Evolution of alternative fuels for aviation.

While the aviation sector will have to overcome huge challenges to achieve its goal of net zero carbon emissions by 2050, the industry has made great strides in its decarbonization journey. The uptake of sustainable aviation fuel (SAF) is growing, with global SAF capacity expected to be nearly 6 billion gallons by 2030 from 1.3 billion gallons in 2023.1 However, today it is severely constrained by the limited availability of alternative aviation fuels that are low in lifecycle carbon, cost-effective, safe, and high-performance.

Although the aviation sector only accounts for just over 2 percent of global energy-related greenhouse gas (GHG) emissions,2 air transportation is growing fast as global populations become wealthier. It means under a business-as-usual scenario, air travel could consume up to 10 percent of the planet’s remaining 1.5°C carbon budget by 2050.3

This report is tailored for leaders and stakeholders in the aviation industry, seeking to offer actionable insights on alternative fuels and a detailed analysis of readiness and adoption potential in the aviation sector.

By using the insights and recommendations provided, aviation organizations can better navigate the complexities of this transition, mitigate associated risks, and capitalize on emerging market opportunities.

alternate fuels readiness factors

Source:    KPMG analysis, “Fueling the energy transition,” 2024.

IATA – Remaining Relevant to Travel Agents

Modern Airline Retailing is an active and important initiative for airlines around the world. But though control of the Offer and Order environment is an essential component in a fiercely competitive industry, IATA is aware that not all airlines have the same set of requirements and distribution strategies.

“This is why the Agency Program is still so important,” says Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services. “IATA accredited agents are trusted distribution partners, and our Agency Program allows airlines and agents to come together to solve challenges and ensure this vital channel remains strong.”

Moreover, the Agency Program fits perfectly with the overall objective of giving customers greater choice. The travel agent is still a vital part of the offer to the customer and has become a hub for consolidating the travel experience. Travel agents are also playing an important role in Modern Airline Retailing as IATA continues to see an increase in NDC transactions in the BSP. 

“Really, they are travel consultancies now,” says Albakri. “They provide an end-to-end service and are now much more than ticket providers.”

In 2023, the travel and tourism sector contributed 9.1% to global GDP and created 27 million new jobs, according to the World Travel and Tourism Council. Airlines are critical to making that happen. And so are travel agents.

In fact, travel agents are still the industry’s strongest distribution channel. The aim, therefore, is to ensure these agents are robust, reliable partners and the process of engagement—whether it is payment or fulfilling passenger requests—is as seamless and cost-effective as possible.

Keeping the program relevant

The most important step was the development of New Generation IATA Settlement Systems (NewGen ISS) approximately five years ago. This introduced different levels of accreditation:

  • Go Global is for large multinational agents and simplifies BSP participation by having a single agreement and a consolidated financial security and Remittance Holding Capacity.
  • Go Standard agents are allowed to sell in cash and other forms of payment.
  • Go Lite agents benefit from not having to furnish financial securities to participate in BSP and are allowed to sell with IATA EasyPay and Credit Cards.

Airlines in turn gained from enhanced risk management and other tools that made the distribution of tickets through travel agents even safer.

“It is not one-size-fits-all anymore,” says Albakri. “Agents can join at an appropriate level of accreditation for their business but still gain from the trust and reach that being accredited brings.”

Supporting the recovery of the industry

After COVID, IATA focused on revamping the accreditation process and streamlining the requirements. The Go Standard agents do not have to go through a financial assessment for the first two years of operation, for example. All told, the changes have resulted in a 50% reduction in accreditation times and a customer satisfaction of 90%.

“We did all this without compromising the risk management criteria,” says Albakri. “In fact, we have enhanced it by adding different compliance reviews, such as PCI DSS (Payment Card Industry Data Security Standard), as a requirement for agencies selling in credit cards, and more robust real-time monitoring of agency sales. But we can improve further both on continuing to strengthen the risk environment and on improving IATA’s service to travel agents by reducing our processing times.”

The improvements in the accreditation process together with the resilience shown by the Agency Program during the pandemic has led to strong demand and growth in accreditation numbers.

“We have also been more present in events and different meetings where travel agents approached us to know more about the benefits of the program and the requirements to become IATA accredited,” says Albakri. “In addition, IATA has historically entered into promotional agreements with different parties to increase the number of Participants and we are fully committed to continuing with this best practice.”

As a result, the number of travel agent codes in the BSP has increased from 54,341 in 2022 to 58,923 codes in April 2024.

For Albakri, this proves that as long as there continues to be a commercial relationship between airlines and travel agents, the program will continue to be extremely valuable.

“Agents will be even more relevant in the future than they were in the past,” he believes. “The Agency program is at the heart of industry resilience because it is a strong, trusted system for distributing and selling tickets and collecting monies. There is also a very low cost of transaction and IATA will continue to improve the service we provide.”

Source:   IATA.

African Aviation Conference 2024: Key Commitments to Enhance Travel and Connectivity.

The African aviation sector reached a significant milestone this week with the conclusion of the African Aviation Conference, held in Addis Ababa, Ethiopia. This pivotal event brought together key stakeholders from across the continent and beyond, including government officials, airline executives, aviation experts, and industry partners. Over three days of intensive discussions, panels, and networking sessions, participants charted a forward-looking vision aimed at transforming Africa’s aviation landscape.

The conference, organised by the African Civil Aviation Commission (AFCAC), was themed “Elevating African Aviation: Innovation, Sustainability, and Connectivity.” It focused on addressing the unique challenges and opportunities within the African aviation industry. In his opening remarks, AFCAC Secretary General Tefera Mekonnen highlighted the sector’s potential to drive economic growth, enhance regional integration, and improve the quality of life for millions of Africans. Key Issues Discussed

Infrastructure Development:

One of the primary topics was the urgent need for infrastructure upgrades. Many African airports and related facilities lag behind global standards, hampering efficiency and safety. Delegates emphasised investments in modernising airports, expanding runways, and enhancing air traffic control systems. Public-private partnerships (PPPs) were identified as a crucial mechanism to mobilise the required funding.

Airline Cooperation and Partnerships:

The conference underscored the importance of cooperation among African airlines. Fragmentation has long been a challenge, with many small national carriers struggling to compete with international giants. The idea of forming strategic alliances and partnerships was championed to enhance competitiveness and expand route networks. The African Airlines Association (AFRAA) proposed initiatives to foster deeper collaboration and resource sharing among member airlines.

Regulatory Harmonisation:

Regulatory fragmentation across different African countries poses a significant barrier to seamless air travel. The implementation of the Single African Air Transport Market (SAATM), a flagship project of the African Union (AU), was a key focus. The initiative aims to create a unified air transport market in Africa, promoting competition and reducing airfares. Conference attendees called for accelerated adoption of SAATM by all AU member states to unlock the full potential of the aviation sector.

Sustainability and Environmental Concerns:

Environmental sustainability emerged as a crucial agenda item. Africa’s aviation industry is not immune to the global push for greener practices. Discussions centred on reducing carbon emissions, adopting sustainable aviation fuels (SAFs), and implementing more efficient flight operations. The International Air Transport Association (IATA) presented a roadmap for African airlines to achieve net-zero carbon emissions by 2050, aligning with global aviation targets.

Technology and Innovation:

Embracing technological advancements was highlighted as a pathway to revolutionise African aviation. From digital ticketing and biometric boarding systems to advanced data analytics for optimising flight operations, technology can enhance the passenger experience and operational efficiency. The conference featured showcases of cutting-edge solutions tailored for the African market, encouraging stakeholders to invest in and adopt these innovations.

Pledges and Commitments

The conference culminated in a series of pledges and commitments aimed at translating the discussions into concrete actions. Some of the key pledges included:

Investment in Infrastructure: Governments and private investors committed to allocating substantial resources towards upgrading and expanding airport infrastructure. This includes modernising terminals, enhancing cargo facilities, and improving air navigation services.

Enhanced Collaboration: African airlines vowed to work more closely through codeshare agreements, joint ventures, and shared services to enhance connectivity and operational efficiency. The establishment of an African aviation alliance was proposed to foster deeper cooperation.

Regulatory Reforms: Several countries pledged to expedite the implementation of SAATM, aligning their regulatory frameworks to facilitate a single aviation market. AFCAC committed to providing technical support and capacity-building programs to assist member states in this transition.

Sustainability Initiatives: Airlines and aviation authorities committed to adopting environmentally sustainable practices. This includes investing in SAFs, optimising flight routes to reduce fuel consumption, and implementing carbon offset programs.

Technological Adoption: Stakeholders pledged to embrace digital transformation, investing in technologies that improve safety, efficiency, and the passenger experience. This includes enhancing cybersecurity measures to protect against emerging threats.

Looking Ahead

The African Aviation Conference marked a significant step towards a more connected, efficient, and sustainable aviation sector in Africa. However, the real challenge lies in turning these pledges into reality. Continuous collaboration, investment, and innovation will be essential to overcoming the obstacles and realising the vision outlined during the conference.

As the conference concluded, there was a palpable sense of optimism and determination among the delegates. With the right strategies and concerted efforts, Africa’s aviation industry has the potential to soar to new heights, driving economic growth and improving the lives of millions across the continent. The future of African aviation looks promising, and the commitments made at this conference provide a strong foundation for the journey ahead.

Source: Tekedia.  

Airlines, government and businesses rush to get back on track after global tech disruption.

Transport providers, businesses, hospitals and governments on Saturday are rushing to get all their systems back online after long disruptions following a widespread technology outage.

The biggest continuing effect has been on air travel. Carriers canceled thousands of flights on Friday and now have many of their planes and crews in the wrong place, while airports facing continued problems with check-in and security. On Saturday around 10:30 p.m. EDT, flight-tracking service FlightAware listed more than 33,000 total flight delays on its website, and more than 2,700 cancellations.

Both American Airlines and United Airlines said Saturday that most of its operations were restored and back up and running.

At the heart of the massive disruption is CrowdStrike, a cybersecurity firm that provides software to scores of companies worldwide. The company says the problem occurred when it deployed a faulty update to computers running Microsoft Windows, noting that the issue behind the outage was not a security incident or cyberattack.

The Microsoft outage caused by the CrowdStrike software update also caused the return of a familiar — and dreaded — screen for many Windows users: what has come to be known informally as the “blue screen of death,” indicating that their computer systems are down.

Microsoft said 8.5 million devices running its Windows operating system were affected by the outage that affected consumers and businesses across the globe, including airlines, banks, health care providers, telecoms, retailers and even billboards in New York City’s Times Square.

In a blog post shared on Saturday morning, Microsoft said it engaged with CrowdStrike to automate work on developing a solution, sharing instructions on how to remedy the issue and deploying “hundreds of Microsoft engineers and experts to work directly with customers to restore services,” among other steps to keep people informed and help affected customers.

“We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines,” said the blog post from Microsoft cybersecurity executive David Weston.

“While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.”

Source: CBS News.  

Over 300 African BASAs compromised – IATA

Africa’s aspiration for a unified air transport market is facing significant obstacles as a recent analysis carried out by the International Air Transport Association (IATA) reveals a major roadblock: the poor implementation of the existing Bilateral Air Service Agreements (BASAs).

The study examined 607 BASAs across Africa and found that more than half are not being fully implemented by governments across the continent causing African Airlines to continue struggling with fragmented skies. BASAs are agreements that govern international air travel between countries, and they establish rules for designated airlines, including access to major airports. These BASAs are meant to regulate air traffic between countries, but their weak enforcement has continued to hinder the development of a strong internal air transport network.

The lack of compliance thwarts the plans for the Single African Air Transport Market (SAATM), an initiative designed to remove restrictions on airline traffic rights across the continent by simplifying air travel regulations. The initiative has the potential to unlock economic growth through increased trade and tourism but the current situation with BASAs paints a worrying picture.

IATA’s Regional Vice President for Africa and the Middle East, Kamil Alawadhi, recently raised serious questions about the commitment of African governments to SAATM, saying in a recent statement that existing agreements aren’t being properly implemented.

“The Single African Air Transport Market (SAATM) seeks to liberalise civil aviation across the continent by removing restrictions on traffic rights for African airlines. SAATM provides Africa with a ready-made mechanism to drive economic growth, but few governments have taken the steps needed for its implementation. Moreover, an IATA analysis of 607 bilateral air service agreements (BASA’s) in Africa revealed limitations on the development of intra-Africa connectivity because the implementation of over half of these agreements was being compromised.

“Non-compliance of by African governments BASA’s is a major obstacle to achieving seamless regional connectivity and growth in the African aviation sector. To develop economy-boosting intra-Africa connectivity, Africa’s governments must back SAATM with actions,” Alawadhi said.

Domestic operators push for BASA renegotiations

In Nigeria, the situation is peculiar. Domestic airlines say that the BASAs signed by the country in the past have been unfair to them and unfavorable to industry. The Airline Operators of Nigeria (AON) had earlier visited the Minister of Aviation and Aerospace Development, Festus Keyamo, where they presented a detailed proposal on steps the current administration should take to reengineer the sector.

The AON in its presentation to the minister argued that domestic airlines have not been well-represented in past negotiations, leading to huge revenue loss to the nation.

They said it was totally wrong to sideline domestic airlines when signing BASAs, saying the development has favoured the foreign operators who dominate the market.

“Bilateral (BASA) and Multilateral (MASA) Air Services Agreements are premised on the principle of Reciprocity. It typically provides for applicable conditions to designated airlines, typically include provisions for operations out of host country’s primary airport(s). Domestic airlines have not had major contributions in previous negotiations and the lack of domestic representation has resulted in huge capital flight and side-lining of the AON membership,” AON said.

The airlines advocated for a reversal to the air service agreements to create a more balanced environment that benefits domestic airlines and better reflect the Single African Air Transport Market (SAATM) principles, particularly reciprocity, which means airlines from each country get similar benefits. It also said that agreements should encourage investment in domestic airlines and their expansion into international markets.

The AON further proposed a restriction of foreign rights, which is the cancelation of extra freedoms (like carrying passengers beyond their destination) granted to foreign airlines and encourage them to codeshare with domestic airlines instead.

It said: “Renegotiate existing BASA’s & MASAs in line with the provisions of SAATM, with emphasis on the principle of reciprocity to encourage increased investments in the sector. There should be immediate cancellation of all existing 8th & 9th freedom rights allocated to foreign airlines operating within the country and encourage such carriers to codeshare with domestic airlines.

“We call for the immediate renegotiation of all existing BASA’s & MASAs in line with the provisions of SAATM, with emphasis on the principle of reciprocity in favour of domestic airlines aspiring to expand operations into the international and sub-regional markets. Constitute a committee with membership drawn from key industry stakeholders, headed by IATA to review and update the industry civil aviation policy document in line with global standards and trends, and develop an industry 15-year strategic development plan for Implementation.”

Source:The Sun.

IATA Wings of Change Focus Africa: Speakers highlight role of aviation in improving connectivity, economic growth

The International Air Transport Association (IATA), on the first day of its Wings of Change Focus Africa conference, held in Johannesburg, South Africa, emphasized the need for African governments to take advantage of a strengthening aviation sector to maximize its benefits for economic and social development across Africa.

During a media briefing at the event, IATA senior VP for sustainability and chief economist Dr Marie Owens Thomsen described Africa as “hitting below its weight in terms of the global economy”.

She pointed out that, despite being home to about 18% of the world’s population, Africa contributes only about 3% of global GDP.

She added that improved connectivity, including through aviation, could go a long way in driving higher growth on the continent.

“Poor connectivity definitely equals poor economic outcomes.

“If we adopt aviation, and all forms of connectivity as a proper growth strategy, then we have a completely different picture of radical collaboration on this continent,” she said.

IATA Africa and the Middle East regional VP Kamil Al-Awadhi added that the Single African Air Transport Market, which is aimed at liberalising civil aviation across Africa, provides the continent with a “ready-made” mechanism to drive economic growth.

He noted, however, that few governments have taken the steps needed for its implementation.

“Non-compliance of bilateral air service agreements by African governments is a major obstacle to achieving seamless regional connectivity and growth in Africa’s aviation sector,” he said.

Meanwhile, Al-Awadhi also pointed out that African airlines were likely to earn a collective net profit this year for the second consecutive year.

He noted, however, that the anticipated $100-million profit translates into just $0.90 per passenger, pointing out that was below the global average of $6.14 per passenger.

IATA’s Focus Africa initiative seeks to provide a strategic framework to address the continent’s most pressing issues, paving the way for a robust aviation sector that can significantly contribute to Africa’s economic and social development.

“The path ahead is quite clear . . . We have to work together in a collaborative manner. We can overcome the obstacles before us and realize the full potential of Africa’s aviation.

“This is not just about transport. It’s about unlocking the future of the continent. Let us commit to this vision for the benefit of Africa’s nations, economies and people,” said Al-Awadhi.

Source: Engineering News.  

AirAsia X expands with new route to Nairobi, Kenya

AirAsia X (AAX) has announced a new route to Africa, connecting Singaporean travellers to Nairobi, Kenya, via Kuala Lumpur. The inaugural flight is scheduled for 15 November 2024, making AAX the only low-cost carrier in Malaysia to offer direct flights to Nairobi. This expansion follows a strong start to the year for AAX, with impressive financial results, high load factors, and regained market leadership.

Earlier in March, AAX also launched new flights to Almaty, Kazakhstan, marking its first entry into Central Asia.

Connecting Asia to Africa

The Nairobi route is a crucial link in connecting Asia to Africa, fostering stronger trade, tourism and business ties within the region. AAX will also offer a seamless Fly-Thru connection, creating a vital link between Kenya and 130 destinations across Southeast Asia, Northern and Central Asia, and Australia providing affordable and convenient travel options for all while reinforcing its commitment to global connectivity.

Nairobi, Kenya, is renowned for its lush greenery, expansive grass plains, and abundant wildlife, attracting tourists eager to see the near-extinct Northern White Rhino and the Great Migration in Masai Mara. The city offers breathtaking skylines, thrilling safari experiences, vibrant nightlife, rich cultural heritage, and diverse culinary delights, making it a captivating destination for travellers.

Strategic vision for global connectivity

Tony Fernandes, CEO of Capital A says: “We are thrilled to announce a direct new route, bridging Asia and Africa. This milestone, coming on the heels of our 15th consecutive win as Skytrax’s World’s Best Low-Cost Airline, embodies our mission to connect the world affordably. This new route not only opens up Asia to Africa but also has the potential to strengthen ties in tourism, business and trade between the two continents.

“It marks the beginning of a new journey into Africa, and while our roots are in Asia and Asean, our dream has always been to make Kuala Lumpur a global low-cost carrier hub. This expansion brings us closer to that vision, giving us a solid footing to build global connections and opportunities.”

Benyamin Ismail, CEO of AirAsia X adds: “Embarking on this new adventure into Africa is truly exhilarating, particularly in light of our significant growth trajectory earlier this year. This route presents excellent connectivity opportunities to other key markets we serve, especially in the Asean region.

“Travellers from Singapore can now journey more affordably to Kenya, with a convenient and smooth stopover in Kuala Lumpur. Kenya is a vibrant nation, home to millions of people and a rich tapestry of beautiful heritages and extraordinary sceneries. We look forward to further enriching the cultural and economic exchanges between these dynamic regions.”

Source:   Biz Community.

Jambojet Starts 4 Weekly Flights Between Zanzibar And Mombasa

NAIROBI, Kenya, July 2 – Jambojet yesterday began its first of four weekly flights between Zanzibar and Mombasa with an eye on tourists flying into the Tanzanian island.

The flights will depart from Mombasa to Zanzibar on Monday, Wednesday, Friday, and Sunday.

“Our new route starts at 24,420 Kenyan shillings, (495,000 Tanzanian shillings) for a round trip,” Jambojet CEO Karanja Ndegwa said yesterday during the inaugural flight from Moi International Airport in Mombasa to Zanzibar’s Abeid Amani Karume International Airport (AAKIA).

“As a leader in low-cost aviation, we pride ourselves on our competitive fares and extensive network, enabling more people to travel across East Africa This route  reflects our goal of making air travel accessible to everyone,” Ndegwa added.

The route will be served by a De Havilland Dash 8 400 aircraft capable of carrying 78 to 82 passengers.

The subsidiary added that the route also offers connections to Nairobi, Dubai, Frankfurt, Milan, and other destinations.

“On behalf of the Kenyan government, I am delighted to be part of today’s launch of this new route operated by our airline, Jambojet, from Zanzibar to Mombasa,” said Issac Njenga, Kenya’s Ambassador to Tanzania.

“This step is crucial not only in facilitating quick and affordable air travel but also in strengthening commercial, tourist, and cultural ties between Tanzania and Kenya,” Njenga added.

“By enhancing connectivity, we are fostering development along the East African coast.”

 Since it was started in 2014, Jambojet has served over 7.5 million passengers, accounting for more than 54 percent of the domestic air travel market share in Kenya.

The airline also flies to Nairobi, Kisumu, Eldoret, Lamu, Malindi, Diani, and Goma in the eastern part of the Democratic Republic of the Congo (DRC).

“Mombasa is a key city for tourism in Kenya. “Jambojet is opening up many socio-economic opportunities for Zanzibar and Mombasa. We expect more tourists and traders to benefit from this affordable and fast direct flight,” said Abdulswamad Shariff Nassir, Mombasa Governor.

 Source: Capital Fm

AFRAA Projects a 15% Rise in Passenger Traffic for African Carriers in 2024

The aviation industry experienced a dynamic start to 2024, grappling with a multitude of challenges and opportunities. Despite ongoing post-pandemic hurdles, the airline sector sustained its recovery momentum this year, witnessing a resurgence in passenger demand.

Africa witnessed a 6% increase in available seats, rising from 15.1 million in May 2023 to 15.9 million in May 2024, attributed to by the introduction of new routes and increased flight frequencies. During the same period, ASKs (Available Seat Kilometers) surpassed May 2023 levels by 12%.

African carriers accounted for 48.7% of the international capacity and 35.4% of the intercontinental capacity.

AFRAA projects a 15% rise in passenger traffic for African carriers in 2024 compared to 2023. Regarding capacity allocation between African and non-African operators on International routes (regional and intercontinental), AFRAA estimates a split of 51.3% and 48.7%, respectively. However, in regards to intercontinental routes, Africa accounts for only 35.4% of capacity, with non-African operators holding the majority share at 64.6%.

In this season, intra-Africa connectivity surged across regions, with major hubs such as Addis Ababa, Nairobi, Abidjan, and Lome witnessing a notable uptick in connectivity.

African airlines are experiencing enhanced revenue performance, following the growth in traffic. AFRAA’s estimate shows operating revenue for March 2024 at US$1.74 billion, a significant increase from US$1.39 billion in March 2023, marking a 26% growth.

Global price of Jet A1 continues to fluctuate from week to week. The global average jet A1 price ended the week of 24th May 2024 down 0.7% at $99.85/bbl.

REGULATORY/INDUSTRY AFFAIRS

In Nigeria, the Nigerian Aviation Handling Company (NAHCO) has raised concerns over the detrimental impact of excessive airline taxes, which have made Nigerian airports some of the most expensive globally for foreign airlines to operate.

Egypt is making strides towards sustainable aviation with the Egyptian Petrochemicals Holding planning to launch the country’s first sustainable aviation fuels (SAF) production facility by 2025.

In Kenya, the Kenya Civil Aviation Authority (KCAA) is leading efforts to validate draft aviation regulations aimed at enhancing safety and efficiency, with active stakeholder consultation. However, the Kenyan government’s proposed Finance Bill 2024, which includes VAT on aviation equipment and supplies, is causing concern as it deviates from global best practices where aviation is typically VAT-exempt.

In South Africa, the clarification received on the Broad-Based Black Economic Empowerment (B-BBEE) Act is that the Act is targeted at enhancing and encouraging procurement of goods and services from B-BBEE compliant companies and the requirement to have foreign operators to be B-BBEE certified is impractical. Foreign operators in South Africa are encouraged to seek further clarification with the BEE Chambers on applicability to their respective airline. Additionally, the Department of Forestry, Fisheries, and the Environment is reviewing aviation meteorological service tariffs for the next three years, with new rates effective from April 2024 to March 2027.

In the United States, major airlines are challenging a new regulation by the US Department of Transportation (DOT) that mandates upfront disclosure of ancillary airline fees. This rule aims to enhance transparency for consumers regarding additional travel charges.

Singapore Airlines has revised its seatbelt and meal service policies following fatal turbulence. Hot meal service will now be suspended when the seatbelt sign is on, and cabin crew will ensure all items and equipment are secured during poor weather conditions.

The latest report on Blocked Funds is that Nigeria has settled and released all funds that had been blocked in Nigeria to the airline operators.

Source: Airspace-Africa

New study highlights unserved air routes to boost African connectivity.

Airbus has released a new study highlighting several unserved air routes within Africa. These routes, the study suggests, could significantly improve travel connections for passengers, stimulate economic growth in local regions, and generate substantial revenue for airlines. The study builds on data from Airbus’s latest Global Market Forecast (GMF).

Several of the top unserved routes identified in the analysis are concentrated in cities such as Lagos, Cape Town, Nairobi, Dakar, and Douala. Airbus also touched on strategic recommendations to capitalise on the opportunities of a more connected continent as well as Airbus’ capabilities to help realise this potential.

Identifying critical routes

“Despite significant traffic between certain city pairs, some identified routes still lack regularly scheduled non-stop flights. Factors such as restrictive bilateral air service agreements, economic variables, and challenges with capacity, frequency and operating cost efficiency contribute to these routes remaining unserved,” said Geert Lemaire, market intelligence and consulting director, Airbus.

“With our capacity to make analyses about route and network development potential in-house, Airbus remains committed to partnering with airlines across Africa to identify optimised fleet solutions in line with network development requirements that further stimulate the continent’s air transport industry growth and improve connectivity for travellers.”

Growth and forecast

The forecast, meanwhile, predicts a 4.1% growth overall in air traffic over the next 20 years, resulting in an anticipated need for 1,180 new aircraft by 2043. Meanwhile, the continued growth of the aviation sector in Africa is expected to result in 3.3% real GDP growth on the continent, well above the 2.6% global average.

This growth is ratified by data from Airbus’ Global Services Forecast, which estimates that Africa will need to introduce 15,000 more pilots, 20,000 technicians and 24,000 cabin crew to meet the surge in air travel demand.

Source: Nile Post.