Africa’s national airlines: A blessing or a curse?

The African aviation industry has long been a topic of debate, with the question of whether national airlines in Africa are a blessing or a curse still lingering. The continent's aviation sector has seen a mix of success stories and challenges, with some carriers like Ethiopian Airlines thriving while others such as South African Airways (SAA) facing financial turmoil. To shed light on this issue, Derek Nseko, Managing Director of Ifly Aviation, recently joined CNBC Africa to discuss the importance of collaboration in the African aviation industry. Nseko began by questioning the necessity of national carriers in Africa, noting that while the aviation industry is crucial for the continent's economic activity, having flag carriers might not be essential. He pointed out that many countries in Europe and the United States have moved away from the idea of national carriers, opting instead for a private aviation industry. Nseko emphasized that operating national airlines can be extremely expensive, especially in a continent with poor infrastructure and connectivity. One of the key points raised during the conversation was the history of African airlines, with Nseko noting that many carriers have struggled to turn a profit. He highlighted Ethiopian Airlines as a success story, citing its long-term vision and emphasis on collaboration. In contrast, he mentioned the challenges faced by SAA, which has been plagued by issues such as corruption and poor corporate governance. Nseko stressed the importance of building sustainable airline businesses in Africa to avoid placing a heavy burden on the continent's finances. Ethiopian Airlines emerged as a standout example of success in the African aviation industry, with Nseko praising the carrier's equity partnerships with other airlines across the continent. He pointed out that collaboration is key for African airlines to thrive, emphasizing the need to work together to optimize routes and maximize efficiency. Nseko highlighted the importance of scale in the airline business, especially in Africa where operating costs are high and profit margins are small. The discussion also touched on the impact of COVID-19 on African airlines, with Nseko acknowledging the challenges posed by the pandemic. He emphasized the need for African carriers to streamline their operations and collaborate more effectively to navigate the current crisis. Nseko suggested that there may be too many airlines in Africa, with each country having its own national carrier, leading to excess capacity and competition. In conclusion, Nseko stressed the importance of collaboration among African airlines to ensure long-term success in the aviation sector. By working together and optimizing operations, carriers in Africa can overcome the challenges they face and build a sustainable industry. With examples like Ethiopian Airlines leading the way, there is hope for a brighter future for African aviation through partnership and cooperation.