Post on 19-Oct-2020
Aviation Capacity Building and
Cooperation in Africa
Raphael Kuuchi Vice President , Africa
© ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 2
OUR INDUSTRY TODAY
OUR INDUSTRY TODAY
World
1,379
Airlines
25,332
Aircraft in
service
3,864
Airports
Africa
245
Airlines
1,273
Aircraft in
service
371
Airports
Africa in a year…
• 119 million passengers
• 3% of the world passengers
• 6.9 million jobs
• $80 billion in GDP
• 1,584,000 flights
Record 2015 profits for the industry as a whole
IATA Economics www.iata.org/economics 6
Source: ICAO, IATA
-8
-6
-4
-2
0
2
4
6
8
-30
-20
-10
0
10
20
30
2000 2002 2004 2006 2008 2010 2012 2014
Global commercial airline profitability
Net post-tax profit
EBIT margin
% revenues US$ billion
IATA Economics www.iata.org/economics 7
Net Profits of $29.3 billion
on Revenues of $727 billion
IATA Economics www.iata.org/economics
8 Source: IATA, McKinsey, IHS Global Insight
Record 2015 profits still only $8.27 per passenger
Profits in Africa too, but challenges are ongoing
IATA Economics www.iata.org/economics 9
Source: IATA
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
2007 2008 2009 2010 2011 2012 2013 2014 2015f
Net profit (LHS) EBIT margin (RHS)
US$bn Net Profit & EBIT margin - Africa
% revenues
Africa’s 2015 profits are just $1.59 per passenger
IATA Economics www.iata.org/economics 10
Revenue Cost Net profit
$189.54 $187.95
$1.59
Africa (per passenger)
Source: IATA
AFRICA HAS THE
GREATEST POTENTIAL
Today ….
With over 1.2 billion people, air connectivity limited GDP is growing Middle class is increasing FDI into Africa is big and Intra-Africa trade is expanding
Confirmed by InterVista Study
$1.3 billion of incremental
GDP
155,000 additional jobs
Fare drop of 25-35%
Time savings - Efficiency
Additional 5m passengers
IATA Economics www.iata.org/economics 13
Only 2 countries have direct connections to more than half of the other countries in Africa
Source: SRS Analyser, IATA Economics
Additional 1,170 aircraft for Africa, 2015-2034
IATA Economics www.iata.org/economics 15
Source: Boeing
38,000 new aircraft, valued at $5.6 trillion
Critical Skills
Pilots – 25,000 per year or 498,000 over next 20 years
28,000 maintenance technicians annually or 556,000 over 20 year period
Africa
1,500 pilots
600 maintenance technicians
4,000 airport operators
annually
• Training – IOSA/ISAGO/Diploma courses
• Joint advocacy with AFCAC, AFRAA, etc
• Infrastructure development
• Charges, taxes and fees negotiations
• Sustainable aviation growth – the environment
• Smarter regulations
• Connectivity – VoA study
• Technology adoption
IATA in Capacity Building
Infrastructure development - both physical and financing will impact aviation growth
Going Forward …
• Uniformity in standards through harmonised
aviation regulations
• Share training resources and capacity – avoid
duplication
• Fund for aviation skills development
• Mechanism of compensation for brain-drain
Thank you