05 March 2021, Addis Ababa, Ethiopia: AFRAA’s Secretary General, Mr. Abdérahmane Berthé and Ethiopian Airlines Group CEO, Mr. Tewode Gembremariam, accompanied by their respective leadership teams held a consultative meeting at Ethiopian Airlines headquarters in Addis Ababa.
Leaders at the meeting noted AFRAA’s on-going projects geared towards fostering of collaboration among its members, cost reduction and creation of synergies among African airlines. Various areas of advocacy by AFRAA for the sustainability of African aviation through promotion of intra-Africa travel, reduction of high operating costs and infrastructural development were discussed.
The Secretary General highlighted AFRAA’s initiatives and actions in response to the COVID-19 pandemic to support the air transport industry. Key among the workable solutions by the Association for resilience to the industry is AFRAA’s 9-Pillar recovery plan that outlines a framework of various areas of intervention, measures to be taken as part of urgent, immediate, and consistent actions for the survival and rebound of the industry. Other initiatives that have been launched since the on-set of the pandemic include: AFRAA MRO joint venture, AFRAA connectivity index, AFRAA connectivity portal, AFRAA capacity sharing portal: AFRAA project for reduction of air navigation bills. Mr Berthé invited Ethiopian Airlines to take part as a pilot airline for AFRAA’s new projects.
At the occasion of the visit, AFRAA and Ethiopian Airlines signed a Memorandum of Understanding (MoU) on training that will facilitate a framework of collaboration between AFRAA and Ethiopian Airlines Aviation Academy to achieve common objectives on training of aviation professionals across the African continent. The collaboration will support the development of sustainable and safe air transport system in Africa and thereby effectively contribute to the continent’s economic development and integration.
According to Mr. Abdérahmane Berthé, “There is a need to develop aviation professionals within Africa and bridge the training gaps in the continent and beyond. Hence, a partnership between AFRAA and airline aviation training centers would be a way forward to overcome the challenges relating to the training of next-generation aviation professionals.”
“AFRAA welcomes cooperation with Ethiopian Airlines on coordination of Ethiopian Airlines Aviation Academy training activities, exchange of programs to attain our common objectives and enhance the effectiveness of the Association in serving the interests of the African aviation sector,” Mr Berthé added.
AFRAA Secretary General commended Ethiopian Airlines for the agility and resilience in navigating the pandemic and reassured Mr. Gebremariam of AFRAA’s continued support to execute the Association’s mandate to ensure the African continent is served adequately with safe, reliable and economical air transport.
The MoU was signed by Mr Mesay Shiferaw, Managing Director – Ethiopian Aviation academy and Mr. Abdérahmane Berthé, AFRAA Secretary General.
The African Aviation Industry Group (AAIG) held a high-level webinar to deliberate on practical solutions for the reduction of high cost of air transport operations in Africa. Staged under the theme: “Achieving Affordable Air Transport across Africa”, stakeholders at the webinar agreed on a set of actions for implementation with defined timelines to achieve the goal of a sustainable African aviation industry.
In addition to the main topic of the webinar, which is the high cost of aviation in Africa, Aviation stakeholders at the webinar further identified key challenges affecting the sustainability of African aviation such as safety and security concerns, poor intra-Africa connectivity/market access limitations and inadequate infrastructure, among others.
The forum articulated the following recommendations as a matter of strategic priority:
1. High operational costs in Africa
Aviation stakeholders have been severely impacted by the COVID-19 pandemic and the industry restart and recovery must be viewed as an opportunity for the aviation industry ecosystem to address the issue of high operational costs in Africa.
Excessive and unjustified taxes, charges and other government-imposed fees and levies on international aviation have negative impacts on the industry’s competitiveness and national economies.
i. States are urged and encouraged to adhere to ICAO’s Policies on User Charges (Doc 9082) and ICAO’s Policies on Taxation on International Air Transport (Doc 8632). These are the reference documents which can ensure that all States levy fully justified aviation charges and taxes.
ii. It is therefore important that there is an appropriate regulatory body in each State to oversee and ensure the implementation of these policies. Only under such favorable regulatory environment, can we expect to see lower industry operating costs translated into lower fares for passengers.
iii. The African Union can play a pivotal role in achieving this objective especially by providing the right platform for States, RECs and economic regulatory bodies to align taxes, fees and charges across the continent with the view of promoting lower fares, stimulating travel, creating jobs and boosting economic activities.
iv. African Aviation also faces a high cost of financing: Aviation is very capital intensive and access to competitive financing will contribute to reduce the operating cost to African airlines. The risk perception is very often biased and leads to high interest rates, which generate high cost of ownership and high fares, if any financing at all. African financing Institutions have a role to play in de-risking aviation sector, in other to allow more favourable terms for the sector.
v. In respect of Operators’ costs structures, Airlines, Airports, ANS, and services providers need to constantly monitor their costs structures, in order to operate at maximum efficiency. They also need to extend cost-saving and cost avoidance measures to operators. High fuel costs for African Aviation is also extremely burdensome on the operating cost structure of airlines.
vi. OEMs on their part should extend more accessible and affordable product support to airlines.
vii. A multi-sectorial engagement of all concerned stakeholders: airlines, service providers, governments and policy makers to converge to review all cost components and discuss strategies for reduction of high taxes and charges to achieve reasonable cost structure for air transport.
2. Air Transport Affordability
For equivalent distances, it is a fact that air ticket fares are higher in Africa compared to other regions. Due to the prevailing low GDP in most African States, its citizens cannot afford to fly as often as citizens from other continents. Stakeholders must address the fact that African citizens pay the highest fares to travel by air, regionally and internationally.
i. Appropriate measures need to be taken by governments to reduce the cost of aviation to make travel more affordable for African citizens.
ii. Appropriate measures need to be taken by the airline industry to enhance airline efficiencies. This has the potential to reduce costs so that the air transport sector can be made accessible and more affordable to a wider demographic of travelers across Africa. In addition, the removal of other recently introduced passenger costs, such as PCR test and quarantine, will no doubt accelerate traffic growth.
iii. To achieve the objective of aviation sustainability and air transport affordability through the growth of air traffic and revenues for all the industry players, specific targets should be set. An Implementation Action Plan with key performance indicators and timelines should be set by the AAIG members on:
– Reduction of cost of operations
– Reduction of air fares
iv. The affordability of air transport is also dependent on the economic prosperity of the population. Government are urged to promote and implement policies to encourage investments in all economic sectors to create jobs, to create economic mobility, to reduce poverty, to grow the middle class.
3. Addressing other barriers constraining the sustainable growth of African aviation
Other challenges being faced by the air transport industry need to be addressed, including:
i. Safety: The joint interventions of industry stakeholders and governments have resulted in improved safety performance for Africa. The ICAO requirement of 60% Effective Implementation (EI) performance for SAATM implementation underlines Africa’s commitment to maintaining safety as the first aviation priority in the Region.
To address public perception about the safety of African operators, aviation stakeholders need to continue coordinated efforts to safeguard the commendable performanceachieved from 2015 to 2018. States are urged to implement the Abuja Aviation Safety targets, the ICAO USOP Audit findings and the Namibia Declaration on aviation security.
ii. Intra-African connectivity: Full implementation of SAATM complemented by AfCFTA rollout will unleash the multiplier benefits of air transport for economic growth and leapfrog the inclusion of isolated African countries or regions in the international market. States and airlines that are prepared to proceed are encouraged to do so.
iii. Infrastructure: Much of the aviation infrastructure in Africa is below international standards yet attracts higher user cost than elsewhere. Infrastructural development should take into consideration the industry’s traffic needs and dynamics of the markets to build functional, environmentally friendly and cost effective infrastructure.
iv. Airline economies of scale: Whilst remaining competitive, African Airlines must increase their level of cooperation. They must put in place appropriate strategies to reduce their costs and increase their frequencies and improve connectivity. Among others, airlines are entreated to forge alliances and consolidate their businesses, optimize ticket-selling process, jointly procure spares and supplies, adopt modern cutting-edge technology and advocate for States to fully implement SAATM.
The event was attended by over 250 participants comprising representatives of African aviation
institutions, Development agencies, African airlines, Civil Aviation Authorities, Airport Operators,
Airline Associations, government entities, Aircraft manufacturers and aviation solutions and
service providers.
About the AAIG
The African Aviation Industry Group (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.
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.
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.
Nairobi, 16 February 2021 – Astral Aviation Limited has signed an agreement with UNICEF to support the launch of its Humanitarian Airfreight Initiative for the prioritization of delivery of COVID-19 vaccines, essential medicines, medical devices and other critical supplies to respond to the pandemic.
“Delivery of these life-saving vaccines is a monumental and complex undertaking, considering the sheer volumes that need to be transported, the cold chain requirements, the number of expected deliveries and the diversity of routes” said Etleva Kadilli, Director of UNICEF Supply Division. “We are grateful to these airlines for joining forces with the UNICEF Humanitarian Airfreight Initiative to support the roll-out of COVID-19 vaccines.”
“We are truly honored for being selected by UNICEF to participate in the Humanitarian Airfreight Initiative, based on our track-record in performing humanitarian flights within Africa and the Middle East in the past twenty years. We will be placing our entire fleet of B747F, B767F, B727F, DC9F, CRJ-200, Fokker 50 and Fokker 27 on high priority, which is critical to the timely and secure delivery of vaccines and critical supplies, as we consider it our moral-obligation to ensure that no person in Africa is left-behind due to lack of aircraft capacity, re-affirms Astral Aviation’s CEO, Mr Sanjeev Gadhia”
The UNICEF Humanitarian Airfreight Initiative brings together the airlines covering routes to over 100 countries, in support of the COVAX Facility – the global effort aimed at equitable access to COVID-19 vaccines. Based on the COVAX Facility’s indicative distribution and first round allocation plan, 145 countries will receive doses to immunize around three per cent of their population, on average, starting in the first half of 2021, subject to all requirements being met and final allocation plans.
In addition to prioritizing shipments of these life-saving supplies, Astral Aviation will take measures such as temperature control and security, while also adding freighter capacity to routes where needed.
Safe, timely and efficient transportation of life-saving supplies is critical to supporting access to essential services for children and families. COVAX deliveries and the subsequent vaccination of frontline workers will support health and social care systems to safely resume these critical services.
“Astral’s Pharma Product combined with the expertise of its Pharma team provides a reliable and efficient service for temperature sensitive products across the network, which includes safe re-packing and re-icing service which will enhance the cool-chain value of vaccines for onward distribution within Africa”, according to Michael Mutahi, Chief Operations Officer of Astral Aviation.
***END***
About Astral Aviation
Astral Aviation is a dedicated all-cargo airline which is based at the Jomo Kenyatta International Airport in Nairobi, Kenya and operates a fleet of 14 cargo aircrafts to over 50 destinations in Africa.
Celebrating its 20th Anniversary in 2020, Astral has lived up to the expectations of its clients by offering a resilient and agile strategy during the pandemic by offering on demand charters for Covid related medical products while maintaining its scheduled network to 15 destinations in Africa.
Astral is the fastest growing airline in Africa with a diversified fleet which ranges from 5 tonnes to 110 tonnes. The latest addition to its fleet is the B767-200F. It will be deployed for vaccine charters to and within Africa.
RwandAir is set to launch a new route into Central Africa with flights to Bangui.
The launch of the new intra-African service to the Central African Republic is part of RwandAir’s recovery from the impact of the COVID-19 pandemic as it opens up new markets and destinations.
The Kigali-based airline will fly to Bangui the capital of Central African Republic, twice a week from February 3 2021, with flights operating on Wednesdays and Sundays.
Tagged to the existing route to Douala in Cameroon, the flight will be operated by one of the airline’s existing Boeing 737 aircraft, offering customers a choice of seats in two cabins, Business Class and Economy Class.
Yvonne Manzi Makolo, RwandAir CEO, said: “The launch of our new twice-weekly service to Bangui will open up a new lucrative market for RwandAir and help stimulate trade in the region and beyond Africa”.
“Thanks to RwandAir’s quick and easy connections via our Kigali hub, we believe this new route will strengthen the growing trade ties in Africa and bolster Rwanda’s growing economy. Customers will benefit from more choice, through our premium onboard service, and will fly in a safe and hygienic environment thanks to our world-class cleaning measures.”
Since August 1 2020, RwandAir has gradually resumed commercial flights across its global network, including most of its African routes, as well as some long-haul destinations such as London Heathrow, Brussels and Dubai.
To ensure the health and safety of its customers as its number one priority, RwandAir has also published a Five-Step Health & Safety Guide to provide for a clean and secure onboard experience.
Tickets for Bangui are now available for sale through rwandair.com, sales offices and travel agencies, and include complimentary travel insurance.
Casablanca, le 06 Janvier 2021 – Royal Air Maroc lance, à compter du 28 mars 2021, une nouvelle route aérienne directe reliant Casablanca à Dubaï. La Compagnie Nationale mettra à la disposition de ses clients trois fréquences par semaine.
Les vols au départ de Casablanca seront opérés tous les mardis, jeudis et dimanches, avec une durée de vol de sept heures et demie. Le décollage sera programmé à 20h05 (heure du Maroc) pour une arrivée à Dubaï à 06H35 (heure locale).
Quant aux vols au départ de Dubaï, ils seront programmés tous les lundis, mercredis et vendredis, avec une durée de vol de huit heures. Les vols décolleront à 08h35 (heure locale) pour une arrivée à Casablanca à 13h35.
Les vols seront effectués par des avions de type Boeing 787 Dreamliner, avion de dernière génération, performant et écologique, offrant une excellente prestation de confort et de sécurité.
Cette nouvelle route aérienne répond aux attentes de la communauté marocaine établie aux Emirats Arabes Unis ainsi qu’à l’ensemble des voyageurs touristiques et d’affaires marocains et émiratis.
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
Télécharger l’article complet ici: [publications-sc type=”Jeune-Afrique-Interview”]
Le transport aérien est de loin le mode le plus efficace pourles trajets internationaux et représente environ 40% de part de marché de tous les modes de transport. La contribuon économique du transport aérien au connent était évaluée à 63 milliards de dollars avant la pandémie de la COVID-19. En effet, le connent devra se concentrer sur le transport aérien en tant que l’un des principaux moteurs de la reprise et du développement socio-économique.
Les compagnies aériennes africaines étaient déjà dans une situation très fragile avant la pandémie de la COVID-19 qui a plongé le secteur aérien dans une spirale pénible. En novembre 2020, l’AFRAA esmait les pertes de revenus pour l’année 2020, pour les compagnies africaines à 10 milliards de dollars en raison du coronavirus . Conscient du rôle de l’aviaon dans la facilitaon du
commerce et la croissance de nos économies, l’AFRAA connue à jouer un rôle central pour soutenir les compagnies aériennes africaines à traverser ces turbulences en traçant une voie durable pour l’industrie grâce à des mesures spécifiques.
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.
The Secretary general of AFRAA discusses how COVID-19 has affected African airlines and progress toward a single African market for commercial aviation.
Here is a rush transcript of our interview with Abderahmane Berthe.
Victoria Moores: Good morning. My name is Victoria Moores and I’m the European Bureau Chief with Air Transport World magazine. And today I have with me Abderahmane Berthe, who is the secretary general of AFRAA, which is the African Airlines Association. Good morning, Mr. Berthe.
Abderahmane Berthe: Good morning, Victoria. Victoria Moores: So we find ourselves in a conversation this morning, remotely, because of the situation with COVID. I was wondering, just as a general overview for our listeners, what is the situation with COVID at the moment across Africa? Because it’s a huge continent with lots of different countries. Where is the least and the worst affected by the virus?
Abderahmane Berthe: Thank you. The COVID-19 was declared a pandemic on the 11 March by the World Health Organization and immediately many countries closed their air borders and ground, and activities were very low at that time, because member airlines cannot operate. And since July, we have seen a restart of activities from our members, but still the level of activities is very, very low. We have not yet attained 50% of traffic compared to 2019. So the airlines have been without any revenues for many months. So today the real issue, challenge is a liquidity crisis to restart activities. And during this downtime period, our association has been at the forefront urging the States to support the airlines and also the financial institutions to put in place financial funds to support activities. AFRAA has been also active on the high-level task force, set up by the African Union Commission, which made some recommendations to states to assist African airlines. Abderahmane Berthe: We, at AFRAA, we have been making some assessment and we think that the risk for airlines is to lose $9 billion dollars of revenues in 2020, compared to 2019. And the fact is, today, that the load factors are very low, even if there is a restart and also the revenue per passenger is very, very low. So airlines are restarting, but they are making losses on the routes they are operating today. And we have only 73 routes which [have been] reopened since September, and we are facing also the challenge of connectivity because all destinations are not yet reopened by member airlines.
Victoria Moores: Mm-hmm (affirmative). You mentioned that you have 73 routes operating. How does that compare with the normal connectivity within Africa? How many routes would your members normally be operating? Abderahmane Berthe: Normally our members are operating through their hubs to many, many countries. Before COVID-19, almost 22% of passengers were connecting through hubs out of Africa. And today this percentage is increasing, because they are not getting the ideal connections from hubs within Africa, so they have to go out of Africa and come back. So, at AFRAA, we are working on this challenge and we have set up a route network coordination meeting last week with all our members to see how to fill the gaps of connectivity within the continent. Victoria Moores: Mm-hmm (affirmative). Because connectivity is a very important topic for African airlines in general, we’ve really seen a lot of effort from AFRAA, from IATA, from other associations trying to push, to increase the number of routes and the amount of connectivity within the continent through what’s called the SAATM, the Single African Air Transport Market. Have you seen any further action towards SAATM through this, or has that really put everything to the hold, compared with the pressures of COVID. Abderahmane Berthe: Before COVID, SAATM implementation was very slow, today we have 34 countries which have signed, committed to SAATM, only 18 countries have in fact modified their bilateral air service agreements to implement the SAATM. We have a working group, under the leadership of the African Civil Aviation Commission, to put in place joint prioritized actions, so that we can implement the SAATM as soon as possible. During this COVID period, the group has been continuing to work on SAATM implementation. We have worked one month ago on some KPIs for the implementation of the Yamoussoukro Decision. And, at AFRAA, we really think that because of the connectivity challenge we are talking about, it’s a very important to implement SAATM. COVID is an opportunity for all states and the all the industries to better understand that implementation of SAATM is key to improve connectivity, intra-Africa. So we are pushing for that and the agenda of works on SAATM is still on, and I think that soon we’ll have a meeting of the group, to see how to progress on the implementation of SAATM. Victoria Moores: Mm-hmm (affirmative). So in actual fact, the impact of COVID on connectivity, this huge network reset that we’re seeing in Africa could actually accelerate along SAATM and really highlight the importance of having free movement of air links between the African countries. Abderahmane Berthe: Right. It’s correct. We think that the COVID-19 is showing us that we really need to go toward the Single African Air Transport Market, to facilitate the movement within the continent. Victoria Moores: Mm-hmm (affirmative). And obviously, financial results, the financial sustainability of the industry itself is also important. African airlines were battling to make a profit before the COVID crisis. Do you have any forecast about the impact that COVID will have on the finances for African airlines, on their profitability? Abderahmane Berthe: Yes. We think that the financial impact of the COVID on airlines is very huge. And, as you said, before COVID African airlines, they are losing money, they were not profitable, so COVID-19 is aggravating this situation because they are lacking revenues. And as I said, the restart is still very, very slow. And load factors are very low, revenues per passenger are low also, and the cost of operations remain, so it means that they’ll lose more money. And we think that for that reason, the states and shareholders really need to support their airlines. We know that some states have put in place financial support to their airline, but we are asking them to go further in this support.
In April, we have made an assessment of indebtedness of our airlines for 2020, 2021, for the United Nations Economic Commission for Africa, and we have seen that for 16 members who responded, the indebtedness level was $3.2 billion. So we are working, also with African Union and the financial institutions, to put in place – as was recommended by the high level task force of African Union Commission – to put in place the fund of $25 billion to support the industry, not only airlines, but also airports, air navigation service providers. This is very important. The implementation is still a very slow, but we think that by January we can have this fund in place and it will help restart the business. And we also need to bring back confidence of passengers to travel, because of the current situation is very difficult in Africa. We don’t have an harmonization of health screening protocols across the continent, we still have some very high testing costs in some countries, also. This is not helpful to restart activities for our airlines. AFRAA is also advocating to reduce the PCR test cost within Africa, and also to harmonize the protocols and to have mutual recognitions of protocols across the continent, because the difficulty is that in Africa we have 54 countries. If each country has its own protocol, it would be very difficult for airlines and for passengers to travel.
Victoria Moores: So, it’s all about bringing together that jigsaw, all of those pieces, so increasing the number of routes from 73, bringing SAATM into place, getting the financing, and making everything more joined up and unified to protect the airline. It sounds as there is a lot going on for you at the moment there. Thank you very much for joining us this morning, I really appreciate that. And that concludes our interview for today, so thank you. Abderahmane Berthe: Thank you very much. Thank you. Victoria Moores: This is Victoria Moores, reporting for Air Transport World.
