Luanda: Managers have called for changes in the management of African airlines and the need to change their traditional management model and diversify their business in order to support high operating costs and increase the efficiency of air transport on the continent. Leaders of African airlines defended this position during a discussion on the theme “Radical Reinvention for African Airlines amid Ongoing Challenges” at the 57th Annual General Meeting and Summit of the African Airlines Association (AFRAA), which ends Tuesday in Luanda.
According to Angola Press News Agency, taxes imposed by African governments on carriers represent up to 50% of the value of a passenger ticket, which increases operating costs and “suffocates” finances, compromising the sustainability and continuity of the company. The managers stressed that, in the global context, discussions focus on the growth and profitability of the continent’s carriers and the turbulence caused by fuel price shocks and high operating costs.
They also fa
ce challenges related to unequal competitive conditions, supply chain issues, and infrastructure problems. This leads to the need to reinvent strategies and transform crises into competitive advantages through innovation. Allan Killavuka, Chairman of the Executive Board of Kenya Airways, said that African companies need to reduce operating costs by optimizing their fleets, defining their routes more clearly, and investing in human resource training.
Alongside these strategies, the Kenya Airways executive director defines two axes: organizational growth and support from partners. Ethiopian Airlines’ executive director of commercial affairs, Lemma Gudeta, spoke of the need to rationalize aircraft based on route planning and adapt them according to distance.
Nelson Oliveira, the CEO of TAAG Angolan Airlines, said the focus should be on the cargo segment and restructuring domestic and regional routes. Terry Cloutet, Airbus’ Director of Business and Growth for Africa, said that African aviation is developing and
that the continent is currently pressuring the manufacturer to deliver more than 800 aircraft.
The experts advocated for greater government investment in infrastructure, training, maintenance centers, and a technology industry capable of responding to Africa’s challenges.