On advocacy for the release of airline blocked funds in Burundi, AFRAA Secretary General – Mr. Abderahmane Berthé and Mr. Raphael Kuuchi – Director Government, Legal, and Industry Affairs, met the Governor of the Bank of the Republic of Burundi – Mr. Dieudonné Murengerantwari, this week on Thursday, 21 September 2023.

AFRAA Leadership was accompanied by various representatives of AFRAA member airlines with operations in Burundi that are impacted by the blocked funds situation, including: Ethiopian Airlines, Kenya Airways, RwandAir, and Uganda Airlines.

The deliberations with the Burundi Central Bank Governor on how to support the efficient operations of airlines was very fruitful.  Specifically, the Central Bank committed to facilitate the repatriation of the proceeds of airlines’ sales. AFRAA appreciates the Burundi Central Bank Governor’s and his team’s openness to come up with practicable solutions to remedy the situation very soon.

The issue of blocked funds in many countries is challenging for African airlines. To address the matter, AFRAA has established a Blocked Funds Task Force with some member airlines to engage with the concerned States to unlock the funds.

“AFRAA calls upon governments to consider Aviation as a priority sector and reduce the level of blocked funds.” Mr. Berthé stated.

AFRAA Secretary General – Mr. Abdérahmane Berthé, made an intervention at the 2023 Edition of the African Aviation Summit in Abuja – Nigeria themed: “painting the big picture for African airlines”.

Mr Berthé’s intervention comprised of a presentation and participation in a panel session. The presentation covered: the state of the airline industry, the economic trends, challenges and opportunities for the airline industry.

On connectivity, the outlook is positive – the total number of intercontinental routes operated by African airlines exceeded the pre-COVID levels since October 2022. In some major airports (Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan, and Lomé), the intra-Africa connectivity has reached or exceeded pre-Covid level since December 2022.

In terms of revenue loss attributed to Covid-19, Mr Berthé reported that 2023 is witnessing a narrowing of the gap. 2023 is expected to be a better year compared to 2022. Amid the high oil price above the pre-Covid levels of 2019, the Jet fuel price continues the upward trend, going up by over $22 in one month from July to August.

On cargo, the average market share of African airlines per cargo origin is 31% Year to date. North Africa comes first with 37%, followed by East Africa with 30%. The highest cargo traffic growth year on year is in North Africa, with 21% Year to date.

Among the main challenges facing the airline industry is the issue of blocked funds. Mr Berthé reported that the total blocked funds reported by six (6) AFRAA member airlines in fifteen (15) countries (13 in Africa and 2 outside Africa) is approximately US$339.1 million at the end of March 2023.

AFRAA has established a Blocked Funds Task Force with some member airlines to engage with the concerned States to unlock the funds. “We call upon governments to consider Aviation as a priority sector and reduce the level of blocked funds.” He stated.

On intra-Africa connectivity, Mr Berthé stated: “In as much as the connectivity level has exceeded the pre-Covid level, it still remains low with regards to the potential. 85% of flights are direct, and 15% are connecting flights. Only 21% of the direct flights are operated under the 5^th freedom traffic rights.”

“This is a concern because, for many airlines, the 5^th freedom traffic can improve the routes’ profitability and intra-Africa connectivity.” He added.

Another major focus area challenging the industry is the affordability of air travel. “The global average GDP per capita in 2023 is $13,920. Twenty-five (25) African countries have a per capita income of less than $1,000, while only eight (8) have more than $5,000 per capita. For a given average trip length, taxes excluded, ticket fares are more expensive in Africa. On average, ticket fares are twice and thrice higher than in Europe and Asia. With high fares and lower GDP per capita, air transport is not affordable for African citizens.” Mr Berthé emphasized.

With regards to environmental sustainability, Mr Berthe highlighted that carbon emissions from commercial flights are set to triple by 2050 amid surging travel and freight demand. Nonetheless, emissions could be slashed through aircraft technology, operations efficiency, and alternative fuels. “AFRAA members are committed to the global industry efforts towards the reduction of CO2 emissions and mitigating the impact of aviation on climate.” He stated.

“As the global Aviation industry focuses on Sustainable Aviation Fuel (SAF), Africa has an opportunity to act as a leader in feedstock production. However, there are concerns about the SAF production in volume, accessibility at airports, and cost, which is currently high. AFRAA is engaged to work with stakeholders on actions towards the 2050 Net Zero emissions goal.” He added.

He concluded his intervention by emphasizing on the need for a collaborative approach among relevant stakeholders to achieve a successful and viable African aviation industry.

AFRAA Secretary General – Mr Abdérahmane Berthé, made an intervention at the CANSO Africa Conference in Livingstone – Zambia, on 06 September 2023 on the topic: “Perspectives on African Aviation – Challenges and Opportunities for Collaboration”.

Starting off is intervention, Mr Berthé made a highlight of the state of the industry. According to AFRAA data, in August 2023, traffic carried by African airlines reached 98.4% of the 2019 level the same month. In terms of revenue loss by African airlines attributed to covid-19, this is expected to reduce to USD 1 billion. The global intra-African connectivity is estimated to have reached the pre-COVID level since December 2022 while the percentage of international routes operated by African airlines exceeded the pre-Covid level since October 2022.

In terms of collaboration to support jointly Aviation growth in Africa, Mr Berthé gave a perspective on joint initiatives that will anchor aviation now and in the future. He gave a detailed narration of initiatives where AFRAA is collaborating with CANSO and other stakeholders. The main areas of collaboration include: the African Aviation Industry Group (AAIG), the Air Transport Sustainability Laboratory roadmap, infrastructure improvement and the SAATM Joint Prioritized Action Plan.

On infrastructure improvement, CANSO and AFRAA are spearheading the Free Routing Airspace (FRA) project which aligns with the common strategy of reducing ANSP navigation fees while decreasing flight operating costs. Hence, the gains toward air service affordability will generate air traffic volume to benefit air operators and ANSPs in Africa. The kickoff workshop is planned for October 2023 for five (5) trial routes from Ethiopian Airlines and Kenya Airways. The implementation of these routes will annually achieve the following benefits:

• Prevent burning 3,200 metric tons of fuel,
• Avoid emitting 10,100 metric tons of CO2, and
• Attain cost savings of US$ 2,784,000.

The SAAM Joint Prioritized Action Plan pillar 4 on infrastructure improvement is another area of collaboration for AFRAA, CANSO and other stakeholders. “We need to develop a Seamless Airspace Architecture. Consequently, through Collaborative Decision-Making (CDM), airspace users, and Air Navigation Service Providers (ANSPs) must select relevant Aviation System Block Upgrade (ASBU) modules and new technology pieces of equipment to ensure seamless operations safely and efficiently,” Mr Berthé concluded.

The Secretary General of the African Airlines Association (AFRAA), Mr. Abdérahmane Berthé, in a bid to foster closer engagement with member Airlines of the Association, met the CEO of Uganda Airlines – Ms Jennifer Bamuturaki and the airline’s Leadership Team on 07 July in Entebbe – Uganda at the airline’s head-office. The CEO Dialogues initiative was launched in 2022 as part of AFRAA’s strategy to engage with member’s leadership to create dialogue that is necessary to enhance value addition of the Association to better meet its members’ needs.

The issues covered in the deliberations included: current and future plans of Uganda Airlines, priorities for the airline industry by the Government, AFRAA and industry initiatives to support the attainment of sustainability of the air transport industry in Africa, AFRAA Projects for win-win value addition to Uganda Airlines and the preparations towards the forthcoming 55^th AFRAA Annual General Assembly & Summit scheduled to take place from 19-21 November 2023 in Uganda.

AFRAA aims to facilitate better understanding of individual airline needs, local matters and challenges, priorities and business plans thereby enabling the Association to tailor specific actions that enhance its relevance to Member Airlines.

The CEO’s Dialogues are continuous, round-the-year sessions that engage the Member airlines’ decision makers with AFRAA leadership towards effective implementation of added-value projects and actions supporting members’ sustainability. AFRAA’s actions are anchored on 5 pillars including:

1. Safe, secure and reliable air transport
2. Visibility, reputation and influence of African Airlines
3. Sustainable air transport
4. Cooperation
5. Data intelligence

AFRAA Secretary General, Mr Abderahmane Berthe during a session at the 69^th ACI Africa Conference on 1^st March 2023 in Kigali on theme: “Harnessing of SAATM Opportunities for the Industry – Airline Implementation Programme” intervened on ongoing industry actions on the Implementation of the Single African Air Transport Market (SAATM), headwinds being faced and recommendations to effective implementation of SAATM.

 In his presentation, he elaborated the status updates on ongoing actions of the Air Transport Sustainability – SAATM Roadmap, the connectivity drivers as well as industry initiatives by various stakeholders on SAATM.

With regards to status of direct flights and 5^th freedom flights in Africa, Mr Berthe reported that 85% of intra-African flights are directs while 15% connecting with one stop or more. Among those direct flights, 5^th freedom represent only 21%, while the share of 3^rd and 4^th freedom flights is 79%.

From AFRAA data hub, it was reported that ASKY airlines, Ethiopian Airlines, and Kenya Airways were the African airlines operating the highest number of 5^th freedom routes. He added that African airlines operate only 14% of their direct flights on 5^th freedom while 86% on 3rd and 4th freedom. Non-African carriers operate a most important share of their direct flights in 5^th freedom in Africa.

With regards to granting of 5^th freedom traffic rights by African States, AFRAA reporting framework by its member airlines revealed that among 8 (eight) reporting airlines, some have mentioned traffic rights denial by 11 African states.

On opportunities from SAATM, Mr Berthe highlighted that SAATM is a crucial stepping-stone to make air travel a reality for African citizens, it will grow regional air transport which will to drive economic growth and transform lives.

Recommendations to effective implementation of SAATM.

Mr Berthe Made the following recommendations:

1. African States to be willing and ready to implement SAATM and to stop denial of 5^th freedom traffic rights to African airlines.
2. Governments to stop over taxation of aviation.
3. Air transport stakeholders to collaborate to implement the roadmap of the air transport sustainability that was developed by the 2022 Laboratory.
4. Reduce costs along the air transport value chain.
5. Collaboration among airlines to improve connectivity and deliver a better service quality.
6. Right size fleet strategy to improve routes profitability and to connect secondary airports.
7. States, industry, airports to work together to implement the African Routes Development Strategy forum.

Mr. Abdérahmane Berthé’s intervention on the “Impact of High Charges and Fees in the Costs of Travel within Africa” at the YD Anniversary celebrations in Dakar – Senegal, 14 Nov 2022.

In Africa, taxes and fees applied to air tickets represent 25% to 50% of the final price. Passengers pay in average 3.5 different taxes and fees for international departures, representing an average of USD 65.96 in Africa compared to USD 32.50 in Middle East and USD 30.12 in Europe.

“Africa needs to move from the current situation of low choice, high fares and step into a new age of affordable and accessible air transport. One of the ways to achieve this is through the effective implementation of the Single African Air Transport Market (SAATM).”  

Under the auspices of the Laboratory to revamp aviation and trade sectors in Africa organized by AFRAA and the African Aviation Industry Group (AAIG) air transport industry stakeholders drew a roadmap that has prioritized the implementation of SAATM among 4 other Projects to achieve sustainable development of air transport in Africa.

2021 was yet another disastrous year for African airlines in terms of profitability and any recovery was impacted by the Omicron variant.

The African Airlines Association or AFRAA was a member of the multi-sectoral task force that met and created a document that called for the safe reopening of borders back in February 2021 and there is now a renewed effort to implement the recommendations.

Together with Mr Berthe, we discuss

Why is now the right time for a renewed effort to harmonise travel protocols.

How AFRAA is supporting the African CDC and what AFRAA member airlines want to see in terms of progress?

Digitizing travel in 2022 and harmonizing the inter-operability of solutions

AFRAA’s aims and objectives for 2022.