Business News Monday, November 12, 2018
In Africa, air transportation supports 6.8 million jobs and $ 72.5 billion dollars of GDP per year. Statistics have shown that airline businesses in Africa are growing because more countries are buying to own their own national airlines.
At the end of 2017, Airbus Aeronautic Defense and Space Company received 261 orders from African countries to craft their own air with 28 new operators adding up to existing ones.
As the largest population in the world, experts say Air Transport in Africa will increase massively from 1.2 billion in 2016 to 1.68 billion by 2030.
Industry experts say Tourism in Africa will increase massively in the next 15 years from 52 million in 2012 to 134 million 2030 and is expected to increase by 10 in 40 years so the need for African countries to pay attention to the aviation industry.
The main impact of national airlines on GDP & employment in Africa
Already some African countries have benefited greatly from owning National Airlines.
In 2014 Zambia produced more than 14 million dollars in rose exports, Ethiopia, exported more than 154 million dollars in 2014 while Kenya rose to 326 million dollars in the same year.
These three countries provide more jobs than the mining industry which translates into $ 225 million in 2016 $ 820 million in 2017.
Being good and fast air transportation in these three countries makes a significant impact.
There are several other African countries including, Ethiopia, Zambia Togo, Seychelles, Mauritius and Cote d Ivoire which benefited greatly from their aviation industry.
National airline Togo
The arrival of tourists annually in Togo, for example, is said to have more than tripled from 50,000 in 1995 to 350,000 in 2015 since the formation of the national airline Togo.
Air Cote D & Ivoire
Just five years after the creation of national air Cote Cote & Ivoire, tourist arrivals also doubled from 800,000 in 1990 to 220 and million in 2017.
The direct impact of tourism on the Mauritius economy as a result of owning a national airline is 45,500 which represents 8.2% of total employment with a total of 135,000 jobs created in the same year.
The Seychelles story is no different.
With only a population of 95,235, 22.0 percent of Seychelles GDP is generated from the tourism industry.
This is because the country has invested in owning a national airline that has been translated into jobs that employ a total of 29 thousand in the hospitality industry.
Another example that shines in Africa is Namibian air.
Between 2015 and 2016, Air Namibia reported a $ 3.5 million profit from its operations and paid $ 21 million in salaries and salaries.
The airline also made 55 million dollars in indirect GDP contributions, as a result of supply chain activities related to the procurement of airlines.
The sad story of the Ghana national airline
After the fall of the national airline in 2010, Ghana has been without national operators.
Free boarding passes, mismanagement, and government interference with operations are among several other factors that are said to have caused the collapse of Ghana Airways which has until now lived.
After several delays in launching a new national airline, many said it was time for Ghana to see the airline sector as the key to its economic growth.
So far two deadlines for the relaunch of what is now called a home-based carrier.
First in 2015 and 2016. These promises have not been fulfilled
That does not last, the government currently says it is committed to reviving the national airline.
The Ghana Civil Aviation Authority (GCAA), has said a new national airline, which is expected to begin in 2019, will not tolerate a free ticket regime that is highly exploited by government officials that leads to the death of Ghana Airways and its successor, Ghana International Airlines.
With the recent policy agreement by Parliament, for the establishment of a new home-based airline by the Ministry of Aviation and Ghana Airport Companies, there are reports that a number of airlines including Ethiopian Airlines, Air Mauritius, and the current World African Airlines. is in talks with the government to establish a national airline.
Speaking to JoyBusiness in Toulouse, France, former Ethiopian airline chief executive Girma Wake said Ghana must take a signal from Ethiopia in its efforts to relaunch the parent airline.
He added that Ethiopian air has become a success story in Africa because of its management without government interference.
"For me, it doesn't matter who owns the airline. Ethopian airlines are 100 percent government but the government has allowed the airline to run on a commercial base. Complete an independent body to run airlines. If they do what many African airlines do, interfere all Ethiopian airlines will not be in this place.
African countries must be able to say, it's okay, here is our airline, this is our seed money, and we create airlines, let's put the right management to do their jobs. I am sure this can be done. Many European airlines up to 20 years ago were all owned by the government. They gradually came to this personal thing. Africa is not yet ready for a complete private airline. We need government involvement in our airlines. The government can encourage airlines to do what they want them to do, not by intervening but by means of development and that can be done. "
The vice president of the African international air transportation association Raphael Kuuchi, however, does not support government bets at national airlines.
"Ethiopia is a different case, they have a business model that is completely without government interference and runs very professionally. It's very difficult and tempting for the government to stay away from interfering in flights. What we want is to see that the government limits the extent of involvement in aviation.
We do not say that the government must get out of hand, after all, it is the government that must create an environment of policies and regulations so that we need the government but not for airline operations but aspects of industry policies and regulations. What I want to see Ghana do is, if the government wants to own shares in the national airline, it must be a minimum ownership and not a controlling stake and allow the private sector to drive it. "
With an estimated 385 million people in West Africa in 2017, there is great potential for the aviation sector.
The latest 2017-2036 Airbus Global Market Forecast, titled 'Growing Horizons', shows that more than half of global tourists travel across international borders each year on air transportation routines.
Ghana aviation industry
Over the past decade, the Ghana aviation sector has grown by around 8 percent every year.
In 2017, total international passengers through arrivals and departures are 1.8 million, mostly from Europe, North America and Asia.
The major international and regional airlines operating until now through Accra include Air France, Emirates, British Airways, Turkish Airlines, Ethiopian Delta, South African Airways, Air Namibia Africa World Airlines, among others.
Some African countries including Ethiopia, Zambia, Togo and Kenya are sweeping their aviation sectors that make a major contribution to their economies.
Experts say if Ghana really wants to see an increase in its economy, there is a need to give critical attention to the aviation sector.