In the recently concluded 9th Aviation Stakeholders Convention (ASC) – a two-days webinar hosted by the African Airlines Association (AFRAA) and the Ethiopian Airlines Group (ET), heavyweights of the aviation industry worldwide assembled to rub minds on the plethora of issues slowing down the recovery of the industry and to suggest coping mechanisms for weathering present storms as we learn to adapt to the new normal.
The event which had as theme, “Building Blocks for the Air Transport Industry Recovery” took place on the 18th and 19th of May, 2021, and was graced by a number of high profile personalities such as the Secretary General of AFRAA, Abderahmane Berthe; the Minister of Transport of the Republic of Ethiopia, H.E Mrs. Dagmawit Moges; the Group CEO of Ethiopian Airlines, Mr. Tewolde GebreMariam who was represented by the Group’s Chief Commercial Officer (CCO), Mr. Esayas WoldeMariam; IATA’s Regional Vice President Middle East and Africa, Mr. Kamil H-Al-Awadhi amongst others.
A presentation was made on the challenges faced by the industry in recent times, challenges which include: imposition of high taxes by governments; poor intra-African connectivity; inflated prices of jet fuel (whose price is 3% higher in Africa than in other regions); increasing number of foreign competitors; unfavourable business environment for investors and the COVID-19 pandemic, which according to sources has had the greatest impact of all.
A number of suggestions were also made – suggestions which if implemented by governments will ensure that the aviation industry stays sustainable in the long run. These include embracing the technology that enables the creation and use of electronic health credentials and e-visas; amping up vaccination campaigns, implementing vaccination passports and making use of the most cost-effective COVID-19 tests, because according to Mr. Berthe, “The potential for growth exists in Africa, but it is critical to make air travel affordable for Africans” if we want to fully restart aviation on the continent.
It was also suggested that other stakeholders (most especially airlines) should facilitate the transportation of vaccines; mobilize more resources towards the capacity-building of staff and be more trusting and collaborative with one another.
As Mr. WoldeMariam put it, “We need to have more confidence in each other and emerge from the colonial way of thinking that others (outside the continent) have better things to offer.”
To him, the aforementioned measures are better than shutting down African economies through the enforcement of lockdowns, as this is not an effective coping mechanism, simply because Africa does not possess the “economic muscle” as other nations in the northern hemisphere do, to survive the ensuing economic and social consequences.
According to AFRAA’s market analysis, though 2021 airline capacity and traffic are projected to reach 60% and 45% respectively of those of 2019; the aviation industry in Africa is expected to lose $8.35 billion USD this year.
This, according to Mr. WoldeMariam, calls for resilience in the face of an ever dynamic industry such as aviation, which has seen various types of challenges prior to COVID-19 such as the emergence of low cost carriers and the Twin Tower bombings of 9/11 (which ushered in an arrey of security issues), just to name a few – events which “have made us wiser”, enabling ET to weather the COVID-19 storm, he acknowledged.
He went further to advise other airlines: “It is important to be ready for change and to be agile.” He concluded by calling on the African Union (AU) to take advantage of the fact that “everything is going to go biometric” and swiftly implement the AU G3 vision.
ASC is a platform for discussing the latest developments in aviation, understanding business trends, networking and forging new partnerships between aviation professionals. This year, the event brought together over 400 of such heavyweights, consisting mainly of operators and service providers from the world over.
