AASA CEO Aaron Munetsi on why its so expensive to fly in Africa

Last month, the South African Competition Commission released a report that shed light on the challenges faced by African airlines, revealing that it costs significantly more for them to operate within the continent compared to their global counterparts. To delve deeper into this issue, Aaron Munetsi, the CEO of the Airlines Association of Southern Africa (AASA), joined CNBC Africa for an insightful discussion. Munetsi highlighted the various factors contributing to the high costs faced by African airlines, ultimately leading to expensive air travel for customers. He pointed out that financing aircraft and equipment poses a major challenge for African airlines due to weak local currencies, which need to be converted into stronger, convertible currencies. Additionally, the importation of JTA-1 fuel, lack of production within the continent, further adds to the operational costs. Operating into specific airports and navigating the African skies also incur additional expenses, driving up the overall cost of operations. The culmination of these factors results in both airlines and customers bearing the burden of expensive air travel. Munetsi emphasized the need for increased competitiveness within the African airline industry to address these challenges. He referenced the Yama Super Declaration of 1988, which aimed to open up the skies for African airlines, as a foundational step towards fostering competition. In 2018, African countries launched the Single Africa Air Transport Market, allowing unrestricted access for African airlines to operate within the continent. Munetsi explained that this move would lead to heightened competition among airlines, ultimately driving down prices for consumers. Furthermore, by opening up the skies and allowing airlines to freely choose their destinations, operational costs are expected to decrease, benefiting both airlines and customers. The CEO highlighted the potential benefits of the Single Africa Air Transport Market for South Africa, noting that the country was among the first to sign up in 2018. With 35 African countries now part of the agreement, South African airlines have gained a competitive advantage, enabling them to operate directly to these nations. This newfound access opens doors for increased tourism, trade, and connectivity between South Africa and its African counterparts. Overall, the activation of the Single Africa Air Transport Market is set to revolutionize air travel in Africa, paving the way for greater affordability and accessibility for both airlines and passengers.