The African Airlines Association (AFRAA) > Blog
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Implementing cost-effective solution to reduce fuel costs – AFRAA Fuel Purchase Committee 2024 tender programme on course

AFRAA Fuel Committee members converged at the AFRAA headquarters in Nairobi this week for the first round negotiation meetings for the year 2024/25 programme tender process.

Established in 2012, the AFRAA Fuel Project is the vehicle which members use to coordinate, facilitate and manage the joint purchase of fuel enabling participating airlines to reduce cost of fuel and favorable terms achieved through economies of scale. Currently there are 14 participating member airlines including:

  1. Air Botswana
  2. Air Burkina
  3. ASKY Airlines
  4. Astral Aviation
  5. Camair-Co
  6. Ethiopian Airlines
  7. Express Air Cargo
  8. Kenya Airways
  9. LAM-Mozambique
  10. PrecisionAir
  11. RwandAir
  12. South African Airways
  13. TAAG-Angola Airlines
  14. Uganda Airlines

The fuel programme, which runs on an annual basis, has achieved significant cost savings to the participating airlines since its establishment.

 

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Safety first, Connectivity and Route Development, Sustainability of African Airlines –  our key priorities  

 

Abderahmane Berthé – Secretary General – AFRAA intervention at the Embraer Airline Business Seminar 2024

Mr. Abderahmane Berthé – Secretary General – AFRAA articulated AFRAA insights in a panel discussion at the Embraer Airline Business Seminar 2024 in Cape Town – South Africa. The Seminar was held under the theme: “Accelerating Africa’s Opportunities”

Themed, “Pan-African Aviation Leadership – Beyond Borders”, the panel covered:

  1. The role of various business model airlines in shaping intra-connectivity across Africa.
  2. challenges & opportunities African airlines need to navigate through.
  3. Partnerships and collaborations intra-regionally and beyond Africa’s borders.

On measures to address the market challenges: cost environment, blocked funds, market access, Mr Berthé highlighted the 3 main priorities of AFRAA for 2024 include:

  • Safety first in African airlines’ operations
  • Connectivity and Route Development
  • Sustainability of African Airlines

On airline collaboration and Consolidation in Africa which has been a trend in other continents, aimed at creating more resilient and competitive carriers, Mr Berthé highlighted that from comparative studies that over the past 15 years, the African continent has had the lowest level of market consolidation compared to the other regions in the globe. He added that a crucial element in the success of the African airlines is consolidation and collaboration.
Some of the barriers to airline consolidation highlighted in Africa include:

  • Cases of failure of Legacy merger attempts worldwide
  • Aero political barriers
  • Huge cross–border capital investment
  • Potential need for big cost cuts and asset reallocation
  • Cultural barriers

“At AFRAA, we think that the ultimate constitution of an African Airlines Alliance can benefit to airlines and passengers. Because of the current lack of cooperation amongst African Airlines despite AFRAA efforts, we think that it is better to go step by step. The AFRAA Route Network and Cargo Committee addresses this. The Committee is aimed at reviewing options for network coordination and schedule harmonization to address some of the challenges of dwindling traffic, network connectivity and schedule alignment. The Committee facilitates easier market access at minimal costs, thus generating incremental revenue, stimulating traffic growth and increasing aircraft utilisation and flights connectivity for participating Airlines.” he stated.

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Coming in May – Convention to Shape the Future of Africa’s Aviation and the First-Ever Safety Summit in Africa!

The 12th Aviation Stakeholders Convention will be staged from 12-14 May 2024, at the Ethiopian Skylight Hotel in Addis Ababa, Ethiopia. This year’s Convention is proudly hosted by Ethiopian Airlines under the patronage of the Government of Ethiopia.

Held under the theme: “Beyond connecting African aviation”, the Convention is expected to attract over 500 high profile delegates from the aviation industry in Africa, Europe, Middle East, Asia and North America. The Convention is the industry’s ideal platform to drive growth opportunities and deliberate on the developments of African aviation industry.

AFRAA, in partnership with the Flight Safety Foundation (FSF), will stage the Inaugural African Safety & Operations Summit on 15 May 2024. The event will be organized back-to-back with AFRAA’s Aviation Stakeholders Convention taking place from 12 – 14 May at the Skylight Hotel in Addis Ababa – Ethiopia. The theme of the Summit is: “Championing Africa aviation safety together”.

Event Programme and RegistrationDetails regarding the Convention programme, registration are available from the Convention website: https://cvent.me/qLq5gl .

Marketing OpportunitiesThe Convention and Summit offer excellent visibility and marketing opportunities through Sponsorship and Exhibition. For more information, please contact Maureen Kahonge: mkahonge@afraa.org +254725500470

Enquiries and InvitationsFor enquiries on registration and invitation, please contact Stella Kyalo: mkyalo@afraa.org  for more information.Looking forward to meet you in Addis Ababa – the land of origins – for an exciting Convention and Safety Summit!

Register Here

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The SAATM Capacity Building Workshop for Airlines kicks off in Nairobi

AFRAA Secretary General – Mr Abderahmane Berthé, makes opening remarks at the start of the SAATM Capacity Building Workshop for Airlines. The Workshop was officially opened by the African Union Commission’s Ag Head of Transport and Mobility – Mr Eric Ntagengerwa.

In his intervention, Mr. Berthé thanked the AUC, the AFCAC and the UN-ECA for their efforts towards the effective enforcement of SAATM through:

  • The installation of the Dispute Settlement Mechanism (DSM) secretariat in Dakar during the last quarter of 2023.
  • and the ongoing process of appointment of the members of the DSM Administrative Council.

“It is critical to ensure that the decisions of the future Administrative Council will be binding to all parties. Otherwise, we will still depend on the goodwill of states to implement SAATM.” Mr. Berthé highlighted.

He urged stakeholders to coordinate efforts to make air travel affordable for African citizens. This is the reason for the African Aviation Industry Group (AAIG) to organise the Air Transport sustainability LAB that was hosted in Nairobi by AFRAA in June 2022. “We need to continue addressing the main challenges which our industry is facing. Together we will be stronger.” He added.

The capacity building Workshop, which is mainly on SAATM Regulatory Instruments, will be used to create awareness, and present all the regulatory text (Powers, Functions and Operations of the Executing Agency, Consumer Protection Regulations, the Competition Regulations, the Dispute Settlement Mechanism and the revised African Civil Aviation Policy (AFCAP).

The aim is to empower operators on their rights, obligations and opportunities in a SAATM environment. The workshop will also present the Key Performance Indicators for the implementation of SAATM and encourage eligible airlines to work together to expand their Intra-Africa operations.

The 3-days Workshop is taking place from 18-20 March 2024 at the Kenya Civil Aviation Authority’s (KCAA’s), East African School of Aviation.

Workshop Outcomes

  1. Enhanced understanding and appreciation by the airline industry on SAATM Regulatory Instruments;
  2. Enhanced understanding and appreciation by the airline industry on the Key Performance Indicators for the implementation of SAATM;
  3. Shared experience by Regional Competition Authorities and Consumer Protection Associations on the Regulatory Texts of the YD/SAATM;
  4. Understanding of the progress and challenges in the implementation of the YD and the approved Key Performance Indicators (KPIs) for tracking the implementation of the YD and SAATM;
  5. Enhanced understanding and appreciation by airline industry on the opportunities and overall benefits associated with the liberalization of the African air transport through the YD/SAATM;
  6. Promotion/Advocacy on SAATM;
  7. Enhanced appreciation among Stakeholders on the need for collaboration on sustainable development of air transport in Africa through full implementation of the YD and SAATM; and
  8. Enhanced awareness on the need and advantages of a harmonized YD regulatory texts environment.

Participants

  • African Airline CEOs, Directors, Senior Airline executives and Managers responsible for air transport regulation, industry affairs, legal, business development, marketing, network planning and operations, etc;
  • Representatives of the Regional Economic Communities (RECs);
  • Regional Competition Authorities and Regional Consumer Protection Associations; and
  • Representatives from key partner Institutions (AUC, ICAO, IATA, AASA, AFCFTA Secretariat)

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Interview Exclusive du Secrétaire Général  d’AFRAA Sur AEROPORT LE MAG

«Notre client final à tous c’est le passager, pour le satisfaire nous devons nous unir dans une démarche commune d’amélioration continue. »

 Quel bilan trafic et financier pouvez-vous dresser pour l’année 2023 pour les compagnies aériennes africaines ?

Abderahmane Berthé : 2023 fut une année de transition entre la période Covid-19 et le retour à une situation normale. Si les effets de la crise sanitaire se sont encore fait sentir en début d’année, les signaux étaient clairement orientés vers une reprise dynamique depuis fin 2022 ; preuve en est le retour au nombre de routes internationales d’avant-Covid et le rattrapage, en décembre, du niveau de connectivité de 2019. Pour 2023, nous tablons sur un trafic de 85 millions de passagers contre 95,6 millions en 2019, soit un taux de recouvrement de 89 %.

Sur le plan financier, nous estimons que les pertes s’établiront autour de 6 % par rapport aux revenus de 2019, soit près d’un million d’euros. Nous ne disposons pas encore des chiffres de rentabilité, toutefois nos membres demeurent confrontés à de nombreux défis, en particulier à la hausse des coûts d’exploitation. À l’heure actuelle, très peu de compagnies aériennes sur le continent sont rentables. 

Telechargez l’ intégrale de l’ interview ici https://bit.ly/3vgk2ij

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AFRAA, AFCAC, AUC workshop on SAATM

As the implementation of the Single African Air Transport Market (SAATM) gains traction, AFRAA, AUC and AFCAC, invites you to attend a Workshop on the Regulatory Instruments of the YD and SAATM in Nairobi, Kenya, from 18-20 March 2024. The 3-days Workshop will be held at the Kenya Civil Aviation Authority’s (KCAA’s), East African School of Aviation Main Conference Room.

Register: https://forms.office.com/r/auVgQQPCHb?origin=lprLink

Purpose of Workshop

This is a capacity building Workshop on SAATM Regulatory Instruments and will be used to create awareness, and present all the regulatory text (Powers, Functions and Operations of the Executing Agency, Consumer Protection Regulations, the Competition Regulations, the Dispute Settlement Mechanism and the revised African Civil Aviation Policy (AFCAP).
The aim is to empower operators on their rights, obligations and opportunities in a SAATM environment.
The workshop will also present the Key Performance Indicators for the implementation of SAATM and encourage eligible airlines to work together to expand their Intra-Africa operations.

Expected Outcome

i) Enhanced understanding and appreciation by the airline industry on SAATM Regulatory Instruments;
ii) Enhanced understanding and appreciation by the airline industry on the Key Performance Indicators for the implementation of SAATM;
iii) Shared experience by Regional Competition Authorities and Consumer Protection Associations on the Regulatory Texts of the YD/SAATM
iv) Understanding of the progress and challenges in the implementation of the YD and the approved Key Performance Indicators (KPIs) for tracking the implementation of the YD and SAATM;
v) Enhanced understanding and appreciation by airline industry on the opportunities and overall benefits associated with the liberalization of the African air transport through the YD/SAATM;
vi)  Promotion/Advocacy on SAATM;
vii)  Enhanced appreciation among Stakeholders on the need for collaboration on sustainable development of air transport in Africa through full implementation of the YD and SAATM; and
viii) Enhanced awareness on the need and advantages of a harmonized YD regulatory texts environment.

Who Should Attend

i) African Airline CEOs, Directors, Senior Airline executives and Managers responsible for air transport regulation, industry affairs, legal, business development, marketing, network planning and operations, etc;

ii) Representatives of the Regional Economic Communities (RECs);

iii) Regional Competition Authorities and Regional Consumer Protection Associations; and

iv) Representatives from key partner Institutions (AUC, ICAO, IATA, AASA, AFCFTA Secretariat)

Programme and Agenda, https://tinyurl.com/download-programme

Hotel Reservation

The following are AFRAA recommended hotels for the event:

Hotel:  Crowne Plaza Nairobi Airport
Standard Room BB:    -USD150
Contact person:           Luke Khaemba
Email:  Luke.Khaemba@crowneplazanairobiairport.com

Tel:      +254-710502346

 

Hotel:  Four Points by Sheraton Nairobi Airport
Standard Room BB:    -USD150
Contact person: Martin Kidula
Email:  sales@fourpointsnairobiairport.co.ke

Tel:      +254-740031189

 

Hotel:  Hilton Garden Inn Nairobi
Standard Room BB:    -USD150
Contact person: Brenda Bosire
Email:  Brenda.bosire@hilton.com

Reservations@hginairobi.co.ke

 

For More information, contact;

AFRAA: Raphael Kuchi
Email: rkuuchi@afraa.org

Tel: + (233) 24 482 86 89

or

AFCAC: Mr. Stephen Musa,
Email: SMusa@afcac.org

Tel: + (221) 33 859 88 22.

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AFRAA SG intervention at ACI Africa Regional Conference in Cairo, Egypt, 26 Feb 2024

Mr. Abderahmane Berthé, Secretary General of the African Airlines Association (AFRAA) participated in a panel session at the 2024 ACI AFRICA Regional conference in Cairo, Egypt on 26 Feb on the theme: “Unlocking the Potential of Aviation in Africa”.

Aviation is a core enabler of economic growth and development in Africa, connecting countries, people and goods with enhanced air connectivity, facilitating tourism and trade, and contributing to the social wellbeing and education of the communities. The panel session will examine why the aviation sector in Africa is yet to reap these benefits, being hampered by several systemic factors, including geopolitical and internal political situations, protectionism, and other restrictive policies and practices.

Mr. Berthé made emphasis on addressing the following key issues to unlock the potential of Aviation in Africa

  • Low income and low purchasing power of African citizens
  • High cost of operations / High Fares / Affordability
    • Fuel: globally, 25% average operating costs; Africa 30-40%.
    • Taxes, charges and fees: higher compared to other regions
  • Market access restrictions Many African states still deny traffic rights to African Airlines, affecting Intra-Africa connectivity.
  • Ease of visa restrictions
    • – 50% of travelers need a visa before travelling
  • Release of blocked funds impacting airlines’ performance

In his intervention, Mr. Berthé further elaborated the status updates on the roadmap implementation of the first African aviation industry laboratory for the sustainability of air transport in Africa that was hosted by AFRAA in 2022.

Aviation industry stakeholders who developed the roadmap for the sustainability of the African air transport industry committed to coordinate efforts to:

  1. Increase the number of fifth freedom city pairs in Africa to enhance intra-African connectivity.
  2. Develop guidelines and economic regulatory framework for rationalization of taxes, charges, and fees.
  3. Achieve competitive and affordable air travel to boost trade and tourism in Africa.
  4. Reduce the taxes on fuel and abolish custom duties on spare parts and aircraft in line with the relevant provisions of the ICAO Convention.
  5. Streamline and automate the flight permits acquisition processes across Civil Aviation Authorities (CAAs).
  6. Boost flight operation efficiency in African airspace to attain productivity gains for airlines and air navigation service providers.

Traction has been made with tangible outcomes reported on the implementation of the Free Routing Airspace in Africa ongoing trials and the increase of 5th freedom city-pars within Africa from 14.5% to 19% as at 2023.

The panel comprised of the following panelists and was moderated by Mr. Emanuel Chaves, President, ACI Africa.

  1. Abderahmane Berthé, Secretary General, African Airlines Association (AFRAA)
  2. Olivier Baric, Aviation Consultant
  3. Mohamed Fala, President of El-Nakhil Tours Company
  4. Jihad Boueri, Vice President, Transformation, SITA, Middle East & Africa
  5. Mohamed Elsherbeiny, General Manager, International Offices Department – Egyptian Tourism Authority
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AFRAA Signs MoU with TMAM for coordination of support for enhanced airline and airport operations in Africa  

16 February 2024, Malabo –  Equatorial Guinea: Airlines and airports have an interdependent relationship and a coordinated interaction is key for the air transport industry to thrive. In line with this and with the objective to develop coordinated synergies that will align efforts to enhance airport and airline operations in Africa, the African Airlines Association (AFRAA) has signed a Memorandum of Understanding (MoU) with the Terminals Malabo Airport Management (TMAM).

The MoU was signed by Mr. Abdérahmane Berthé – AFRAA Secretary General and Mr. Ahmed Al Hadabi – Group CEO of Terminals Group at sidelines of the Future of Air Transportation Summit in Malabo –  Equatorial Guinea. Under the framework of the MoU, AFRAA and TMAM will focus on the following areas of collaboration:

  1. Efforts to promotion of travel and tourism within Africa
  2. Data sharing and analytics
  3. Initiatives to enhance operational efficiencies, customer service, and strategic planning
  4. Environmental sustainability
  5. Airport Infrastructure Development
  6. Training and capacity building
  7. Innovation and Technology
  8. Emergency Response and Crisis Management
  9. Special handling services
  10. Enhancement of customer service for passengers
  11. Advocacy and policy engagement

 

An annual workplan shall be developed to set and track progress of activities between AFRAA and TMAM.

 

About    AFRAA

The African Airlines Association, also known by its acronym AFRAA, is a trade association of airlines from the member states of the African Union (AU). Founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry. The Association envisions a sustainable, interconnected and affordable Air Transport industry in Africa where African Airlines become key players and drivers to African economic development.

 

AFRAA membership of 54 airlines cuts across the entire continent and includes all the major intercontinental African operators. The Association members represent over 85% of total

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African airlines’ performance updates by AFRAA – January, 2024

Airline Performance: Since November 2023, traffic carried by African airlines exceeded 2019 level. In January 2024, African airlines RPKs where 2.06% above the level of the same month in 2019 while ASKs where 7.1% above.

According to AFRAA estimates, African airlines will carry around 98 million passengers in 2024.

Regarding cargo, 149.6 million Kgs moved to/from Africa in November 2023, among which African airlines represented 30.8%.

At some major African airports (Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan and Lagos), intra-Africa connectivity reached or exceeded pre-Covid level since December 2022.

2023 saw an increase in airline revenues and the narrowing of revenue gap compared to 2022. The full year 2023 revenue shortfall of African airlines was US$ 1 billion, compared to 2019 full year.

Jet A1 price continues to fluctuate marginally from week to week. The global average jet A1 price ended the week of 19 Jan 2024 up 2% at $108.92/bbl.

Regulatory/Industry Affairs

Somalia: Somalia has taken back control of its airspace management from Nairobi where it was airspace control was reassigned in 2018, reflecting its commitment to sovereignty and self-governance. The transition of Somalia’s airspace from Class G to Class A marks a significant milestone in the country’s aviation sector. The class upgrade means Somalia will now provide Air Traffic Control Services, a crucial step in enhancing safety and operational efficiency.

Zambia has adopted the use of electronic cargo manifests, a forward-looking approach aimed at modernizing cargo processing and aligning with international trade standards. The move will expedite cargo handling processes, foster smoother operations, and support the objectives of the trade facilitation agreements.

A similar digitization move in Cameroon has seen the innovative use of a “Customs Cmr” or “Douane Cmr” mobile app in air passenger processing. This will streamline customs procedures and embraces digital transformation in passenger handling. The result will be efficiency and convenience for both passengers and customs authorities.

Tunisia increased tourism tax for economy and business class travelers to enhance revenue generation for the tourism sector. The increase which was without consultation with industry stakeholders could negatively affect the anticipated tourist arrivals in the country.

On a positive note, Tunisia has deposited its instruments of ratification of the Montreal Protocol 2014 (MP14) with the effective date of Jan 2024.  Tunisia has become the 47th party to MP14 which addresses jurisdictional gaps that allow unruly and disruptive passengers to avoid prosecution AFRAA encourages all African states to ratify this protocol as a deterrent to unruly behavior on flights and at airports.

In Jan 2024 a meeting was held in Cologne to address challenges related to GPS spoofing. The event emphasized the importance of pilot training highlighted ongoing commitment of the global aviation community to addressing emerging threats posed by spoofing. Balancing the adoption of newer technologies with considerations for evolving security challenges remains a critical aspect of ensuring the resilience and sustainability of the aviation sector. Collaboration and information-sharing are essential to navigating the complexities of the current aviation landscape.

 

[End]

 

About    AFRAA

The African Airlines Association, also known by its acronym AFRAA, is a trade association of airlines from the member states of the African Union (AU). Founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry. The Association envisions a sustainable, interconnected and affordable Air Transport industry in Africa where African Airlines become key players and drivers to African economic development. AFRAA membership of 54 airlines cuts across the entire continent and includes all the major intercontinental African operators. The Association members represent over 85% of total international traffic carried by African airlines. Follow us on Facebook, LinkedIn, Twitter and YouTube.

 

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AFRAA highlight actions on SAATM progress at the 7th meeting of the JPAP

With the overall objective to boost intra-Africa traffic and connectivity to accelerate the implementation of SAATM, AFRAA joined key industry stakeholders at the 7th meeting of the Joint Prioritized Action Plan (JPAP) for operationalization of the Single African Air Transport Market (SAATM). The meeting, which was organized by AFCAC, took place in Nairobi – Kenya on 09 February 2024. AFRAA shared highlight actions on SAATM progress and the 2024 plan of activities at the meeting on:

  • Capacity building
  • Safety
  • Free Routing Airspace
  • Advocacy and lobbying
  • Roadmap action of the laboratory on Sustainability of air transport industry

 

Overall, SAATM represents a strategic initiative aimed at transforming the aviation landscape in Africa, fostering greater regional integration, and unlocking the economic potential associated with improved air connectivity.

After 5 years of official launching SAATM, there is still very little commitment by some of the 37 signatory States to for the full liberalization of aviation market on the continent including several other barriers that prevent the successful implementation of SAATM on the continent, such as lack of prioritization of aviation by Governments, policy of protectionism, high fees and taxes, failure to facilitate/opening visas between countries, amongst several others.

The purpose of the JPAP is for Africa’s aviation industry stakeholders to identify and align the activities to support SAATM, namely:

  • Ensuring members of the SAATM fully implement the immediate measures to effectively operationalize the Single African Air Transport Market as early as possible;
  • Elaborating and executing an effective advocacy and communication strategy for more states to join the SAATM;
  • Resource mobilization and strengthening of the capacity of the African Civil Aviation Commission to effectively perform its functions as the Executing Agency of the Yamoussoukro Decision;
  • Seeking technical assistance for Member States to improve the level of aviation safety and security to meet the minimum requirements of ICAO Standards and Recommended Practices (SARPs) and attain the global average of effective implementation level; and
  • Ensuring African airlines enhance their cooperation in the operation of the Single African Air Transport Market.

Since the creation of JPAP in 2018, annual meetings are held to coordinate actions and align on tangible results that have been achieved. The 7th JPAP meeting achieved the following objectives:

  1. Obtained the progress report of implementation of the 2023 SAATM Prioritised Joint Action Plan;
  2. Reinforced commitment of stakeholders in supporting the development and sustainability of African Civil Aviation industry;
  3. Updated 2024 SAATM Prioritised Joint Action Plan that is aligned with the Recommendations of the SAATM-PIP Airshows and the 2024 Workplan; and
  4. Updated the adopted mechanism for monitoring, evaluation and reporting of the Joint Prioritised Action Plan;

 

Stakeholders present at the meeting included:

  • Representative of the SAATM Champion
  • Representative of the Chairperson of the SAATM Ministerial Working Group
  • African Union Commission (AUC)
  • African Civil Aviation Commission (AFCAC)
  • Regional Economic Communities (RECs)
  • African Airlines Association (AFRAA)
  • United Nations Economic Commission for Africa (UNECA)
  • African Development Bank (AfDB)
  • ICAO – HQ, WACAF, ESAF and MID Regional Offices and EURNAT;
  • International Air Transport Association (IATA)
  • Airlines Association of Southern Africa (AASA)
  • European Union/EASA;
  • Aircraft Manufacturers (Boeing)
  • Air Navigation Services Providers

Regional Safety Oversight Organizations (RSOOs) and Regional Aircraft Accident Incident Investigation Organizations (RAIOs)

Address

AFRAA Building, Red Cross Road, off Popo Road which is Off Mombasa Road in South C.
P. O. Box 20116, Nairobi ,00200 Kenya

Call Us

+254-20-2320144 +254-20-2320148

Send us an email

afraa@afraa.org

Mission: To promote, serve African airlines and champion Africa’s aviation industry.

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