Business News of Monday, 12 November 2018
In Africa, the air transport supports 6.8 million jobs and $ 72.5 billion dollars of the continents of GDP annually. Statistics have indicated that the Airline Business in Africa is growing as more countries are purchasing to have their own national air carriers.
As at the end of 2017, the European Aeronautic Defense and Space Company received Airbus 261 orders from African countries for their own water crafts with 28 new operators adding up to the existing.
As the world 's largest in terms of population, experts say Air Transport in Africa will massively increase from 1.2 billion in 2016 to 1.68 billion by 2030.
Industry experts say Tourism in Africa will be massively increased in the next 15 years from 52 million in 2012 to 134 million in 10 years, years later, the need for African attention to the aviation industry.
National airline's core impacts on GDP & jobs in Africa
Already some African countries making huge gains from having National Airlines.
In 2014 Zambia made over 14 million dollars from exportation, Ethiopia, exported over 154 million dollars in 2014 while Kenya went on to tune 326 million dollars the same year.
These three countries provided more jobs than the mining industry translating into $ 225m in 2016 $ 820m in 2017.
Being a perishable good, vibrant water transport in these three countries made a significant impact.
There are several other African countries including, Ethiopia, Zambia Togo, Seychelles, Mauritius and Cote d Ivoire benefiting greatly from their aviation industries.
Togo national airline
Tourist arrival per year in Togo, for instances, it has more than tripled from 50,000 in 1995 to 350,000 in 2015 since the creation of Togo's national airline.
Air Cote D'Ivoire
Just five years after the creation of Cote d'Ivoire national water, the tourist arrival also doubled from 800,000 in 1990 to 220, and million in 2017.
The direct impact of tourism on Mauritius' economy as a result of having a national airline 45,500 representing 8.2% of total employment with a total of 135,000 jobs created the same year.
The story of Seychelles is not different.
With just a population of 95,235, 22.0 per cent of Seychelles's GDP is generated from the tourism industry.
This is because the country has been having a national airline which has been translated into total employment of the 29 thousand in the hospitality industries.
Another shining example in Africa is air Namibia.
Between 2015 and 2016 Air Namibia reported a $ 3.5 million in profit from its operations and paid $ 21 million in wages and salaries.
The airline also made 55 million dollars indirect GDP contribution, as a result of supply chain activities linked to the airline's procurements.
The sad story of Ghana’s national airline
After the collapse of the national airline in 2010, Ghana has been without a national carrier.
Free boarding passes, mismanagement and government interference with operations were among the other factors led to the collapse of the vibrant vibrant Ghana Airways.
After several postponements of the launch of a new national airline, many say it's about time Ghana sees the aviation sector as its key to economic growth.
So far two deadlines for the re-launch of what is now called the home-based carrier.
First in 2015 and 2016. These promises are yet to be fulfilled
That is not withstanding, the current government says it is committed to reviving the national airline.
The Ghana Civil Aviation Authority (GCAA), said to be a new national airline, 2019, will not tolerate a free ticket regime which was heavily exploited by governments leading to the demise of Ghana Airways and its successors, the Ghana International Airlines.
With a recent Parliamentary approval policy, the Ghana Airports Company and Ethiopian Airlines, Air Mauritius, and African World Airline are currently are in talks with government for the establishment of the national airline.
Speaking to JoyBusiness in Toulouse, France former chief executive officer of the Ethiopian airline, Girma Wake said Ghana would have to take a cue from Ethiopia to re-launch the home base carrier.
He added that Ethopian water has been a success story in Africa because its management was devoid of government interference.
‘" For me, it doesn't matter who owns an airline. The Ethiopian airline is 100 per cent government but the government has allowed the airline to run on commercial bases. Complete independent body to run the airline. If they were to do what many African carriers do, the interfering in Ethiopian airline will not be where it is today.
It's good, here is ok, here is our airline, here is our seed money, and we created the airline, let's put proper management in place to do their job. I am sure this can be done. Many European carriers until 20 years ago were all government owned. They gradually came to this private thing. Africa is not yet ready for a complete private airline. We need government involvement in our airlines. The government can push an airline to do what they want to do, not the way of interference and how it can be done. "
Raphael Kuuchi, the vice president of the Africa international air transport association, is however not in favor of government stakes in national airlines.
"Ethiopian is a different case, they have a business model that is completely devoid of government interference and run extremely professionally. It is very difficult and tempting to stay away from interfering in aviation. What we want to see is that the government limits the extent of involvement in aviation.
We will not be hands off, after all, the government is one of the ways to create policy environment and regulations, but not for the operations but the policies and regulatory aspects of the industry. What I want to see Ghana is that, if the government wants to have a stake in the national carrier, it should be the minimum stake and not controlling the stake and allow the private sector to drive it. "
With an estimated 385 million people in West Africa as of 2017, there are huge potentials for the aviation sector.
The latest Airbus Global Market Forecast 2017-2036, titled 'Growing Horizons', shows that over half of global tourists travel every year on air transport routines.
Ghana's aviation industry
Over the past decade, Ghana's aviation sector has grown by about 8 per cent annually.
In 2017, total international arrivals and departures were 1.8 million mostly from Europe, North America and Asia.
Key international and regional airlines include: Air France, Emirates, British Airways, Turkish Airlines, Brussels Delta, Ethiopian, South African Airways, Air Namibia African World Airlines among others.
Several Africa countries including Ethiopia, Zambia, Togo and Kenya are raking in on their aviation sectors making huge contributions to their economies.
My expert if Ghana really wants to see a surge in its economy, there is a critical attention to the aviation sector.