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 4 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

ACI World launches the Airport Excellence (APEX) in Security programme

Airports Council International (ACI) announced the launch of the Airport Excellence (APEX) in Security programme at the 27th Airports Council International (ACI) Africa/World Annual General Assembly.

Profitability is top of the bill

The African Airlines Association (AFRAA) will hold its 49th annual general assembly (AGA) in Kigali, Rwanda on November 12-14. Victoria Moores caught up with outgoing AFRAA secretary general, Dr Elijah Chingosho, to find out what's in

EgyptAir receive its eighth B737-800 NG

EgyptAir receives eight B737-800 on Saturday, as part of a deal for nine Boeing aircraft that the airline has purchased to join its fleet.

Airports Company South Africa wins big in Airport Service Quality Awards

Airports Company South Africa and four of its airports have been honoured at the 27th Airports Council International (ACI) Airport Service Quality (ASQ) Awards, held in Port Louis, Mauritius on Tuesday evening.

Air Arabia's Egyptian unit disposes of $3.3mn of equity

Air Arabia disposed of 590,000 shares to an unspecified party/parties a filing with the Egyptian Stock Exchange (ESX) on October 11, reports ch-aviation.

Ethiopian avails free Wi-Fi connection at Addis Ababa Bole International Airport

Ethiopian Airlines Group has availed free Wi-Fi connection at its main hub, Addis Ababa Bole International Airport as of October 2017.

AfBAC Expo SK2017
See us at
Aviation Africa BT18418AfBAC Expo BT2017Global Aerospace BT28218