in Air Transport

Chingosho warns of the threats to the LCC market in Africa

Posted 4 June 2013 · Add Comment

As auditors question the viability of LCC Fastjet, African Airlines Association secretary general Elijah Chingosho has warned that the low-cost airline sector in Africa faces fundamental issues that threaten to block access to cheap flights for much of the continent's population.

 


Speaking at the IATA annual general meeting in Cape Town, Chingosho warned that taxes and fuel cost will damage the entire viability of the LCC model.
"Africa is a huge continent but also the poorest and the surface infrastructure is poor, so there is a need for low-cost carriers,” Chingosho said.  "The cost of doing business in Africa is a major problem because governments levy very high taxes on airlines and on fuel and there is still a limited penetration of credit cards and internet use in Africa."
There is also a lack of secondary airports which means the model that has worked in Europe is not able to be replicated in Africa. “Very few major cities have secondary airports, and where they do have they are very inconvenient and the charges are very similar to main airports," Chingosho said.
Exorbitant fuel charges are still at the heart of the problem Chingosho said. “For airlines in most regions of the world, the cost of fuel is typically around 30-35% of operating costs, but in Africa it is 45-55%. We are working to persuade governments and oil companies to reduce costs with some success, but more needs to be done,” he said

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Ninety years since Bastié became the first woman to set an aviation world record

Ninety years ago, on 28 July 1929, the French aviator Maryse Bastié made history when she became the first ever female pilot to set an aviation world record.

Go Comoros Titan is a write-off after fire

Fledgling Indian Ocean airline Go Comoros has suffered the loss it its Cessna 404 Titan following a crash as it departed from Prince Said Ibrahim International Airport on Moroni.

Gulfstream outfits 300th aircraft with Jet ConneX

Gulfstream Aerospace has outfitted an industry-leading 300th aircraft with Jet ConneX, the inflight broadband service.

SAA in search of new leadership team

Johannes Bhekumuzi Magwaza, chairman of South African Airlines,will be leaving the loss-making carrier at the end of the month.

Qatar Airways to launch direct flights to Gaborone

Qatar Airways is to launch a new service to Gaborone, Botswana, starting 27 October 2019. The capital and largest city of Botswana will be the airline’s first destination in the African country.

Jasmin Airways takes to the air

Private Tunisian airline, Jasmin Airways, having made its first flight last month to Sarajevo in Bosnia-Herzegovina is looking at strengthening its hand with its third aircraft being delivered this month.

TAA SK0104311219
See us at
MEBAA BT2006260919Dubai AS BT2006211119