Poor performance of African airlines due to unfriendly environment

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The Group Managing Director of Ethiopian Airlines, Ato Mesfin Tasew, has traced the unpleasant situation of many airlines on the African continent to what he called the lack of a conducive environment for the continent’s carriers to flourish.

Speaking at a panel of discussion moderated by the British-born Nigerian Nick Fadugba, organiser of the MRO African Aviation conference with the theme “Strengthening Africa’s MRO and Training Capacity for the Future,” going on in Addis Ababa, Ethiopia, the Ethiopian Airline Chief Executive Officer attributed the failure and the underperformance of the continent’s airlines to the high cost of operations, high taxes, difficulty in accessing Forex to buy spare parts, and the high price of jet fuel, among others, that have done incalculable damage to them.

Tasew faulted the way some African nations, in their desperation to protect their carriers, are frustrating the implementation of the Single African Air Transport Market (SAATM), which would have helped to liberalise air transport on the continent and ease travel connections within the region.

According to Tasew, “There is no conducive environment for airlines to flourish and grow. The cost of operation in Africa is very high: high taxes, a very low level of infrastructure, and a lack of access to forex. That is the reason Nigerian airlines complained to the government to help them access Forex to buy spare parts.

“Jet fuel prices have to be reasonable. The airline business needs strong leadership to control its costs. I don’t see that consciousness among African airline leadership. Cooperation would help African airlines grow.”

He defended the accusation levelled against his airline that the reason for partnering with other airlines in Africa is to dominate or have a comparative advantage over such carriers.

His words: “When we go to another country for a joint venture (JV), we are accused of dominating the country’s aviation. We have a JV with ASKY; have we gone to dominate them in Togo?

In a tacit response to Nigeria, he said, “My advice to you is that we are ready to help you become an independent airline and nurture you to grow. Don’t think Ethiopian Airlines is here to exploit you. We make sure they have the right number of skilled professionals. ASKY is independent, and it is willing to create a maintenance repair overhaul (MRO) in Lome, Togo.”.

He explained that the MRO, when ready, will serve the West and Central African markets that lack functional aircraft repair facilities, stressing that Ethiopian Airlines is helping to develop human capacity for the training of technicians.

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