By Chinelo Obogo
During his tenure as Minister of Aviation and Aerospace Development, the immediate past Minister, Hadi Sirika, consistently advocated for the establishment of a national carrier for Nigeria.
He emphasised that the country’s existing domestic airlines, while operating within the sector, are simply not equipped with the capacity or scale required for long-term sustainability and growth. According to Sirika, these airlines, though vital to the nation’s air transport network, are too small and fragmented to effectively compete on a global scale or fulfill the essential functions of a national carrier.
Sirika argued that the inability of many Nigerian airlines to thrive or expand over the years stemmed largely from this inherent lack of capacity. He pointed to the repeated failures and challenges faced by local carriers, stressing that without a robust, state-backed airline, Nigeria would continue to lag behind in reaping the full benefits of a strong aviation sector. A national carrier, he insisted, would not only enhance the country’s global aviation presence but also drive economic growth, improve connectivity, and support strategic national interests, including tourism, trade, and international diplomacy.
However, this assertion has been promptly refuted by the chairman of Air Peace, Allen Onyema, who insisted that Nigerian carriers have the capacity to carry out any role required of them.
Sirika’s concerns about African airlines’ survival, recently submerged by events, resurfaced within the week, during the February edition of the African Airlines Association (AFRAA) SkyConnect Leadership Dialogue.
Allan Kilavuka, Group Managing Director and Chief Executive Officer of Kenya Airways and Chairman of the AFRAA Executive Committee, along with Abderahmane Berthe, Secretary General of AFRAA, addressed the fragmented state of Africa’s aviation industry.
In the monitored dialogue, Kilavuka and Berthe, discussed the many challenges and opportunities within Africa’s aviation sector. They said the industry is highly fragmented, with limited cooperation among African airlines, and that this fragmentation has prevented the consolidation necessary for creating stronger, more competitive carriers. He said this must be addressed, hence the airlines are destined for failure.
Airline performance and profitability
During the dialogue, Kilavuka stressed the need for more viable and formidable airlines in Africa, noting that many existing carriers are subscale and unsustainable in the long run.
He proposed two solutions: injecting finances into the carriers, which would increase capacity but also operational costs, or fostering collaboration among African carriers to increase scale without necessarily increasing costs. He highlighted the importance of working together to enhance the scale of operations collaboratively. Kilavuka pointed out that while Europe continues to consolidate its airlines, Africa is moving in the opposite direction, despite the continent’s need for consolidation.
He said, “The problem is that we need viable, formidable airlines in Africa. In their current state, a majority of African airlines cannot survive the long haul. Many of what we have are completely subscale. They cannot succeed. They are not sustainable. They might survive for a few years, but they will eventually die because, in aviation, scale is important. It reduces your cost of operation, increases your capacity to have resources, and gives you better bargaining power.
“So, what is the solution? We have two options. You can inject finances, which would mean that all of a sudden, you’ll have a lot of capacity, and you’ll need a lot of expertise. In fact, you’ll increase the cost of operation. That is one option. The other is to have collaboration and better working relationships among African carriers. This way, you can increase scale without necessarily increasing costs, and that is why I am very passionate about how we can work together to increase our scale of operation collaboratively.
“In Central and West Africa, there was a fantastic airline that worked collaboratively among states, but of course, it was sabotaged by politics. However, that same concept of coming together collaboratively has been implemented in Europe, North America, and other places very effectively. In Europe, every single day, you see them consolidating even more, but we are going in the opposite direction, even though we all know that if there is any continent that needs to consolidate, it is Africa.”
Berthe agreed with Kilavuka on the lack of cooperation among African airlines, saying that it is due to fear. However, he believes that cooperation and competition can coexist. He said AFRAA promotes cooperation among African airlines through initiatives like the route network and cargo coordination committee and called for greater cooperation and consolidation of airlines to improve intra-African connectivity.
“We are seeing a very low level of cooperation between airlines because of fear. But for me, you can cooperate and still compete. In AFRAA, we are trying to promote cooperation among African airlines. We have our route network and cargo coordination committee. I have been an airline CEO before I became the Secretary General of AFRAA, and I remember that my airline signed a lot of interlining and code-share agreements, including with Kenya Airways and Ethiopian Airlines. So, it is really possible. We need to cooperate more and even move towards consolidation of airlines. When you consolidate, you can build a network of airlines for the sake of intra-African connectivity,” he said.
Navigating industry complexities
When asked how African airlines, though fragmented, can navigate the complexities of the industry going into the future so that the industry does not keep creating and losing them, and how to increase efficiency in the airline so they can operate efficiently both internally and externally, Kilavuka outlined the importance of efficient airline operations, including keeping to schedules, reducing costs, continuous staff training, and enhancing safety standards. He said that learning from each other is crucial in solving problems related to incidents and accidents, as African aviation is not ranked well in terms of safety.
“An efficient airline is one that operates on schedule. We also have to make sure that we are containing costs and that they are sustained at all levels. You must always train your staff to improve their skills and enhance the airline’s safety. In terms of incidents and accidents, African aviation is not ranked well, and we have got to solve that problem. The best and easiest way to solve the problem is to learn from each other,” Kilavuka said.
While speaking on the issue, Berthe stressed the need for airlines to have a strong business case and improved customer experience, saying that customer service in African airlines often falls short. He expressed optimism that there would be lower fuel prices this year, which would benefit airlines given that fuel is a very important component of operational costs. However, he said that long-term sustainability requires more than just lower fuel prices; it requires strategic policy support and investment.
“I will approach it from this perspective: it is very important for an airline to have a strong business case, and customer experience is also very crucial because, at the end of the day, we are selling a product to the customer. Sometimes, in Africa, customer service is not at the top level, so we need to also internally think about it. We also expect fuel prices to be lower this year. As you know, fuel is a big component of an airline’s operational cost, so having fuel at a lower price would be good for business,” he said.
Policy framework
Kilavuka argued that one of the major obstacles to growth is how governments have placed aviation within the GDP spectrum. He stressed the need for African governments to place aviation at the center of economic policies because thriving aviation sectors in other regions are directly linked to strong economic growth and supportive infrastructure investments, as those countries have placed aviation at the center of their economic policies. He called for Africa to urgently make aviation a priority in economic development and to implement policies that support this goal. Currently, policies do not support the necessary actions for growth.
“One of the things that I believe is plaguing our growth is where we have placed aviation in the GDP spectrum. If you look at where aviation is thriving around the world or pick specific countries where general aviation is doing extremely well, you would find that there is a direct correlation between economic growth and a thriving aviation sector. Why is this? It is because they have placed aviation right at the center of their economic policies. They have invested enough in the supporting infrastructure that sustains airlines and other service providers. One of the problems we are having in Africa is that we have not made that decision yet. We have to decide that aviation is important enough to be at the center of economic development. For us to grow faster, we need to place aviation in its rightful place. So, policy needs to support actions. Right now, policies do not support action,” he said.