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

IBAC welcomes ICAO decision on CORSIA baseline

The International Business Aviation Council (IBAC) has welcomed the decision by the Council of the International Civil Aviation Organization (ICAO) to remove 2020 emissions levels from the calculation of the baseline of the Carbon

Bolloré Logistics extends the airlift with Africa to ensure supply continuity

Bolloré Logistics is extending until 31 July 2020 its special weekly cargo freight service between Europe and West Africa, the WARA AIR SERVICE.

Quarantine measures threaten aviation restart in Africa

The International Air Transport Association (IATA) urged governments in Africa and the Middle East (AME) to implement alternatives to quarantine on arrival that would allow economies to re-start while avoiding the importation of

Airbus' H160 receives EASA approval

Airbus Helicopters’ multi-role twin engine H160 has been granted its type certificate by the European Union Aviation Safety Agency (EASA).

Ethiopian welcomes back business and leisure customers

Ethiopian Airlines has announced that it’s happy to welcome back business and leisure travellers with programmes aimed at safeguarding their health and safety.

African airlines post smallest cargo contraction in May

The International Air Transport Association (IATA) released data for global air freight markets in May showing a slight improvement in the air cargo market, although African airlines post smallest cargo contraction.

See us at