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Africa Aviation Summit: Air Finance Africa Conference & Exhibition
Air Finance Strategies for Recovery and Growth

10 - 12 May 2023  |  Johannesburg, South Africa

Prospects for Airline Co-Operation and Consolidation in Southern Africa

11 May 2023. Edited from Romuald Touembou Ngueyap's LinkedIn post at the event. 

Aaron Munetsi, AASA CEO, presented his views on finance strategies for recovery and growth, and the propects for airline co-operation and consolidation in Southern Africa at this year's African Aviation Summit - Air Finance Africa

Highlights

  • Africa contributes only 2,1% of Aviation market share (2022).
  • 12 African states do not have international flights by African carriers.
  • 15 African states have carriers only serving intra-African routes.
  • Only 5 African states have more than 100 international flights daily.
  • Only 4 African states have more international destinations than within Africa.
  • Among 51 Africa carriers, only 3 were cash-positive with 1 profitable (2019).
  • 36 African Union Member States are current signatories of the SAATM Solemn Commitment. This represents 80% of Africa's market: 42 airlines
  • AFCAC launched the SAATM Pilot Implementation Project (PIP) intending to accelerate the implementation of the YD and SAATM commitment. PIP has 19 African states involved to-date.
  • By 2030, if SAATM is well-implémented, it could lead to 200 new City pairs, 12% global traffic growth, and 15% tourism increase.

SAATM is not just about African carriers getting fifth freedom rights – it’s also about the economic benefits for the member states through the establishment of intra-African networks. Aaron Munetsi, AASA CEO

Mr Munetsi urged that now is the time to seize the opportunity to reset: 

  • Airlines should be included in the formulation of policy, regulations and infrastructure development.
  • A progressive and dynamic regulatory framework will enhance the business environment.
  • Reduce and/or elimate excessive taxes and charges.
  • Encourage collaboration and airline alliances, codeshares, Special Prorate Agreements (SPA),  interline, joint-ventures and mutually beneficial commercial agreements.
  • Investment in aviation infrastructure, development, technology and maintenance.