With a population of over a billion people, Africa accounts for only one per cent of the world’s air traffic. The continent ought to lead in aviation transport.
Unfortunately, unfriendly policies, political instability, corruption and unstable economies have contributed to the slow growth of African carriers, leaving room for global players to reap big from the sector.
Recently, Air France launched a new Nairobi-Paris route which aims to tap into the sector. Financial Standard spoke to Air France Senior Vice President for Africa Frank Legré on the new move and its impact on the aviation sector, especially sub-Sahara Africa.
How would you describe air transport sector in Kenya?
The growth forecast in Africa is more than double that of the euro zone. Air transport in Africa supports this growth and generates an increasing appetite from newcomers. In Africa, the Air France KLM Group has been developing a long-term strategy based on close partnerships with key African airlines. As a result, we are the strategic partners of Kenya Airways (KQ) and Air Côte d’Ivoire. We have been developing a commercial cooperation with Kukula in South Africa and a technical cooperation with Congo Airways in the Democratic Republic of Congo.
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What about Africa?
Africa remains a priority continent for Air France and KLM, as demonstrated by the announcement of the opening of Paris Charles de Gaulle flights out of Nairobi with Air France. As from March 25, 2018, Air France customers will be able to fly to Paris from Nairobi thanks to three new weekly frequencies. Flights will be operated by the Boeing 787, equipped with 30 seats in the business class, 21 seats in premium economy class and 225 seats in Economy class. These flights will be operated on a code-share basis with partner KQ. Customers will benefit from 10 weekly non-stop frequencies between Paris and Nairobi, with three flights operated by Air France and seven flights operated by KQ. As a continuation of Nairobi, Air France customers will be able to fly to 23 regional destinations operated under a code-share with its partner.
What informed the move to create a new route for Air France?
We are constantly studying how to build up our network in Africa and increase our market shares as the continent is strategic for the group. In the case of Nairobi, we saw real opportunities for Air France in terms of market development; thanks to our strong ties with KQ.
African aviation is still expensive. What will air France do to offer cheaper and safer air transport on the continent?
Unfortunately, we have to acknowledge that operating costs in Africa are significantly higher than on other continents. This is true for example for the fuel and various taxes and charges that differ from one country to another. Same applies to security cost, due to the geopolitical context of some African stations as well as airport handling costs where airlines are very often confronted with a monopoly situation.
Air France constantly adapts its prices in line with supply and demand. Whenever we increase capacity, we offer attractive promotional fares and for sure, we will do so when we launch our advertising campaign to Paris in a few weeks.
African aviation industry faces challenges ranging from protectionism to safety woes. How can it grow the aviation sector?
It is up to the Africans to decide of the future of their skies. Comparing Africa to other continents, we can however see that local carriers are generally much smaller that their foreign counterparts. Working hand in hand with a foreign strategic partner and taking the advantage of the benefits of a worldwide alliance are key elements for continental carriers to address cost issues and market access. African governments can play a positive role in setting a business-friendly environment for the aviation sector, fair competition in airport services, efficient airport infrastructures and reasonable level of taxation.
What is the future like for the aviation sector in Africa?
We are optimistic as we foresee strong growth in Africa, especially in the domestic and intra-African markets. The main challenges for the African airline industry will be to reach an acceptable profitability to attract investors and fund their fleet renewal and, at the same time, to keep making steps towards better customer centricity and operational reliability.
