SITA: Air transport industry turns to digitalization as baggage mishandling rates virtually double amid growing passenger volumes

Airlines and airports are facing a surge in baggage mishandling rates amidst the growing number of passengers, with the number of mishandled bags almost doubling from 2021 to 2022 to 7.6 bags per thousand passengers, according to SITA’s 2023 Baggage IT Insights report released today.

The shortage of skilled staff, resumption of international travel, and congestion at airports has made it challenging to manage bags and ensure their smooth handling at airports – particularly during peak travel periods. The overall increase in mishandling is forcing the industry to focus on digitalization and automation, with technology investments that deliver greater automation and self-service being a top priority.

Delayed bags accounted for 80% of all mishandled bags in 2022, lost and stolen bags increased to 7%, and damaged and pilfered bags decreased to 13%.

The surge in the mishandling rate comes after more than a decade of reduction in mishandled baggage. Significant process improvements helped the mishandling rate per thousand passengers fall by 59.7% between 2007 and 2021. However, given the pressure of staff shortages on operations post-COVID, the 2022 mishandling rate of 7.6 bags per thousand passengers represents a 75% increase from 2021.

Transfer bags have historically accounted for the majority of mishandled bags. This was no different in 2022, with a one-percentage point increase from 2021, pushing the proportion of bags delayed at transfer to 42%. This increase is attributed to the resurgence of international and long-haul travel, leading to loading errors and greater transfer mishandling rates. The failure to load bags accounted for 18% of all mishandled bags in 2022, representing a 3% decrease from the previous year. Loading errors more than doubled compared to the previous year, accounting for 9% of all delayed bags in 2022, stemming from operational strains on baggage systems.

David Lavorel, CEO, SITA said: “After a decade where the mishandling rate more than halved between 2007 and 2021, it is disheartening to see this rate climbing again. As an industry, we need to work hard to ensure passengers are once again confident to check in their bags. We at SITA are working directly with airlines and airports to help solve key pain points in the baggage journey through smart automation, tracking, and digital platforms.”

Investing in real-time baggage status information has become a key priority for airlines, with 57% of airlines providing their staff with mobile access to real-time baggage status information. This figure is expected to increase significantly to 84% by 2025, and 67% of airlines plan to offer real-time baggage status information directly to passengers, marking a substantial improvement from 25% today.

SITA has developed the WorldTracer Auto Reflight system in direct response to the high mishandling rates observed at transfer. This solution automatically identifies bags what are not likely to make their planned connecting flight and rebooks them on the next possible flight using the existing bag tag – all while keeping the passenger informed.

SITA estimates that automation of reflight operations could save the industry up to $30 million per year. Lufthansa and SITA’s recent partnership using the technology aims to digitalize the manual reflight process, and the results of their Proof of Concept suggest that they can automatically reflight as much as 70% of Lufthansa’s mishandled bags at Munich Airport.

Download the SITA Baggage IT Insights 2023 report here.

Press Release – Aviation stakeholders map actions to change the African aviation narrative at the 11th Aviation Stakeholders Convention

Addis Ababa, 07-10 May 2023: While the air transport recovery trajectory continues post-COVID-19 and with the headwinds arising from other geopolitical-related developments, it is critical for the air transport ecosystem stakeholders put their weight behind concerted actions for air transport business to thrive and contribute to the continent’s sustainable rapid development. It is timely to redefine the narrative of Africa’s air transport industry to that of interconnectedness, affordability, profitability, efficiency, and sustainability. This was the impetus of the much-awaited Convention, held under the theme “Changing the African Aviation Narrative”.

The Convention was held at the Ethiopian Skylight Hotel in Addis Ababa, Ethiopia, from 07 – 09 May 2023 under the patronage of the Government of the Federal Republic of Ethiopia and was graced by two Ethiopian Ministers – Her Excellency Nasise Chali, Ethiopia Minister of Tourism and His Excellency Dr. Alemu Sime, Ethiopia Minister of Transport and Logistics- who was the Guest of Honor.

Speaking at the CConvention on the importance to change the future of our industry with transformative ideas and actions, Mr. Abdérahmane Berthé emphasized that African Airlines face many challenges that the industry needs to contemplate and find lasting solutions with serious consideration. “Critical among the challenges facing our industry is sustainability. Only 10% of African citizens can afford air transport, meaning there is a huge room for growth. Reducing the cost of operation, cooperation among airlines, partnerships, and consolidation are part of AFRAA’s initiatives and advocacy to make air transport affordable for Africans.” He said.

The main objective of the Convention was to convene stakeholders to dialogue and deliberate on subject matters to pave the way for the air transport industry’s development and change the narrative of African Aviation. This CConvention also aimed at establishing lasting interactions and partnerships among aviation players and airlines in the aviation value chain for win-win relationships that will benefit African aviation.

Event Highlights

A total of 31 African airlines attended the conference, out of which 14 were represented at the CEO level. Overall, the event was attended by 455 participants from 42 countries. Aviation ecosystem stakeholders at the Convention deliberated on the following key subjects that were lined up in the programme:

  • The Pillars for African Aviation Sustainability
  • Roadmap to Fast-Track the Implementation of SAATM
  • Enhancing Cargo Operations, E-Commerce Networks, and Logistics
  • Keeping Track of Abuja Safety Targets for Africa
  • How to Remarket Aviation
  • Training the Next-Gen Aviation professionals for the Sustainability of Africa’s Air Transport Industry
  • Accelerating Intra-Africa Tourism for Sustainable Growth
  • Digitalization: Enhancing the Digital Customer Journey
  1. Masterclasses

There were master classes where cutting-edge ideas, industry best practices, new opportunities, and practical solutions were presented and discussed. The following masterclasses took take place:

  • Class 1: The journey towards more efficient and sustainable flights by: SITA
  • Class 2: The Digital Twin by Star Navigation
  • Class 3: Showcase of AFRAA Data intelligence tool and AviAnalysis solution.

2. Meeting of the Air Transport Sustainability Steering Committee

The Steering Committee of the Laboratory on Air Transport Sustainability in Africa held a meeting at the Convention to take stock of achievements made since 2022 and deliverables for 2023 and beyond. The laboratory brings together air transport, trade, and tourism stakeholders under a roadmap structured into five projects for the sustainability of the industry, namely:

Project 1:          Taxes (Fuel and customs)

Project 2:         High Taxes and Charges

Project 3:         Navigation – Free Routing Airspace (FRA)

Project 4:         Implementation of the Single Air Transport Market (SAATM)

Project 5:         Partnerships – Airlines and Tourism Bodies to improve intra-African Tourism

In the discussions, stakeholders took note of the following achievements made under the roadmap of the laboratory outcomes, among others:

  1. On the development of a new model of sharing critical infrastructure to reduce investment costs, a data gathering process has been launched in the field of technology used by Air Navigation Service providers (ANSPs), procurement, and investment practices. This will be used for comparison and best practices to guide all the ANSPs.
  2. Regarding the FRA progress, two member airlines volunteered participation in a total of 5 city pairs in the FRA trials. FRA implementation on these routes is estimated to avoid burning 3,200 metric tons of fuel, emitting 10,100 metric tons of CO2, and yield savings of US$ 2,784,000 annually. The FRA trials are planned to start in 2023.
  3. On SAATM, a total of 20 States have committed to the Pilot Implementation Programme (PIP) as of April 2023. For each of the States lined up for the PIP roadshows, States are being engaged to sign MoUs to carry out the gap analysis of the BASAs.

3. CSR event for youth development in aviation

After the conclusion of the Convention, AFRAA, in collaboration with Ethiopian Airlines and Collins Aerospace, staged a 1-day youth event on 10 May 2023 as part of CSR activities aimed at empowering and motivating the next generation of aviators at the Ethiopian Aviation University. The event was sponsored by Ethiopian Airlines and Collins Aerospace. A total of 130 high school students from 10 schools in Ethiopia benefited from the initiative, which is aimed at supporting youth development in aviation.

4. Exhibition

A total of 21 aviation-related companies showcased their products and solutions through an exhibition at the Convention. The current exhibitors include: ACI Africa, Aeroplay Entertainment Pte Ltd, African Airlines Association, African Civil Aviation Commission, ATNS, Aviators Africa, Boeing, Collins Aerospace, East African Aviation, EgyptAir Holding Company, Embraer, Ethiopia Ministry of Tourism, Ethiopian Airlines Group, Fokker Services Group, Lufthansa Systems, Rolls Royce, Silks of Sheba, SITA, South African Airways Technical, Star Navigation Systems Group, and Turkish Airlines Aviation Academy.

Sponsors: The Stakeholders Convention was proudly sponsored by: Ethiopian Airlines, ASECNA, ATNS, Boeing, Collins Aerospace, Rolls Royce, and South Africa Tourism.

-Ends –

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 50 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.

Press Release – Ethiopian Airlines and AFRAA’s forthcoming Aviation Convention in May set to change the narrative of African airline industry

Addis Ababa, 14 April 2023: In light of Africa’s vast landmass, its population accounting for 16% of the world population, and its low share of global trade of 2%, the continent is an excellent opportunity to develop air transport. However, as a market, Africa’s share over several decades has remained stagnant at less than 3% of the world market – it is time to take action to change this narrative.

The 11th Aviation Stakeholders Convention, scheduled to take place from 07-09 May 2023 is timely and aligned to address this situation. The Convention, which is proudly being hosted by Ethiopian Airlines under the patronage of the Government of Ethiopia, will be held under the theme: “Changing the African Aviation Narrative”. The event will bring together over 400 delegates from Africa and across the globe. The Convention is one of Africa’s leading forums for air transport industry stakeholders to dialogue, exchange knowledge and experiences for the development of the travel ecosystem. Several African airline Chief Executive Officers and aviation industry thought leaders will be present at the event.

Speaking in Addis Ababa on the significance of attainment of sustainability that will change the narrative of Africa’s air transport, Mr. Abdérahmane Berthé emphasized the importance of dialogue among stakeholders and collaborative initiatives such as those facilitated by AFRAA: “AFRAA and Ethiopian Airlines are excited to stage this Convention for the travel ecosystem stakeholders to meet, deliberate on strategies to enhance efficiencies, create synergies, develop intra-Africa connectivity, ensure business continuity that will redefine the narrative of Africa air transport industry.

Mr. Mesfin Bekele, Group CEO Ethiopian Airlines remarked, “We are delighted to host the 11th Aviation Stakeholders’ Convention of AFRAA which will serve as a forum for stakeholders in the industry to put their heads together and discuss the opportunities and pressing issues in Africa’s aviation sector. The forum will showcase the ‘Africa Rising’ mantra manifested in the growing opportunities for all stakeholders in the continent’s aviation industry.

Event Highlights

The Convention will be held from 07-09 May 2023 at the Skylight Hotel in Addis Ababa Ethiopia.  A robust and comprehensive programme has been lined up to facilitate discussions on various salient topics, masterclasses, networking opportunities at social events and B2B sessions through a conferencing application. Delegates will have the opportunity to network and discuss developments in the industry and forge business partnerships.

CSR event for youth development in aviation: On 10th May, the Convention activities shall cover a CSR activity aimed at empowering the next generation of aviators at the Ethiopian University. The event will be sponsored by Collins Aerospace and staged in collaboration with AFRAA and Ethiopian Airlines.

Exhibition: There shall be exhibition and showcase of aviation-related products and solutions at the exhibition segment of the Convention.

Sponsors: The Stakeholders Convention is proudly sponsored by Ethiopian Airlines, ASECNA, ATNS, Boeing, Collins Aerospace and Embraer.

 

For media queries please contact:

Maureen Kahonge

Senior Manager Business Development and Communication

African Airlines Association (AFRAA)

mkahonge@afraa.org

About Ethiopian:

Ethiopian Airlines (Ethiopian) is the fastest growing Airline in Africa. In its seventy-six plus years of operation, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. In addition to its main hub in Addis Ababa, Ethiopia, it is also pursuing its multi-hub strategy through a hub in Lomé, Togo with ASKY, in Lilongwe, Malawi with Malawi Airlines and in Lusaka, Zambia with Zambia Airways. Ethiopian commands the lion’s share of the Pan African passenger and cargo network operating the youngest and most modern fleet to more than 150 domestic and international passenger and cargo destinations across five continents. Ethiopian’s fleet consists of ultra-modern and environmentally friendly aircraft such as Boeing 737s, 777s, 787s, Airbus A350-900 and Bombardier Dash 8-400 double cabin with an average fleet age of seven years. In fact, Ethiopian is the first airline in Africa to own and operate most of these aircraft. Having achieved its strategic plan (Vision 2025) ahead of time, Ethiopian is currently implementing a 15-year strategic plan called Vision 2035 that will see it become one of the top 20 most competitive and leading aviation group in the world by providing safe, secured, market driven and customer focused Passenger and Cargo Transport and Logistics Services, Aviation Training, Airport Management and Ground Services, MRO and Aerospace Manufacturing and Travel and Tourism Services. As a multi-award-winning airline, Ethiopian has been winning various coveted awards including Skytrax’s ‘Best Airline in Africa Award’ for five consecutive years. The airline has been a Star Alliance member since 2011, and has been registering more than threefold growth in the past 10 years. For additional information, please visit www.ethiopianairlines.com

Email: CorporateCommunication@ethiopianairlines.com

Tel: (251-11)517-8913/8165/8907

Social Media

Facebook:  https://www.facebook.com/EthiopianAirlines.official

Twitter:      https://twitter.com/flyethiopian

Instagram:  https://www.instagram.com/fly.ethiopian/

YouTube: https://www.youtube.com/channel/UCCV26xfT57LiOgrZM45ouCg/featured

LinkedIn: https://www.linkedin.com/company/ethiopian-airlines/

Telegram: https://t.me/ethiopian_airlines

Press Release – AFRAA Inks MoU with the Kenya Association of Air Operators for mutual support to the development of the airline industry in Kenya

Nairobi, 16 March 2023 – The African Airlines Association (AFRAA) signed a memorandum of understanding (MoU) with the Kenya Association of Air Operators (KAAO) to provide mutual support to the sustainable development of the airline industry in Kenya as the country is represented by the two Associations.

The MoU was signed by Abdérahmane Berthé, AFRAA’s Secretary General and Liz Aluvanze, KAAO’s Chief Executive Officer at a ceremony that took place at the Aero Club of East Africa in Wilson Airport, Nairobi – Kenya.

Under the framework of the collaboration, AFRAA and KAAO will work closely on the following areas of action for the mutual benefit of their membership and industry:

  1. Engagement of local authorities and stakeholders on air transport matters;
  2. Joint advocacy efforts on issues challenging the airline industry such as: taxes and charges, aviation policy, market restrictions, infrastructure and capacity building;
  3. Implementation of the roadmap of the African Air Transport Sustainability Steering Committee (ATSSC);
  4. Data and intelligence;
  5. Training: Subsidized training courses through AFRAA’s ATO partnership framework;
  6. Initiatives on People with Disabilities;
  7. Corporate Social Responsibility initiatives and events.

Speaking at the signing ceremony, AFRAA Secretary General, Mr. Abdérahmane Berthé stated: “There are some country-specific opportunities and challenges of the airline industry in Africa that vary from country to country. AFRAA is excited to forge a close working relationship with KAAO as this will enhance the level of support by AFRAA to the airline industry in Kenya. This approach is a building block to AFRAA’s mission for a sustainable, interconnected and affordable air transport industry in Africa where African airlines become key players and drivers to African economic development.”

“As part of KAAOs strategy, we are aiming at developing strong partnerships for advocacy and mutual benefit and this is the first step. We are keen to leverage learnings from AFRAA as they have a pan-African view of the opportunities and challenges faced by the air transport industry in Africa of which Kenya’s robust and dynamic aviation sector forms a significant part of this eco-system” KAAO Chairman Mbuvi Ngunze added.

The MoU will synergize the efforts by both Associations. AFRAA and KAAO will align periodically to review the implementation of the annual Action Plan and explore areas for further collaboration.

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 48 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.

About   KAAO

The Kenya Association of Air Operators (KAAO) was formed in 1965 with a mission to promote and enhance a safe, efficient and sustainable national aviation industry by encouraging an adherence to a high level of civil aviation safety and practices. The organization prides itself on being the unified voice of advocacy for the aviation industry in Kenya.

KAAO brings together over 50 commercial and private air operators, approved training organisations (ATOs), approved maintenance organisations (AMOs), hot air balloon operators, remotely piloted aircraft systems (RPAS) operators and many other aviation-related businesses, associations and industry experts under one umbrella. Visit our website https://aviationkenya.org/ and follow our Socials on Facebook, LinkedIn, Twitter and Instagram.

Press Release – Kenya Airways meets AFRAA for CEO Dialogues

08 March Nairobi – Kenya: Kenya Airways Chief Executive Officer – Allan Kilavuka hosted the African Airlines Association (AFRAA) Secretary General, Abdérahmane Berthé, at the Kenya Airways headquarters in Nairobi – Kenya on 07 March 2023 for this year’s 3rd edition of the “AFRAA Member Airline CEOs Leadership Dialogues” session. Both AFRAA and Kenya Airways Leadership teams were present at the dialogues session.

The meeting presented a unique opportunity to discuss in detail various subjects, including the state of the air transport industry and the underlying dynamics, updates on Kenya Airways’ restructuring process, the airline consolidation feasibility study for Africa roadmap, the status updates on the implementation of the air transport sustainability roadmap and advocacy actions on various issues impacting Kenya Airways’ operations.

Abdérahmane Berthé, AFRAA Secretary General, remarked: “It gives me great pleasure to exchange ideas with Kenya Airways and take stock of feedback for continuous improvement and realignment of AFRAA actions to meet the individual needs of our members better. This is one of the underlying strategies for AFRAA’s business perspective to facilitate continued collaboration with our members to fulfill AFRAA’s mandate.”

At the end of the CEO Dialogues session, AFRAA toured the Kenya Airways Fahari Innovation Hub, a centre for innovation that acts as a springboard for new ideas and data-driven innovations to accelerate impact-driven solutions that address some of the societal and business challenges. Launched in 2021, Fahari Innovation Hub is part of Kenya Airways’ strategy in contributing to the sustainable development of Africa by empowering, collaborating, and co-creating innovative ideas and strategies with local start-ups and the small-medium enterprises (SMEs) ecosystem.

Kenya Airways is the 1st Vice Chairman of the AFRAA Executive Committee, and the airline’s membership to AFRAA spans from 1977.

The CEO Dialogues initiative is a drive-by AFRAA to create close engagement with member airlines and a space for dialogue necessary to develop transformative initiatives for AFRAA’s actions, which are anchored on five 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

Notes for Editors

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 44 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.

Press Release – EgyptAir Holding Company Chairman Dialogues with AFRAA

06 February 2023, Cairo – Egypt: The African Airlines Association (AFRAA) Secretary General, Mr. Abdérahmane Berthé, met EgyptAir Holding Company Chairman – Eng. Yehia Zakaria on 5th February at EgytAir Headquarters in Cairo – Egypt for the year’s first edition of the “AFRAA Member Airline CEOs Leadership Dialogues”. The CEO Dialogues initiative, which hosted a total of 8 airline CEOs in 2022, is part of AFRAA’s strategy to communicate with member’s leadership aimed at creating the space for dialogue that is necessary to develop transformative initiatives.

The deliberations created an opportunity to reflect and exchange ideas between AFRAA and EgyptAir. In particular, on EgyptAir’s plans and strategic direction, the opportunities for intra-African routes through AFRAA route connectivity tool, effective implementation of the Single African Air Transport Market (SAATM), advocacy for optimization of taxes and charges among other opportunities through AFRAA joint projects which implement cost-effective common solutions on various aspects of airline operations for member airlines.

Mr. Abdérahmane Berthé, AFRAA Secretary General stated: “AFRAA is pleased to dialogue with EgyptAir, one of the founding members of AFRAA whose membership spans since 1968.”

“The CEO Dialogues initiative which was started in 2022 has facilitated better understanding of our individual airline needs, local matters and challenges, priorities and business plans thereby enabling AFRAA to tailor specific actions that enhance relevance of the Association to our membership. I look forward to a continued mutually beneficial working relationship with EgyptAir and the entire AFRAA fraternity.” Mr. Berthé added.

The CEO’s Dialogues are 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

Notes for Editors

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 44 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.

African airlines’ performance updates by AFRAA – November 2022

Release date: 16 December 2022

COVID-19: The number of Covid-19 cases is once again on the rise in China, though the controversial Zero Covid Strategy is still in force. In Africa, the infections remains low despite the low vaccination rate of 24.6% compared to the global average of 68.5%.  Worldwide, the number of cases has reached 630 million and 12.6 million in Africa. The recovery rate is 99.98% worldwide compared to 98.01% in Africa.

EBOLA: The government of Uganda has extended the lockdown in the Ebola hotspots of Mubende and Kassanda by 21 more days. 55 confirmed deaths have been reported since the outbreak. So far no travel advisories on the outbreak. Airlines are however advised to exercise caution and report any passengers showing signs of the Ebola virus to the health authorities for further investigations.

AIRLINE PERFORMANCE: This November traffic and airlines capacity deployed reached 85.7% and 84.2% of the 2019 level respectively. Domestic market share is now at 34.3% capacity and 34.3%% of passengers carried while intra-Africa passengers carried represented 30.9% and corresponding capacity at 24.8%. Intercontinental traffic this month is 34.2% and capacity 34.8%. African airlines operations on international routes have now exceeded 2019 pre-Covid level by 2.28%. 7 African airlines have exceeded the number of international routes they operated before Covid.

AFRAA estimate revenue loss for 2022 to be $3.5 billion, equivalent to 20% of 2019 full year revenue. The projected revenue loss for the fourth quarter of 2022 is approximately $800 million.

Jet A1 price continues the upward trend. Year to date, global average price per barrel is $141.5. Impact on global airlines fuel bill is estimated at $130.8 billion for the full year 2022.

REGULATORY AND INDUSTRY DEVELOPMENTS

Environment: The UNFCCC COP27 climate talks took place in Sharm el Sheikh from 6-20 November.  Among others, they discussed the creation of a fund to compensate developing countries for the loss and damage they could experience from climate change (e.g., storm damage, flooding, drought, migration, sea level rise, etc.).  The EU expressed support for the fund and suggested a levy, charge, or tax on international aviation as a possible funding source.  This is at odds with the principles and frameworks set under ICAO.

US FAA: The FAA has set 31 December 2022 as the deadline for the following aircraft models to have their radio altimeter retrofitted to minimize aircraft communications disruptions resulting from 5G deployment: A300, A320, A330, A340, B737 Classic, B747, and B757.  The FAA says Aircraft that are not retrofitted will be subject to restrictions in the US market.

US Refund NPRM:  The deadline for comments on the DOT Notice of Proposed Rulemaking (NPRM) on refunds has been extended until 16 December 2022.  AFRAA encourages member airlines to either file their own comments or file in support of the IATA comments.

Montreal Protocol 2014:  Kenya, Peru and Sierra Leone have become parties to MP14, bringing the number of State parties to 41. A number of States are at advanced stages of progress towards ratification.

YD Day: A major highlight of the 2022 Yamoussoukro Decision Day (YD Day) celebrations held in Dakar, Senegal on 14 November was the launch of the SAATM Pilot Implementation Project (PIP), endorsed by 18 SAATM Member States. This is a commitment by the PIP member states to open-up their markets unconditionally to each other.

SAATM Regulatory Texts: The AU organized a continental capacity-building workshop on the regulatory instruments of the single African air transport market (SAATM) in Accra, 28 Nov – 02 Dec. The workshop was used to  sensitize States and RECs on implementation of the SAATM regulatory instruments – operations, powers and functions of the Executing Agency, consumer protection regulations, the competition regulations, the SAATM Dispute Settlement Mechanism and the revised African Civil Aviation Policy (AFCAP).

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 44 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.

 

Communiqué de presse: L’AFRAA clôture sa 54ème Assemblée Générale Annuelle en mettant l’accent sur des actions concertées pour favoriser la durabilité de l’industrie du transport aérien

Dakar le 14 décembre, Dakar, Sénégal– L’Association des Compagnies Aériennes Africaines (AFRAA) et Air Sénégal ont clôturé la 54ème Assemblée Générale Annuelle (AGA) à Dakar, Sénégal. L’événement s’est tenu sous le Haut Patronage du Gouvernement du Sénégal. L’Assemblée, qui a rassemblé 456 délégués de 42 pays sous le thème “Activer la feuille de route pour une aviation africaine durable“, a appelé les compagnies aériennes africaines et les parties prenantes du transport aérien à agir sur les initiatives et les stratégies qui conduiront à la durabilité du secteur du transport aérien pour réaliser son potentiel. Il s’agit notamment de la feuille de route pour la durabilité du transport aérien, de la mise en œuvre effective du marché unique du transport aérien africain (SAATM), de l’accord de libre-échange continental (AFCFTA) et du protocole de libre circulation.

Dans son discours de bienvenue, M. Alioune Badara Fall, Président de l’AFRAA et DG d’Air Sénégal a déclaré : “Je rends hommage au travail extraordinaire des parties prenantes dans la mise en place de projets et de programmes pour construire ensemble un avenir plus solidaire pour une aviation africaine durable, pour le plein bénéfice des économies et des populations africaines.” Le but ultime, a-t-il noté, sera de réaliser l’amélioration de la connectivité entre les pays africains, de construire des transporteurs réellement efficaces tant sur le plan opérationnel que financier, d’atteindre des tarifs structurellement compétitifs afin d’offrir aux populations africaines la possibilité de voyager, de se rencontrer et d’échanger beaucoup plus facilement grâce à de nouvelles routes, des fréquences accrues.

Abdérahmane Berthé, Secrétaire Général de l’AFRAA, a noté avec satisfaction et grand intérêt l’importance accordée au développement du secteur aérien par l’Etat du Sénégal à travers des investissements dans les infrastructures de développement aéronautique et la Compagnie Nationale Air Sénégal. “En souvenir des moments particulièrement difficiles de cette phase en cours de restauration de l’activité du transport aérien, je tiens à exprimer une fois de plus la solidarité de l’AFRAA avec l’ensemble de la chaîne des acteurs de l’industrie aéronautique. En tant que communauté aéronautique, nous devons poursuivre les efforts communs en cours pour soutenir la reprise et favoriser un système de transport aérien durable et résilient en Afrique”, a-t-il déclaré.

Résolution sur les Émissions Nettes Zéro Carbone de l’Aviation d’ici 2050

Parmi les résolutions, conformément à l’engagement de l’industrie à atteindre des émissions nettes nulles d’ici 2050, l’Assemblée a exhorté toutes les parties prenantes de l’industrie à s’engager à traiter l’impact environnemental de leurs politiques, produits et activités avec des actions concrètes et des échéances claires. L’Assemblée a également encouragé toutes les compagnies aériennes membres de l’AFRAA à continuer d’améliorer l’efficacité de leurs opérations afin de réduire durablement les émissions du secteur et de soutenir la transition vers des carburants aéronautiques durables (SAF) fiables et compétitifs.

Nomination des membres du bureau :

La 54ème AGA de l’AFRAA a élu LAM Mozambique comme Président du Comité exécutif, Kenya Airways comme premier vice-président et Air Algérie comme second vice-président. Le Comité exécutif de l’AFRAA est responsable de la supervision de l’Association.

Hôte de la 55ème AGA :

La 54ème AGA de l’AFRAA a élu Uganda Airlines à la présidence de l’association. Uganda Airlines accueillera la 55ème AGA en Ouganda du 19 au 21 novembre 2023.

Lancement de la 1ère édition du rapport sur l’histoire de l’aviation :

L’AFRAA a lancé la première édition du rapport sur l’histoire de l’aviation africaine en marge de la 54ème Assemblée Générale Annuelle (AGA) et du Sommet de l’AFRAA le 12 décembre 2022 à Dakar – Sénégal. Le Rapport sur l’histoire de l’aviation par l’AFRAA est une publication prestigieuse de l’industrie, une première de son genre en Afrique, qui contient un riche mélange d’informations pour enrichir la compréhension du développement de l’aviation africaine.

Points saillants du rapport du Secrétaire général sur l’état de l’industrie :

La reprise de l’activité aéronautique s’est poursuivie en 2022. Après une contraction en 2020, le PIB de l’Afrique a rebondi de 6,9 % en 2021. Les perspectives de croissance économique en Afrique sont très incertaines. Les effets du conflit russo-ukrainien pourraient entraîner une baisse de la production mondiale plus importante que prévu actuellement.

Par rapport à février 2020, les compagnies aériennes africaines ont rouvert presque toutes les liaisons internationales. Certaines ont étendu leur réseau à de nouvelles destinations, notamment en Afrique de l’Ouest et du Nord. De janvier à novembre 2022, la capacité offerte a atteint 75,4% pour la même période en 2019, tandis que le trafic a atteint 74,7%. Le redressement du niveau d’activité de 2019 est toujours en cours.

Les priorités de l’AFRAA pour 2023 :

  1. Mettre en œuvre les actions de la feuille de route pour la durabilité du transport aérien en Afrique.
  2. Poursuivre le déploiement du plan stratégique quinquennal de l’AFRAA

 “Notre industrie doit renforcer sa résilience et sa durabilité face à de futures crises comme celle de Covid 19 et mettre fin à la marginalisation progressive dont nous avons souffert au cours des 40 dernières années.” M. Berthé a souligné.

À propos de l’AFRAA :

L’Association des compagnies aériennes africaines, également connue sous son acronyme AFRAA, est une association commerciale de compagnies aériennes des États membres de l’Union africaine (UA). Fondée à Accra, au Ghana, en avril 1968, et ayant son siège à Nairobi, au Kenya, l’AFRAA a pour mission de promouvoir et de servir les compagnies aériennes africaines et de défendre l’industrie aéronautique africaine. L’Association prévoit une industrie du transport aérien durable, interconnectée et abordable en Afrique, où les compagnies aériennes africaines deviennent des acteurs clés et des moteurs du développement économique africain.

Les 44 compagnies aériennes membres de l’AFRAA couvrent l’ensemble du continent et comprennent tous les grands opérateurs intercontinentaux africains. Les membres de l’Association représentent plus de 85% du trafic international total transporté par les compagnies aériennes africaines. Suivez-nous sur Facebook, LinkedIn, Twitter et YouTube.

À propos d’Air Sénégal :

Air Sénégal a été créée en 2016 et a lancé ses vols commerciaux le 14 mai 2018. Air Sénégal a pour ambition d’être le leader du transport aérien en Afrique de l’Ouest en s’appuyant sur le hub régional AIBD (Aéroport International Blaise Diagne). Sa mission est de desservir les lignes nationales et internationales. La compagnie est ancrée dans la culture sénégalaise et dans l’ESPRIT TERANGA et place le client au cœur de sa stratégie. 

La compagnie exploite actuellement une flotte de deux Airbus A330-900Neo, deux Airbus A321, deux Airbus A319 et deux ATR 72-600, un A220-300, un A340 en Afrique de l’Ouest, Maroc, Afrique Centrale, France, Espagne, Italie et Etats-Unis.

African airlines’ performance updates by AFRAA – October 2022

Release date: 03 November 2022

Covid-19: According to the European Centre for Disease Control (ECDC), new Covid-19 Omicron sub-variant, BQ1.1 have been identified by the WHO and is currently present in 29 countries. This is likely to drive another increase in Covid-19 cases. In Asia and China in particularly, the virus is still present, though the number has reduced. In Africa, the infections remains low despite the low vaccination rate.  The total case-count has reached 630 million and 12.6 million worldwide and in Africa respectively. The global recovery rate is 98.9%. Only 24.2% of Africans have received at least one vaccine compared to the global average of 68.4%.

Ebola: The government of Uganda has reported 90 cumulative cases of the Ebola virus with 28 active cases on admission and 28 lives lost. The epicentres of Mubende and Kassanda are in a 21-day lockdown. 15 confirmed cases are now reported in the capital Kampala at the time of this report. No cross-border cases have been recorded.

The Uganda Medical Association is calling for a lockdown of Kampala to contain the spread. On 12 October, a High Level Communique on cross border collaboration for preparedness and response to Ebola virus was signed by Ministers of Health of Burundi, D.R. Congo, Kenya, Liberia, Rwanda, Sierra Leone, South Sudan, Tanzania, Uganda, Regional Economic Communities and partners. Airlines are encourage to closely monitor the situation in Uganda and take appropriate action when necessary.

Airline Performance: This October traffic and airlines capacity deployed reached 82.5% and 82.2% of the 2019 level respectively. Domestic market share is now at 37.6% capacity and 32.8%% of passengers carried while intra-Africa passengers carried represented 29.5% and corresponding capacity at 25.9%. Intercontinental traffic this month is 37.6% and capacity 34.7%. African airlines operations on international routes have now exceeded 2019 pre-covid level by 0.31%. 8 African airlines have exceeded the number of international routes they operated before Covid.

AFRAA estimates the revenue loss due to Covid for 2022 to be $3.5 billion, equivalent to 20% of 2019 full year revenue. The projected revenue loss for the third quarter of 2022 is approximately $800 million.

Jet A1 price continues the upward trend. Year to date, global average price per barrel is $142.1. Impact on global airlines fuel bill is estimated at $131.8 billion for the full year 2022.

Regulatory and Industry Developments

  • Mozambique e-Visa: The Government of Mozambique has developed an online platform for the issuance of e-Visas to tourist and Businessmen by end of October 2022.
  • South Africa e-Visa: The Department of Home Affairs (DHA) has informed the aviation community of its electronic visa system (e-Visa) implementation, which is being piloted in Nigeria.
  • Deployment of 5G C-Band wireless networks across the United States: The FAA has replied to a joint letter by AFRAA and other industry Associations on the deployment of 5G C-Band wireless network across the US. The letter acknowledged the concerns raised by AFRAA and its partners but emphasized that it was imperative for the aviation industry to take urgent steps to improve aircraft radar altimeter resilience from known harmful interference. The FAA advised airlines to stay abreast of this situation by working directly with aircraft manufacturers and suppliers, who are best placed to assist them retrofit their aircraft radar altimeters and continue safe operations in U.S. airspace beyond July 1, 2023.
  • Some ICAO 41st Assembly Decisions/Conclusions
    • Resolutions on LTAG and CORSIA: A resolution on a Long Term Aspirational Goal (LTAG) for carbon reduction and net-zero carbon emissions for international aviation by 2050 was adopted by the Assembly. The LTAG aligns international aviation with the Paris Agreement. The Assembly also reinforced its commitment to the CORSIA and increased its ambition by agreeing to stabilize emissions of international aviation at 85% of the 2019 level.
    • Public health and pandemic preparedness: The Assembly approved IATA’s call for ICAO to conduct a review of the effectiveness of the multi-layered health measures introduced by governments during the COVID-19 pandemic and captured in the CART guidance and associate documentation. The guidance is largely unchanged since the start of the pandemic. However, based on lessons learned during the pandemic, it is clear that some measures were highly effective while others had no impact on the circulation of the virus but imposed significant costs on carriers. The review would be important as a foundation for developing a more proportionate and consistent risk management framework than was implemented during COVID-19.
    • Accessibility: A resolution on passengers with disabilities was adopted and the Assembly agreed to establish a foundation for the development of harmonized accessibility measures under the ICAO leadership.
    • Data Protection: An IATA WP/73 on the challenges facing airlines due to conflicting national data protection legislation and the absence of an agreed, consistent data protection framework that accounts for specificities of international air transport was adopted. The Committee agreed that the actions presented in the Executive Summary of WP/73 should be considered and assessed by the relevant ICAO Panels and working groups.
    • Unruly and disruptive passengers: IATA WP/65 co-signed by IFALPA proposed three actions to deter unruly and disruptive passenger behaviour onboard flights in the post pandemic era. These are:
      • The implementation of public awareness campaigns to ensure travelers are informed of what constitutes prohibited conduct and the legal and other sanctions as per Standards and Recommended Practices in Annex 9 – Facilitation;
      • Ratification of the Montréal Protocol 2014 to remove any jurisdictional gaps; and
      • The implementation of a civil and administrative penalties regime as outlined in ICAO Doc 10117.

The Report of the Assembly noted that there was unanimous support for the substance and principles reflected in WP/65 and universal recognition of the need for States to keep their approach to responsiveness and deterrence measures for dealing with unruly and disruptive passengers under constant review.

  • Gender and Equality: WP/67 was presented by IATA and IFALPA and positioned the industry’s 25by2025 initiative as a practical step towards achieving better gender equality and women’s representation across the aviation value chain. Many States applauded the 25by2025 initiative as an important step and an excellent example championed by the industry. The Final Report invites Member States to encourage their industry players to actively engage in IATA’s 25by2025 campaign as well as similar initiatives.

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 44 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.

AFRAA Secretary General addresses the 52nd AASA Annual General Assembly

AFRAA Secretary General – Mr. Abdérahmane Berthé, addressed the 52nd AGM of the Association of Airlines of Southern Africa (AASA) on 14 October 2022, Cape Town – South Africa.

  1. STATE OF THE INDUSTRY

The airline industry is on a recovery trajectory from the impacts of the Covid-19 pandemic. As at September 2022, AFRAA data reveals that traffic and airlines capacity deployed reached 82.52% and 82.1% of the 2019 level respectively. African airlines have now resumed operations to 99.2% of routes operated before the pandemic. Eight African airlines have exceeded the number of international routes they operated before Covid.

Before the Covid19, African traffic represented about 2.5% of world traffic. In 2021, Africa’s contribution to global traffic dropped to 1.8%.

African Aviation is recovering from the Covid19 even if we are not still at the level of activities in 2019.

FUEL

The Russia-Ukraine crisis has brought up a new challenge impacting the pace of our industry’s recovery. The steep rise of fuel prices from 78$ a barrel in 2021 to an estimated average of 142$ in 2022 is deteriorating airlines’ financial performance.

BLOCKED FUNDS

Another challenge is the issue of blocked funds in many countries due to the combination of a strong USD and the inflation of imported commodities prices. We call upon African governments to consider Aviation as a priority sector and reduce the level of blocked funds.

REVENUE LOSSES

African Airlines passenger traffic dropped 60.2% in 2020 due to the Covid19. By 2022, the activity is recovering and shows an improvement of the load factors. However, we are not yet at the levels of 2019.

The Passenger Revenue Losses for 2021 were USD 8.6 billion, representing 49.8% of 2019 revenues. We estimate the same at USD 3.5 billion for 2022 representing 20% of the 2019 full year revenues.

CONNECTIVITY

The percentage of international routes operated by African airlines compared to Feb 2020 reached 99.2% in September 2022.

However, connectivity is still low in Africa. Currently, up to 22% of Africans traveling between two African cities are forced to travel through non-Africa HUBs either in Europe or the Middle East. This situation can be reversed only through Networks and Schedules Coordination at African hubs.

Connectivity is intricately aligned to trade, business development, and tourism. Currently, the Intra-Africa trade is modest at 18%, which is very low compared to Europe (64%) or Asia, which is above 50%.

Indeed, there are no significant Intra-Africa tourism flows.

If there is no Intra-African trade, business, and tourism development, any traffic growth will strengthen the existing routes and will not serve the intra-Africa connectivity.

GDP PER CAPITA

Before the Covid19, the average GDP per capita in Europe was Eur30,000. Twenty-five (25) African countries had per capita income of less than $1,000, while only eight (8) had per capita income of more than $5,000.

A strong and consistent middle-class citizenry in the African continent is needed to boost the Intra-Africa traffic.

AFRICAN AIRLINES

Some constraints impact African Airlines’ growth prospects.

  • African airlines operate with an average lower load factor than the world average.
  • African operators’ average cost of the available seat-kilometer (CASK) is very high compared to other regions.
  • Competing for market shares, African airlines charge less US Cents per Passenger-Kilometer-Carried than other regions’ air carriers on equivalent travel distances.
  • Despite this, the average fare of passenger tickets in Africa, including taxes, is higher on equivalent travel distances.
  • Consequently, with high fares and lower GDP per capita, air transport is not affordable for African citizens.

In 40 years, the continuous reduction of African airlines’ intercontinental market shares set the trend of marginalization of African Aviation on the international scene.

From 3.5% in the early 1980s to 2.5% in 2019, Africa’s contribution to global traffic is currently at around 1.8%.

From 45% in the nineties, African Operators’ market share of traffic to/from Africa dropped to 20% pre-Covid in 2019, of which the Top 3 African Airlines accounted for more than 50%.

 

2. OUTPACING GLOBAL GROWTH AS AFRICAN AIRLINES EVOLVE

So, how do we get to better skies for African Operators?

 The current air transport status and trends require a massive transformation of the industry to:

  • Push the boundaries by thinking out of the box.
  • Perform beyond the status quo.

The recovery and traffic growth projected for the future can be realized if the regulatory environment is conducive and Air Operators become more sustainable.

AUC 2063 AGENDA FLAGSHIP PROJECTS:

Market access is a critical challenge for African Airlines. The Single African Air Transport Market (SAATM), launched by the African Union Commission (AUC), will positively impact air transport in Africa, increasing connectivity and reducing journey time and airfares.

Complementing SAATM, the other AU Agenda 2063 flagship projects that envision an integrated Africa with seamless borders include the African Continental Free Trade Agreement (AfCFTA) and the Free Movement Protocol for people and goods.

As the African Continental Free Trade Area unfolds and increases Intra- African trade, new routes will emerge to serve the resultant demand, and connectivity will improve.

AFRICAN AIRLINES SUSTAINABILITY

At AFRAA, our vision is “a sustainable, interconnected and affordable Air Transport industry in Africa where African Airlines become key players and drivers to African economic development.”

We believe stakeholders’ engagement and commitment are vital drivers to transforming the industry.

The first Laboratory on Air Transport Sustainability in Africa was held from 27 June to 01 July 2022 at the AFRAA headquarters in Nairobi, Kenya. The LAB was necessitated by the urgent need to stop the marginalization of African airlines, restore industry competitiveness, re-gain and retain Intra-Africa traffic and grow Africa’s global market share

The one-week event brought together air transport, trade, and tourism stakeholders from across Africa to develop a roadmap for the sustainability of the African air transport industry.

At the end of 5 days of stocktaking, critical analysis, prognosis, and consensus building, the LAB developed a roadmap with specific actions assigned to stakeholder organizations, with defined timelines for execution. The roadmaps also contained implementation monitoring mechanisms and expected benefits upon complete execution.

A Steering Committee co-chaired by AFRAA and AFCAC, made up of all relevant stakeholder organizations in aviation, trade, tourism, and DFIs, will oversee the implementation of the roadmap. AFRAA remains dedicated to steering the roadmap, which will change the narrative of African aviation.

I take this opportunity to invite industry stakeholders to the 54th AFRAA Annual General Assembly & Summit scheduled to take place from 11-13 December 2022 in the country of Teranga – Senegal on the theme “Acing the Roadmap to Sustainable African Aviation”. Deliberations at the AGA will better prepare us to continue to rebuild Africa’s aviation to make the travel ecosystem more resilient and viable.

  • CONCLUSION

A successful and viable African aviation industry requires concerted efforts and close collaboration among all stakeholders, from governments, regulatory authorities, airlines, airports, air navigation service providers, suppliers of a wide range of aviation products and services, and customers.

As I conclude, I wish to reiterate my thanks to the Association of Airlines of Southern Africa for inviting me to this Assembly being held under the theme: “My African Dream”. I look forward to deliberations and interactions during this Assembly that will reset, refocus, and reimagine our industry.

Thank you for your kind attention.

Address

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

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

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afraa@afraa.org

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

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