations Centre (EOC), the patrol road, the rehabilitation of the security fence, and the Yaounde-Nsimalen International Airport ring road. Sierra Leone also reported efforts to improve safety at its airports. Jack Massaquoi, General Manager of Sierra Leone Airports Authority (SLAA), says the Sierra Leone Airports Authority wants to keep first responders on their toes and to always stay cognizant of their safety roles. For Seychelles airports, they have a “strategy to proactively pursue innovative business ventures to provide more diverse services for our customers.”

Public-private partnership Partnerships are vital to reposition African airports to meet the current and future needs of airport users including airlines, tourists, and business meetings. Public-private partnership is instrumental to the development of Kenya airports, and this offers the solution to develop Africa’s remote airports where agriculture and other primary produce are generated.

In West Africa, Nigeria’s move to concession its major international airports in Kano, Port Harcourt, Abuja, and Lagos could be a first step towards positioning the country’s airports to benefit from the air transport and trade liberalization in the continent. Without the intrigues and controversies that marred previous concessions in Lagos, Nigerian airports development could be another example for other African airports to toe their line.

Airline-airport synergy Both Kenya and Ethiopian Airports expansion are significantly driven by their well-established national carriers, Kenya Airways and Ethiopian, respectively, which spearhead cargo and passenger traffic to the airports. Other African states could drive their airports expansion relying on traffic from privately-owned domestic or regional African airlines, which have now been empowered to fly into airports on the continent unfettered by the glorious Single African Air Transport Market (SAATM) established in 2018.

About 35 states have signed the SAATM, so airlines from these states are expected to explore the airports in these states and the high volume of trade is expected to ensue from the operationalization of the complementary African Continental Free Trade Area (AfCFTA) launched continent-wide in January 2021. Under the new SAATM and AcfCFTA environment, there must be robust collaboration and partnerships between African airlines and African airports. This also presupposes that African airports must intensify their non-aeronautical revenue drive which would enable these airports, in turn to reduce emphases on charges on airlines. Most African airports operate far below 50 percent of non-aeronautical revenue.

Ethiopian Airports, for instance, is showing good example in non-aeronautical revenue development, with its luxury Skylight Hotel that offers 373 guest rooms and conference hall for 2500 guests, being the biggest hotel in Addis Ababa. Targets and timelines The examples of multi-year development plans by Kenya Airports Authority, Ethiopian Airports, and Airports Company South Africa (ACSA) have clearly demonstrated benefits. The 2010 World Cup in South Africa enabled ACSA develop especially the Johannesburg airport to accommodate the traffic resulting from the event and future traffic.

Setting airport expansion and development targets would enable African airports measure their direction, as well as growth achieved within a given period. It will also guide the private sector investors and concessionaires to expedite action in areas of immediate need. Most importantly, Africa is still providing less than two percent of global air traffic; thus, setting a realizable target of 5-10 percent of global market share over the next 5-10 years is a project all African airports should strive towards, as a priority. Synergize with cargo value-chain Aviation cannot develop in a silo.

Airports development stakeholders must collaborate with especially cargo sources such as the agricultural sector and the transport and packaging value-chain to develop and facilitate acceptable products and package standards for movement by air. This would reduce spoilage and economic losses associated with movement of perishable agricultural and other products by poor road networks over long distances in Africa. Embrace technology and e-commerce Africa’s 1.3billion population has remarkably the youngest population that is also largely immersed in mobile technology and e-commerce. African airports should realign accordingly and adopt new airport technology to enhance customer experience, and further explore the fast-rising e-commerce industry.

E-commerce should be a key feature among businesses in the evolving Free Trade Area in Africa which is designed to drive massive trade activities within Africa. The current traffic trend mired by the Covid-19 pandemic could make short-term traffic projections rather difficult. The International Civil Aviation Organization (ICAO) says “Africa and the Middle East recovering moderately, until Africa plunged again due to Omicron restrictions.” In fact, Ali Tounsi, secretary-general of Airports Council International Africa Region (ACI-Africa), says that cargo is now one-third of the airline business; and it is hoped that air cargo can grow even further with the advent of the African Continental Free Trade Area, e-commerce and the linkages to manufacturing facilities and Special Economic Zones (SEZ).

Despite this challenge, 2022 presents a window of recovery for African airports and investors to take the better option of planning and executing for the immediate- and longer-terms, given that the pandemic would become better managed to unstop reopening of borders and flow of air traffic to African airports.

Government must take responsibility According to Tounsi, African airports are controlled nearly 90 percent by governments. This puts the responsibility of driving the evolution of African airports on the governments. Governments must, in turn, create the enabling environment that attracts private investors, including airport-airline partnerships. African governments must take responsibility to ensure that African airlines are supported – under a robust Dispute Settlement Mechanism of the SAATM – to drive cargo and passengers to African airports, including airports with huge cargo potentials. Foreign airlines are already positioned to take away the opportunities emanating with the AfCFTA, with Qatar Airways relishing prospects of cargo from Nigeria’s Kano International Airport.

Source: Logistic Update Africa