Kenya Airways CEO on the impact of coups on Africa's aviation sector
Airlines in Africa are beginning to feel the weight of political instability as key flight paths are disrupted, forcing aircrafts to ply longer routes thus impacting on their operational costs. CNBC Africa spoke to Kenya Airways CEO, Allan Kilavuka on the deeper implications this has and the outlook for the sector.
Wed, 20 Sep 2023 15:13:54 GMT
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AI Generated Summary
- Political instability in Africa disrupts key flight paths, leading to longer routes and increased operational costs for airlines.
- Kenya Airways CEO, Allan Kilavuka, discusses the airline's ambitions to expand into new markets in Asia, Africa, and Europe through organic growth and partnerships.
- Global risks for the aviation sector include high demand for travel, constrained capacity, currency depreciation, economic instability, fuel price volatility, and political upheavals in Africa.
Political instability in Africa is starting to take a toll on the aviation sector, as key flight paths are disrupted, leading airlines to operate longer routes and impacting their operational costs. The CEO of Kenya Airways, Allan Kilavuka, shared insights on the deeper implications of this trend and the outlook for the industry. Kilavuka highlighted the airline's ambitions to expand into new markets, such as Asia (including Beijing and New Delhi), Africa (including Brazzaville and Maputo), and Europe (including Istanbul, Frankfurt, and Brussels). He underscored that Kenya Airways aims to grow both organically through its own resources and assets, as well as through partnerships with other airlines and partners. When asked about global risks ahead, Kilavuka acknowledged the high demand for travel as a positive challenge, yet noted the constrained capacity due to the unavailability of aircraft equipment. He also pointed out the risks associated with currency depreciation, economic instability, and fuel price volatility, which all contribute to the airline's operational challenges. Kilavuka specifically highlighted the recent political upheavals in Africa, such as the coup in Gabon, which not only impact traveler confidence but also disrupt flight paths, forcing airlines to take longer routes and significantly increasing travel costs. These unstable environments add complexity and costs to airline operations, posing a significant challenge for the industry in Africa.