Air Transport In major Airlines In Africa: Challenges And Prospects
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Date
2014-06
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Addis Ababa University
Abstract
The significance of air transport in promoting growth and development in developing countries is very high. The African air transport industry in general and the African airline industry in particular have faced challenges of a multitude nature. As such this research is conducted to show the challenges and prospects that are faced by major African airlines. One challenge that did not get adequate attention by studies reviewed is the competition African airlines face from foreign airlines. To this effect, the market share of African and Foreign airlines for the period 2006 to 2012 is analyzed in terms of seat capacity and flights per week in their intercontinental and intra-continental operations. Also comments from LinkedIn African aviation discussion forums are used to identify and list out the major challenges of the African air transport. In the intra-Africa operations the African airlines are observed to dominate the market with an average market share of 95%. In the intercontinental operations African airlines have lost an average of 12% seat capacity for Middle East and European carriers. Furthermore interviews with African airlines executives show the fact that the competition from the foreign carriers especially that of the Middle East is at a critical stage. However, the prospect of the African airlines is not gloomy. Given the growing economy and middle class in Africa, Boeing forecasts a growth of 5.7% for African airline traffic. But this is only possible if the African airlines are able to work together and compete with the giant carriers. To this end the African states and airline Association should work together in areas where they can pool resources and improve efficiency
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Keywords
African Airlines, air transport, challenges and prospects in Aviation