Press Release: AFRAA and ECA publish report on the financial impact of COVID-19 on African airlines and insights for recovery

03 March 2021, Nairobi, Kenya: The Economic Commission for Africa (ECA) and the African Airlines Association (AFRAA) have published a report on the financial impact of COVID-19 pandemic on African airlines and insights for the recovery from the liquidity crisis. This follows a survey that was jointly conducted by the two organisations to quantify the indebtedness of African airlines from COVID-19 impacts which forms basis for campaigns for the much-needed financial support.

Entitled: “Policy research paper COVID-19 and African airlines overcoming a liquidity crisis,” the report focuses on the indebtedness of airlines to banks, financial institutions, aircraft leasing companies and aircraft manufacturers. It therefore sheds light on the financing options and cost structures of the airlines. The value addition of the paper lies in its overarching perspective, which consists in analysing, through a financing lens, the COVID-19-induced challenges faced by African airlines and also the efforts undertaken to address these challenges.

The report reveals huge differences in the size and structure of the debts of airlines. This suggests that a one-size-fits-all solution may not be appropriate to address their liquidity challenges. Financial support must therefore be tailored to the specific features of airlines.

AFRAA’s Secretary General, Mr. Abdérahmane Berthé stated: “AFRAA, in collaboration with industry stakeholders and air transport organizations, continues to advocate for direct government support for airlines and for them to create a platform to coordinate their efforts towards the survival of the industry, in particular by linking airlines and financial institutions and facilitating access to available funds.” AFRAA has further made appeals to development finance institutions to created facilities to help mitigate the impact of the pandemic on vital sectors of the economies of countries on the continent.

AFRAA estimates that African airlines made a revenue loss of US$10.21 billion in 2020 due to the impacts of the pandemic. “Financial support to the industry is critical for survival. Some of the measures that we are appealing to governments to implement include: providing grants, loans and loan guarantees, issuing equity and also deferring or waiving payments of debts, rents, charges and taxes by airlines.” added Mr. Berthé.

The report further articulates strategies and plans for the survival, recovery and sustainability of the industry. While the aviation system is multidimensional the report focuses on airlines, many of which are facing insolvency as their operations have ground to a halt as a result of travel restrictions to curb the spread of the pandemic.

Link to download the published report:

EN: https://repository.uneca.org/handle/10855/43917 

FR: https://repository.uneca.org/handle/10855/43918 

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 47 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 – AFRAA Appoints Raphael Kuuchi as New Director Government, Legal and Industry Affairs

04 January 2021, Nairobi, Kenya: The African Airlines Association (AFRAA) is pleased to announce the appointment of Mr. Raphael Kuuchi as Director Government, Legal and Industry Affairs in Consulting capacity effective 01 January 2021.

Raphael Kuuchi joins AFRAA from IATA where he served as the Association’s Special Envoy to Africa on Aero-Political Affairs for 2 years and IATA Vice President – Africa for 4 years. He led IATA engagements with top government, regional and industry leaders in driving key
initiatives aimed at unlocking the full potential of African aviation. He was also IATA’s focal point on the implementation of the Single African Air Transport Market (SAATM).

Before joining IATA, Raphael served as AFRAA Commercial Director in 2005 and later as Director Commercial, Corporate and Industry Affairs till February 2014. In this capacity, Raphael initiated and oversaw many projects in airlines business development, commercial operations, IT and communication, liberalization/ market access, aero-political/regulatory affairs and training across Africa.

“We are pleased to welcome back Raphael to AFRAA fraternity. He brings onboard the extensive industry experience to complement AFRAA team to better exercise our mandate to promote, serve African Airlines and champion Africa’s aviation industry,” said Mr.
Abdérahmane Berthé – AFRAA Secretary General.

“I look forward to re-join the AFRAA team and to continue the exciting challenge to contribute to the development of air transport in Africa at a time much needed as the industry recovers from the COVID-19 crisis.” added Mr. Kuuchi.

Mr. Kuuchi holds an MBA from Henley Management College, UK and a B.Sc. degree in Business Administration. He is a Fellow of the Chartered Institute of Logistics and Transport (FCILT) UK.

Raphael Kuuchi brings to AFRAA a wealth of experience in air transport management, operations and consulting. He complements AFRAA Senior Management team comprising of the following:
1. Mr. Abderahmane Berthé – Secretary General
2. Mr Gaoussou Konate – Director Technical & Operations
3. Ms. Maureen Kahonge- Senior Manager Business Development & Communications
4. Mr Dominic Simba – Senior Manager Corporate Finance & Administration

The 2020 African Aviation Industry Group (AAIG) Aeropolitical Forum

This year’s edition of the African Aviation Industry Group (AAIG) Aeropolitical Forum was held on the 11th of November 2020. The event was attended by 140 participants from African airlines, Civil Aviation Authorities, Airports, Airline Associations, Ministries and related agencies, private sector groups, non-governmental organizations, aviation service providers and the media.

Every year, the forum is held on the sidelines of the AFRAA Annual General Assembly. The forum presents a unique opportunity for key stakeholders in African Aviation to articulate, in detail, the industry issues highlighted by the AFRAA AGA. The forum then consolidates recommendations for strategic priorities in the coming year that can improve the operating and regulatory environment for African Aviation.

The 2020 AAIG forum was held under the theme – “African Aviation’s Recovery Strategy – The Way Forward”.

KEY TAKEAWAYS AND RECOMMENDATIONS

i. Continued financial support for all the key stakeholders of the African aviation industry (through direct cash injections, credit or loans and deferrals or discounts on charges and concessions) remains critical. We urge States and donor institutions to provide the funds pledged to ensure survival, business continuity of key stakeholders of the African aviation industry. Financial support for the stakeholders concerned goes beyond just the COVID-19 pandemic response, it is an imperative to safeguard the gains made by Africa on safety over the years.

ii. To restore connectivity through the opening of borders, the next phase of the COVID-19 pandemic response should focus on consistency and harmonization of entry and exit protocols, mutual recognition and trust framework between states, alleviation measures and promoting rapid cost-effective testing as the alternative to quarantine. The COVID-19 crisis presents an opportunity to boost intra-Africa connectivity via harmonized health protocols across Africa.

iii. Continued focus on the implementation of the YD and the SAATM is more important than ever, particularly as a key cornerstone to revive the sector. The State SAATM readiness index can be used as a tool to identify a “Club of the Ready and Willing “(CREW) and pursue incentives for the promotion of new intra-Africa routes (tax incentives, priority for financing, etc.)

iv. Promotion of a synergy and better coordination between the implementation of the SAATM and other initiatives of the AU 2063 Agenda such as the AfCFTA and Free Movement Protocol. The AAIG will highlight the available opportunities between these AU flagship projects for Aviation and promote platforms for engagement.

v. Creating a cost competitive landscape for African aviation by reducing costs across Africa (e.g. finding solutions to increase traffic for more volumes could result in reduction of taxes and charges for users). The AAIG will facilitate interactions between OEMs, Airlines, Airports, ANS, Financiers and Governments to drive down operating costs in Africa, with set KPIs.

vi. Airline cooperation is vital – activities such as interlining, code-sharing, other forms of partnership should be promoted. Airlines repositioning and rethinking is also critical.

vii. African airlines should mainstream Cargo as a strategic pillar for growth.

viii. Cooperation for the improvement of seamless airspace through the deployment of infrastructure and development of technical staff.

ix. Multi-sector collaboration and a holistic cross industry framework (sharing of data, harmonization of processes for a seamless experience, etc.) is important and should be promoted (e.g. linking aviation with other sectors such as finance, trade, hospitality and tourism).

x. Digitization and technology present new opportunities for the industry and should be embraced to support enhanced efficiencies, increased revenues and reduced costs.

About the AAIG
The AAIG brings together airlines through their associations AFRAA, IATA, AASA, airports through ACI-Africa, ANS providers through CANSO Africa, OEMs, DFIs, and individuals passionate about Aviation in Africa, for a strong advocacy power, and common initiatives.

Press Release: AFCAC, IATA and AFRAA Join Forces to Promote Aviation Safety and Connectivity Across Africa

The International Air Transport Association (IATA) and African Airlines Association (AFRAA) have joined forces with the African Civil Aviation Commission (AFCAC) on a three-year safety project. The objective is to provide technical support to the African air operators of states party to the Single Africa Air Transport Market (SAATM)  to ensure that they achieve and maintain global aviation safety standards.

Launched today, the initiative is backed by African Development Bank grant funding provided to AFCAC and is specifically for carriers in countries that have signed up to the African Union’s (AU) flagship Single African Air Transport Market (SAATM) program.

The project will identify eligible airlines, conduct gap analyses and recommend corrective actions for each participating carrier to prepare them for IATA Operational Safety Audits (IOSA) or IATA Standard Safety Assessment (ISSA) evaluation.

In addition, participating airlines’ personnel will receive quality and safety management systems training.   IATA, AFRAA, and AFCAC will also host workshops and training sessions held at their facilities in Nairobi, Johannesburg and Dakar.

“Depending on the size of their organization and aircraft they operate, airlines wanting to take advantage of the SAATM’s market and commercial expansion benefits are required to be certified either through IATA’s Operational Safety Audit (IOSA) or Standard Safety Assessment (ISSA) programs. Both safety programs are globally recognized, and part of the African Safety Targets of  Abuja Ministerial Declaration hallmarks of aviation safety. We are committed to opening up Africa’s skies through SAATM and supporting the region’s airlines in doing so,” explained Tefera Mekonnen Tefera, Secretary-General of AFCAC.

“This project will not only bolster safety standards in line with the Abuja Declaration on Safety in Africa. It will also help operationalize the SAATM and reinforce the development of sustainable commercial air transport in Africa, which is crucial to the recovery and future growth of economies throughout the continent that have been devastated by the COVID-19 crisis,” said IATA’s Regional Vice President for Africa and the Middle East, Muhammad Ali Albakri.

“The ultimate goal of the project is to improve safety levels for the airline sector in Africa. Indeed, the 2012 Abuja Declaration safety targets stipulate that all African-based airlines, attain IOSA or ISAA certification by the end of 2022,” said Abdérahmane Berthé, Secretary General, AFRAA.

 IOSA is an internationally recognized evaluation system that assesses airlines’ operational management and control systems from a safety perspective. The auditing process creates a single worldwide standard.  IOSA’s roll-out and adoption across Africa over the past eight years has led to a significant improvement in the region’s safety performance for commercial airlines. African carriers on the IOSA registry had an accident rate of nearly half that of non-IOSA operators for 2015 -2019. IOSA has also minimized the number of duplicate audits improving operational efficiency and reducing costs for participating airlines.

ISSA is a voluntary safety evaluation program derived from IOSA but tailored for operators of smaller aircraft that are not eligible for IOSA.

IOSA is a requirement for IATA and AFRAA membership. Therefore, the primary beneficiaries of this initiative are non-member airlines of these organizations in Africa.

SAATM was launched in January 2018 and is critical to the AU’s integration agenda. It provides a logistics pillar which is crucial to the success of the Africa Continental Free Trade Area (AfCFTA), which is envisaged to be the world’s largest single market for goods and services, facilitated by the movement of people and promoting trade and economic integration.  To date, 34 of the AU’s 55 member countries have signed the commitment to establish the SAATM.

 

Aviation leaders to define the roadmap for the recovery of the African air transport industry at AFRAA’s 52nd AGA

Nairobi, Kenya – 03 November, 2020: The African Airlines Association (AFRAA) and TAAG Angola will host the 52nd Annual General Assembly in a virtual format on the 09 and 10 November 2020. The premier African air transport industry event will gather over 500 high profile African and global aviation leaders to draw a roadmap for a successful restart and recovery of the African aviation industry.

Held under the theme, “Redefining Air Transport for a New Era”, the assembly is set to deliberate on strategies to navigate the impacts of COVID-19 and embark on a new era for the industry.

Speaking ahead of the summit, Abdérahmane Berthé, AFRAA’s Secretary General said:” AFRAA has been at the forefront of key efforts to support the African aviation ecosystem during these exceptional times. This Assembly will be the platform through which we will chart a new course, determine the strategic next steps towards a more resilient and vibrant African air transport market.”

On his part, TAAG Angola Chief Executive Officer Mr. Rui Carreira commented: “2020 has been a very difficult year. African carriers faced daunting challenges way before COVID-19. The pandemic has severely impacted the air transport industry and African airlines have been adversely affected in their operations. This summit will be the opportunity for our fraternity to reset and map the way forward.”

The spectrum of deliberations at the assembly will focus on issues of concern to the industry including: collaborative strategies for recovery and sustainability; Air transport recovery trends and building blocks for the continent, alignment of the tourism and the air transport sectors for recovery, getting back to business beyond 2020 among other high-level discussions.

Registration for the AGA is open through the dedicated event website: https://aga52.afraa.org/.

 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 45 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.

 

About TAAG Angola

TAAG Angola Airlines S.A (Portuguese: TAAG Linhas Aéreas de Angola S.A.) is the state-owned airline and flag carrier of Angola. Based in Luanda, the airline operates a mixed fleet of Boeing and Havilland Dash 8 Q400 on domestic services within Angola, medium-haul services in Africa and long-haul services to BrazilCuba, and Portugal. The airline was originally set up by the government as DTA – Divisão dos Transportes Aéreos in 1938, rechristened TAAG Angola Airlines in 1973, and gained flag carrier status in 1975. TAAG is currently a member of both the African Airlines Association and the International Air Transport Association. The airline has commercial partnerships with Kenya Airways, South African Airways, LAM, Royal Air Maroc, Air France, KLM and Lufthansa and Brussels Airlines.

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