African airlines are set to see a slight improvement in their financial performances in 2022 from 2021, as countries continue to vaccinate their populations and open up their economies.

According to the International Air Transport Association (IATA), African carriers will recover from a 1.9 billion U.S. dollar loss in 2021 to a 1.5 billion in 2022.

IATA has attributed this slow pace of recovery in the industry to low vaccination rates across the continent. The body says the projected improvement is built on the expectation of some recovery in intra-Africa travel and travel to some tourist destinations with relatively higher vaccination rates.

While Africa has seen a recent rise in vaccine arrivals, most countries struggled to obtain the vital jabs in the period leading to July, leaving the continent vulnerable to reeling from the pandemic effects for longer.

Like most regions globally, Africa’s aviation sector took a hit during the COVID-19 pandemic, as countries shut their borders and imposed strict travel restrictions in efforts to curb spread of the virus.

Source: CGTN

To mark the official opening of the Expo 2020 Dubai and the African Union Pavilion located in the Opportunity District, the Chairperson of the African Union Commission (AUC), H.E. Moussa Faki Mahamat congratulated the Government of the UAE on the inauguration of the first world expo to be hosted in the MENA region, and added that the African Union welcomes the opportunity to share its vision and the aspirations of the African people on this global platform.

“We plan to share not only our dynamic heritage, but give the world an opportunity to engage with Africa as an investment partner” he remarked.

The Chairperson also expressed his well wishes to the AU team in the United Arab Emirates, who are assigned to represent the Commission and the continent at the world Expo.

“I wish the team all the best as they work to share Africa’s story as best as we know it; creating a narrative that is true and influential, because we best know the potential of the continent” added the Chairperson of the African Union Commission.

The team on the ground is led by Dr. Levi Uche Madueke who was appointed by the AUC Chairperson, as the AU Expo Commissioner General. Dr. Madueke will be supported by Mr. Charles Newton Chiumya who serving as the Deputy AU Expo Commissioner General, whilst Mrs. Leslie Richer serves as the AU Pavilion Director.

H.E. Mahamat also stated that the presence of the AU at the Expo 2020 Dubai, offers an opportunity to further entrench the relationship between Africa and the United Arab Emirates, by leveraging on the longstanding economic partnerships in the two regions. He concluded by noting that this is also the opportune time to “showcase the continent’s commitment to sustainable development through the AU Agenda 2063 as well as the exploration of potential partnerships required for its socio-economic transformation.

The AU presence at the Expo 2020 also provides an opportunity to be a part of the created innovative solutions, following consultations with the AU Member States, on how to increase the quality of life and well-being of all African citizens, e.g. access to market through regional integration, and world class infrastructure to enhance accessibility and mobility of persons and goods to facilitate trade, which will ultimately increase economic growth. Africa is open for business with a myriad of opportunities to invest in building the Africa we Want.

“Africa is ready to do business and we want to position the continent as the place to be for all our international investors as well as those interested in the continent’s future. This is the perfect time for us to not only be a part of the conversations, but lead the conversations, as a continent beaming with a lot of untapped potential and resources” said Dr. Madueke.

Throughout the six month-long Expo, there are strategic events that will help shine the light on key African activities as identified by the African Union (AU). These events are instrumental in driving the continent towards the successful realisation of the continental strategic goals as detailed in the Agenda 2063 framework. Dr. Madueke and his team will be based in the United Arab Emirates to ensure that the continent is well represented alongside the African Union Member States, and helping create engagement opportunities that will drive investment and economic opportunities for the African people.

The public, media and all other interested parties can keep up-to-date with the latest out of Dubai as well as get all the necessary information surrounding the AU led activities/events by visiting the official AU at Expo 2020 website.

Join the conversation using #AUatExpo2020 #theAfricawewant

Source: Africa News

Africa’s airline industry flies in the context of a big dilemma as most are in the loss-making zone or near-collapse despite an almost impossible environment to consolidate their operations and trim losses.

Various carriers from across the continent are now expressing willingness to join hands as the magic trick that could cut operation costs, streamline governance and increase profitability, but the many barriers appear heavy for realisation of this dream.

Last month, a workshop bringing together a group of airlines from around the continent to reflect on why Africa has had few partnerships and limited airline consolidation, exposed huge gaps that have made it impossible for carriers, a tactic that has been adopted by the industry on other continents.

Players blamed political differences, regulatory unfriendliness towards the industry and corruption among the main factors hampering Africa’s carriers from coming together.

“The aviation sector is reeling from the impacts of Covid-19 pandemic. We need to devise new approaches of doing business in the face of increasing concerns on the sustainability of African airlines. A crucial element in the success of the African airlines is consolidation and collaboration. The engagement of States, airlines and all the relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa,” said African Airlines Association (Afraa) Secretary General, Mr Abdérahmane Berthé.

Kickbacks

His call came as other stakeholders highlighted the many challenges African airlines undergo even from within the continent, as many jurisdictions still remain rigid, which has been extended to global airlines from other regions.

Stakeholders complain that governments are riddled with red tape, where airlines’ efforts to expand to such markets are always frustrated as some regulators ask for kickbacks.

“The governments are putting too much resistance on partnerships with African airlines. We have also witnessed cases of leaders asking for delay of flights, seeking favours for their relatives to be employed and some countries were not open to providing traffic lights. It took us one year to obtain an operating license to Dakar, Senegal,” said Busera Awel, Ethiopian Airlines’ Group vice president in charge of strategic planning and alliances, while explaining challenges the airline has faced in its expansion drive.

Yet the continent’s airline industry controls only two per cent of global air traffic, according to Afraa, despite the huge potential it portends with most of the African markets exhibiting fastest growths.

Afraa also reports that Africa’s passenger traffic has consistently grown over the past decade and before Covid-19 was projected to hit 3.4 per cent on average over the next two decades. In 2019, African airlines carried 95.6 million passengers, which dropped by 63.7 per cent after the onset of Covid-19 last year.

Before the pandemic, the continent’s passenger operations were 20 per cent intra Africa, 38 per cent domestic and 42 per cent intercontinental.

Last year domestic operations took the leading role as jurisdictions across the world placed strict measures to limit movement, with 43 per cent against intercontinental operations that constituted 38 per cent of the industry’s operations.

“Experience has shown that well-executed consolidation is among the building blocks of a resilient and sustainable business operation. The ripple effect of strengthened collaboration and partnerships of airlines will increase the industry’s contribution to sustainable development in Africa and of course the longevity and the stay of this industry in the continent,” said Mr Allan Kilavuka, the Kenya Airways (KQ) managing director.

Stakeholders tabled consolidation options such as operating on an interline agreement, codeshare, global alliance, joint venture through pooling revenues and costs, equity partner where one airline buys stake in another and merger, which provides for unified management of all commercial operations.

Data has shown that market share and profitability of consolidated airlines has consistently increased overtime, and that Africa remains the least consolidated of the aviation markets.

But borrowing from challenges experienced by collapsed airlines that attempted consolidation in the continent and at least issues raised by Ethiopian Airlines- one of the best performing in Africa, the cure for the African airline problem lies beyond the industry, since it will require governments’ cooperation and strong financial and governance support.

For instance, Air Afrique which was a consolidated airline formed by at least 11 West African countries and which operated between 1964 and 2002, collapsed because of heavy political interference, despite having improved connectivity, socio-economic integration, tourism and fast tracked development in member States.

“I believe that the concept of Air Afrique as a multinational remains relevant to date, but political interference is something to watch. This is to be achieved through appropriate governance structure,” said CDA Aviation CEO Chamsou Andjorin.

Regions such as North America and Middle East whose airline markets are highly consolidated are reported to operate cost-effectively with dominant market shares, while Africa which is least consolidated is ranked the worst.

Financing a project to consolidate African airlines would also be a big headache for the continent were it to take that route, since banks have set strict requirements- including the project’s financial viability and an assessment of individual airlines’ financial health. Most of the airlines in the continent operate on losses and have been kept alive by government bailouts.

Feasibility studies

AU has called on banks to finance feasibility studies on the project.

Even as this happens, various airlines continue to form partnerships in their individual capacities to boost their chances of survival, while pointing to the possibility that a pan African airline group could be in the offing.

Just days ago, KQ entered into a cooperation agreement with the South Africa Airways (SAA) to boost passenger traffic, cargo opportunities and general trade.

But a statement by the airlines also indicated that the deal was “with a longer-term view to co-starting a pan-African Airline Group that in time will enhance mutual growth potential between the two carriers.”

Mr Romain Ekoto, the African Development Bank (AfDB’s) Chief Aviation officer; Infrastructure and Urban Development, however notes that even though the bank would play a critical catalytic role in easing the industry’s access to financing and spearhead a feasibility study, clear commitment and guarantee from governments and the financial health of airlines would be a crucial thing to consider before the bank putting its money into such a huge project.

Source: Nation

Airlines reported a surge in bookings to South Africa ahead of the UK government’s dramatic travel review announcement on Thursday.

Virgin Atlantic told the Evening Standard it has seen a 150 per cent jump in bookings to the destination in the past few days, after experts tipped the country to be among dozens of countries likely to fall off the UK travel red list.

Travellers are especially keen to lock in flights around Christmas time, in South Africa sweltering summer, when airfares usually rocket to several thousands pounds.

Speculation had been growing around other red list countries like Brazil and Mexico, which industry experts thought would also be removed from the list.

Transport Secretary Grant Shapp announced on Thursday that 47 countries are coming off the red list, including a string of popular holiday destinations including South Africa, Argentina, Cuba, Thailand and Tunisia.

Being take off the red list means returning holidaymakers will not have to stay in quarantine hotels for 11 nights at a cost of over £2,200.

Virgin Atlantic operates services from Heathrow to Cape Town and Johannesburg three times a week. A spokeswoman for the airline said: “In advance of the Red list review today, we have seen our bookings to South Africa increase by 150% over the past four days, compared to the four days prior.

“The majority of bookings are for passengers originating from the UK however we are also seeing an increase in passengers originating from South Africa as well. The new bookings are for travel in November and December this year in particular around the Christmas period.”

In a further easing of restrictions, the Government has lifted its advice against non-essential travel to 32 countries and territories.

Bangladesh, Fiji, Gambia, Ghana and Malaysia are among the locations for which travel advice based on the risk of coronavirus has been relaxed, the Foreign, Commonwealth and Development Office (FCDO) said on Wednesday.

Britons will not longer be told to avoid all but essential travel to non-red list countries on Covid-19 grounds except in “exceptional circumstances” such as if the local healthcare system is overwhelmed, the FCDO added.

This should make it easier for people visiting those locations to obtain travel insurance.

Source: Evening Standard

The UK High Commission has announced that vaccinated Kenyans traveling to the UK will no longer have to quarantine.

UK High Commissioner Jane Marriott on Thursday said this takes effect on October 11.

Vaccinated Kenyans will also not need to take a Covid test upon departure.

A spokesperson for the British High Commission said:

“We are pleased to announce that from Monday, October 11, those vaccinated in Kenya will be able to travel to the UK without having to undertake any quarantine or take a Covid-19 test before departure. Thanks to our strong partnership with the Ministry of Health, we have completed the process to recognise vaccine certificates from Kenya.”

Marriott added that:

“This is great news for our peoples, Kenya-UK trade, and the tourism sector as we move closer to getting back to normal.”

This comes as the UK’s Secretary of State for Transport Grant Shapps announced that he will be making changes to the travel list, so that travelers visiting England have fewer entry requirements, by recognising those with a fully-vax status syringe from 37 new countries.

In his remarks, Kenya’s High Commissioner to the UK Manoah Esipisu said that the latest step is a boost to tourism and business travel.

Before traveling to England, fully vaccinated Kenyans will need to enter their Covid-19 test booking reference number on their passenger locator form.

After arriving in England, the travelers must take a Covid-19 test on or before day two.

The travelers must also book the Covid test if they will be arriving in England from abroad.

Also, travelers can compare and choose a test provider based on cost and whether they are available in their region.

“The government does not endorse or recommend any specific test provider – you should do your own research about them and their terms and conditions.”

Source: The Star

Kenya is seeking new aviation partnerships that will see Nairobi reach out to the Caribbean market, as President Uhuru Kenyatta argued for more trade, debt relief and vaccine equity for pandemic recovery.

On Wednesday, Kenya inked bilateral deals on aviation cooperation, environmental conservation and trade and investment, on his second day of his visit to the Caribbean island.

The arrangements touched on bilateral air services agreement, the first step for the two countries to allow airlines to enter cooperation and connections, and ease travel between the two regions.

Kenya’s Foreign Affairs Cabinet Secretary Raychelle Omamo signed the deal on behalf of Kenya while Barbados Minister for Tourism and International Transport Lisa Cummins represented her country at a ceremony witnessed in Bridgetown by President Kenyatta and Barbados Prime Minister Mia Amor Mottley.

The two countries have had no direct connection for flights and travellers heading either way, and have to mostly transit through the United States.

The signing of the deal may not cut the length of the trip, but it gives airlines like Kenya Airways an easier access to the Caribbean through future code sharing.

The two sides also agreed to establish an entity called a Joint Committee on Trade and Investment, which will be the forum in which future trade agreements or negotiations can happen.

Though traditionally not trading partners, Kenya and Barbados say they are working on their historical connections on a common African ancestry to improve business ties.

President Kenyatta says the African continent and the Caribbean Community and Common Market (CARICOM), the local bloc, can improve ties based on trade, tourism, sports and cultural fetes.

“This is one area where we are hoping to find great success that will make it easy for the business men and women, those seeking to re-engage with the African continent, to be able to do so without having to wait for visas from third parties,” President Kenyatta said.

“I think that all of us recognise now that we are in a marathon and not a sprint. And that we have had, in the past, to become resilient, and this generation of Kenyans and Barbadians must be resilient to the times whether those times are affected by the pandemic or whether they are affected by the climate,” Ms Mottley said, referring to the pandemic effects.

President Kenyatta also used the visit to reiterate his call for supportive debt relief and vaccine access for poor countries, arguing they will be the two most important areas to help the world fight the Covid-19 pandemic.

He told an audience on Tuesday that the world must learn from the “flawed” multilateral system that has largely failed to bring on board everyone, but argued developing countries will bank on reduced debt burdens, more vaccines and easier channels of trade to recover.

Source: The East African

The Minister of Foreign Affairs, Gen. Jeje Odongo has revealed that Uganda Airlines is planning to launch direct flights from Entebbe to Guangzhou, in China.

Odongo made the announcement on Tuesday during the virtual celebrations for the 72nd Anniversary of the Founding of the People’s Republic of China, also known as National Day the People’s Republic of China.

“The national carrier, Air Uganda plans to launch direct flights from Entebbe to Guangzhou once the regulatory procedures are completed. With the re-establishment of Uganda Airlines, we shall have direct connectivity between our two countries, which is a great opportunity for business, and people-to-people interaction,” he said.

Odongo also said that Uganda is committed to working with China to expand its economic and commercial ties especially in areas such as tourism, investment and trade.

“The potential for cooperation in these areas is much greater than it is now. We are ready to work with you on how to facilitate greater access of Ugandan products to the Chinese markets, greater access of Chinese tourists visiting Uganda, and facilitating more investments from China to Uganda,” Odongo told the Chinese Ambassador to Uganda, H.E Zhang Lizhong.

The Minister said the private sector is key in these efforts, and therefore, there is a need to encourage more business-to-business interaction between both countries.

Source: Red Pepper

The International Air Transport Association (IATA) called on the South African government to step up its support for the air transport industry amid the COVID-19 crisis to facilitate the recovery of industries supported by aviation such as travel and tourism and unlock the job opportunities and other economic benefits they provide.

“South Africa’s air transport and tourism sector’s contribution to GDP all but evaporated with the COVID-19 crisis which coincided with the closure of one airline and the deep restructuring of two others. In 2019 aviation supported 364,000 jobs in South Africa. Because of COVID-19, about 298,000 of those jobs have been put at risk. It’s a significant impact for over 80% of jobs to be lost if connectivity is not restored. As South Africa’s foreign trade and tourist markets begin coming back online, it is crucial that steps are taken to ensure no more jobs or opportunities are lost,” said Kamil Al Awadhi, IATA’s Regional Vice President for Africa and the Middle East.

Key priorities to support and sustain the recovery of South Africa’s air transport and tourism sectors include:

Financial Support and Relief to the air transport industry: South Africa’s entire airline industry requires support and financial relief if it is to fulfill its role as an economic enabler and job creator.  Government has several levers at its disposal to assist all carriers and service providers, both public and privately-owned.  Besides cash or financial guarantees, they include reductions, waivers, and discounts on user charges and taxes on air travel and aviation and wage subsidies.

Adopting an inter-operable digital platform for COVID-19 testing and vaccination certificates: As passenger numbers increase in the recovery, digitally managing travel health credentials will be essential to avoid queuing and crowding at airports. IATA Travel Pass and the African Union’s Trusted Travel Pass are both tools that can help governments efficiently and conveniently verify traveler health credentials.

Increasing intra-Africa connectivity: The African Union’s Single African Air Transport Market (SAATM) is intended to unlock travel and economic benefits within the continent. An IATA-commissioned econometric study found that the full implementation of SAATM across the continent would create 14,500 new jobs for South Africa and add US$283.9 million to its GDP.

IATA also urged the South African government to ensure the effective functioning of the South African International Air Services Licensing Council to enable the granting of operating licenses for new routes and increased frequencies on existing routes to South African carriers.  

“The prolonged absence of a functioning South African International Air Services Licensing Council is exacerbating the crisis by preventing new routes and competition, further curtailing options for international travelers, inhibiting trade, and delaying the creation of jobs,” he added. 

Equitable distribution of COVID-19 vaccines

With low vaccination rates across Africa, the continent and its people are vulnerable and the economic recovery from COVID-19 is at risk. Moreover, with more countries lifting travel restrictions for those vaccinated, the freedom of movement will be limited until vaccines are universally available. With 13.9% of South Africa’s population fully vaccinated, the challenge is particularly acute.

Source: Tornos News

The first world fair to be held in the Middle East, Expo 2020 Dubai, opened on Thursday with a lavish ceremony of fireworks, music and messaging about the power of global collaboration for a more sustainable future.

Stars headlining the opening ceremony, which was projected in public spaces around the UAE, included Italian tenor singer Andrea Bocelli, British singer Ellie Goulding, Chinese pianist Lang Lang and Saudi singer Mohammed Abdu.

Dubai, the region’s tourism, trade and business hub, is hoping to boost its economy by attracting 25 million business and tourist visits to the world fair which has been built from scratch on 4.3 sq km (1.7 sq mile) of desert.

Many countries and companies are also looking to the expo – the first major global event open to visitors since the coronavirus pandemic – to boost trade and investment.

The full expo site will open its doors to exhibitors from almost 200 countries on Friday after being delayed for a year by the pandemic. Chosen eight years ago to follow the 2015 Expo in Milan, Italy, the event cost around $6.8 billion.

Dubai says it wants the Expo, an exhibition of culture, technology and architecture under the banner “Connecting Minds and Creating the Future”, to be a demonstration of ingenuity, and a place where global challenges such as climate change, conflict and economic growth can be addressed together.

The event will probably contend with a global reluctance to travel and many events will be streamed live online. But Expo still officially expects to attract more visits than Milan received and more than twice the population of the UAE.

“We are quite confident…that by being responsible in how we manage the situation with COVIV but also in how we put forward an exciting program for visitors, we will hopefully be able to thread the needle by opening up but remaining at the same time conservative and keep public safety first and foremost,” Reem Al Hashimy, Expo 2020 Dubai’s Director General told Reuters.

The Gulf state has relaxed most coronavirus restrictions but Expo requires face masks to be worn and for visitors over 18 to be vaccinated against, or test negative for, COVID-19.

Before the pandemic, the consultancy EY forecast that the Expo would over the course of its six months contribute 1.5% of the UAE’s gross domestic product.

Source: Reuters

Kenya Airways (KQ) and South Africa Airways (SAA) are considering a Pan-African Airline Group to fight back foreign carriers’ dominance of intercontinental traffic in the region.

This is a revisit of a similar plan eight years ago that sought to bring together KQ, SAA and Ethiopian Airways during the 44th annual meeting of the African Airlines Association (AFRAA) in South Africa. 

The memorandum between Kenya’s national carrier and the South African counterpart touches on strategic positioning in global aviation, diversifying earning streams, and reinforcing regional partnership in Africa through diplomatic and commercial relations. 

This is expected to spur an increase in passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.

KQ chief executive Allan Kilavuka said the future of aviation and its long-term sustenance is hinged on cooperation.

”This will enhance customer benefits by availing a larger combined passenger and cargo network, fostering the exchange of expertise, innovation and adopting home-grown solutions to technical and operational challenges,” Kilavuka said. 

He added that KQ which is in financial turmoil is committed to its turnaround strategy.

”The pursuit of partnerships is one of the core strategic pillars that shall transform the airline by ensuring its financial viability while offering world-class services in Africa and the world,” Kilavuka said. 

The airline posted an Sh11.5 billion loss for the half-year to June with turnover during the period dipping nine per cent to Sh27.3 billion compared to Sh30.2 billion same period last year.

This was mainly on reduced passenger numbers in the wake of the Covid-19 pandemic which continues to restrict global and domestic air travel.

SAA’s Interim CEO Thomas Kgokolo said this cooperation, which includes demand recovery and other cost containment strategies, will aid the recovery of both carriers in an increasingly competitive African airline environment.

”It will also enhance related Kenya and South Africa tourism circuits, which sectors account for significant portions of respective country growth domestic product, benefiting from at least two attractive hubs in Johannesburg, Nairobi and possibly Cape Town,” Kgokolo said. 

The after-effects of Covid-19 on the aviation industry have seen airlines rethink strategy, with the African Airlines Association (AFRAA) calling on members to unite. 

Other continents are already reaping dividends of consolidation.

Europe has for instance consolidated to three major airline groups – Lufthansa, Air France-KLM and British Airways/Iberia parent IAG – in a region of 27 countries.

In the United States, the United and Continental have come together along with Delta and Northwest. In Latin America, there have been mega-mergers in recent years with LAN and TAM and with Avianca and TACA.

According to AFRAA, Kenya’s national carrier, Ethiopian, and SAA currently offer about 650,000 weekly seats. This would make it roughly the 30th largest airline group in the world, slightly behind Avianca-TACA.

The latest report by the association shows that while the big three airlines are big in the context of the African market, globally they are small relative to giant competitors such as Emirates, Air France-KLM and British Airways. 

Even if Kenya Airways, Ethiopian and SAA were to combine, they would account for just 37 per cent of Emirates’ revenue and about half the number of passengers.

One of the biggest challenges facing the industry is the lack of open skies.

Each African state negotiates its own bilateral agreements which have led to a highly restricted intra-Africa airspace but competing foreign airlines offering inbound tourism and trade connections being granted significant capacity rights.

”African airlines have the capacity but are not able to deploy it to access most of the continental market. Intra-Africa air travel accounts for just 26 per cent of total air passengers while regional trade is only 10 per cent,” AFRAA’s report reads in part. 

Source: The Star