in Air Transport

Chingosho warns of the threats to the LCC market in Africa

Posted 4 June 2013 · 1 Comment

As auditors question the viability of LCC Fastjet, African Airlines Association secretary general Elijah Chingosho has warned that the low-cost airline sector in Africa faces fundamental issues that threaten to block access to cheap flights for much of the continent's population.

 


Speaking at the IATA annual general meeting in Cape Town, Chingosho warned that taxes and fuel cost will damage the entire viability of the LCC model.
"Africa is a huge continent but also the poorest and the surface infrastructure is poor, so there is a need for low-cost carriers,” Chingosho said.  "The cost of doing business in Africa is a major problem because governments levy very high taxes on airlines and on fuel and there is still a limited penetration of credit cards and internet use in Africa."
There is also a lack of secondary airports which means the model that has worked in Europe is not able to be replicated in Africa. “Very few major cities have secondary airports, and where they do have they are very inconvenient and the charges are very similar to main airports," Chingosho said.
Exorbitant fuel charges are still at the heart of the problem Chingosho said. “For airlines in most regions of the world, the cost of fuel is typically around 30-35% of operating costs, but in Africa it is 45-55%. We are working to persuade governments and oil companies to reduce costs with some success, but more needs to be done,” he said

 

1 Comment for Chingosho warns of the threats to the LCC market in Africa

Kibuti

posted 3 years ago

Limited networks not to mention arising from limited open skies agreements and Legacy carrier protectionist hogging of traffic rights.

* required field

Post a comment

Other Stories
Advertisement
Latest News

UAE Space Agency and Algerian Space Agency strengthen ties

The UAE Space Agency has signed a Memorandum of Understanding with its Algerian counterpart the Algerian Space Agency.

Boeing reports first-quarter results

The Boeing Company reported higher first-quarter earnings and operating cash flow compared to the previous year, driven by solid execution on production programmes and services.

Botswana terminal takes next step towards 2020 vision

The Government of Botswana says the construction of a temporary terminal building at Maun International Airport will be completed in May this year, although the rest of the infrastructure expansion project is due to be completed in

A new way to Scout out web booking

An innovative new charter sales platform, Jet Scout, has been introduced to the African and Middle East market. Vincent Chappard finds out why it is receiving a positive reaction.

Travelport and Nesma Airlines announce new long-term agreement

Travelport and Nesma Airlines have announced the signing of a new, multi-year, full content agreement.

SAA and Hawaiian Airlines launch new interline partnership

South African Airways (SAA) and Hawaiian Airlines have established a new interline agreement, that provides new and convenient flight options for both SAA and Hawaiian customers travelling between the Hawaiian Islands and Southern

EBACE17 SK0103240517
See us at
EBACE17 BT0103240517GroundHandling BT0303280917Aviation Festival BT25114617