Africa Wings

AFRICAN AIRLINES ASSOCIATIONA F R A A ’ S P A N A F R I C A N J O U R N A L O N A I R T R A N S P O R T

N o . 1 5 N o v 2 0 1 1 - J a n 2 0 1 2

E-Commerce Fraud –

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ASSOCIATION DES COMPAGNIES AERIENNES AFRICAINES

The African Civil Aviation PolicyThe African Civil The African Civil The African Civil Aviation PolicyThe African Civil Aviation Policy

Africa’s Commercial Aviation MarketAfrica’s Commercial Aviation Market

November 2011-January 2012 1

especially those operating in States where there is inadequate safety

oversight capacity, continue to tarnish the continent’s safety image. It is

commendable though that under the auspices of the International Civil

Aviation Organisation (ICAO), African Indian Ocean (AFI) Plan and African

Civil aviation Commission (AFCAC), a team of qualified and experienced

safety inspectors drawn from African States has been mobilized to render

assistance to capacity-challenged States in areas of certification, capacity

building and oversight. We commend this move and invite all multilateral

partners and stakeholders (especially the EU) to support such practical

steps towards improving safety instead of regularly publishing a list of

states and airlines with perceived safety deficiencies. Such a non-impartial

stance has no place in the global aviation scene where the ICAO should

be the only body to regulate international safety and security.

In addition to tackling the policy and safety concerns from multiple fronts,

African carriers will require a modernized fleet in order to compete on

routes historically dominated by foreign carriers. Today, Africa represents

only about 4% of the Global Western Built Passenger Jet Fleet and only

about 2.2% of future orders, despite being the world’s second largest and

second most populous continent, after Asia. With over one billion people

in 54 countries, it accounts for about 15% of the world’s population, yet only

around 10% of this population has ever travelled by air. Africa therefore

represents a huge air transport potential in the 21st century.

Modernizing the fleet and investing in the development of human

resources will improve the competitiveness of the industry and enable

airlines to tap into this vast untapped potential. There are still too many

state-owned airlines on the continent and it is about time governments

took a cue from the successes of the private and privatized airlines and let

go their hold on national airlines. States should focus on creating the

enabling environment through policies, regulations and providing the

necessary safety and security oversights.

We believe that the stage is set for Africa to embark upon significant

growth and modernization that will transform its aviation industry as well

as help fuel positive economic progress across the continent. The airline

industry has a major transformational role to play especially in the area of

partnerships and commercial cooperation. In a globally inter-dependent

business environment, African airlines must forge mutually beneficial

commercial, technical and operational relationships among themselves

and between them and non-African carriers. It is only by pooling their

limited resources that African airlines can realize the synergy inherent in an

industry as complex as air transport.

foreword

IATA recently published a more positive outlook for 2011: an improvement

from the initial projected profit of US$4.9 billion on revenues of US$632

billion to the industry profit expectations of US$6.9 billion on revenues

of US$594 billion is the new forecast. This is against a background of

various challenges, chief among them the high oil prices forecast to

average US$110.00 per barrel for Brent crude.

African airlines are now projected to break-even, from a previous forecast

loss of US$100 million. This is in spite of the growing African economies

at rates of 5.5% and 5.9% in 2011 and 2012 respectively, according to the

World Bank (higher than the global average of 2.5% for 2011). The meagre

profit forecast for Africa is partly due to the Arab uprising in the Middle

East and North Africa which has negatively affected both business and

tourist travel. This will continue to depress traffic volumes and overall

performance of African carriers beyond 2011.

Directly and indirectly, air transport creates over 470,000 jobs across

various sectors on the continent and generates billions of dollars in

revenue. Therefore such a critical economic sector needs government

support, not aid, to ensure that it is not put at a competitive disadvantage

in the face of stiff competition. Progressive policies are key to drive strong

market growth as global economic recovery stimulates passenger and

freight demand for African export commodities and imports of hi-tech

equipment, machinery, pharmaceutical and manufactured goods.

The renewed enthusiasm and momentum in the implementation of the

Yamoussoukro Decision (YD), especially with the appointment of the

African Civil Aviation Commission (AFCAC) as the Executing Agency, and

for the first time the ongoing development of a comprehensive aviation

policy for Africa, are steps in the right direction. In addition, policies that

address the over-taxation of the industry must be formulated. According

to data available from International Air Transport Association (IATA), it

costs 18.5 US cents per Revenue Passenger Kilometre (RPK) in Africa

compared to 15 cents in Europe and 11 cents in North America. High taxes,

charges and fees are an impediment to the realization of the industry’s full

potential and the growth of low cost carriers. In a vast continent with poorly

developed road, rail and water transportation systems, air transport if

appropriately regulated and supported could fast-track the continent’s

integration as well as facilitate cost-effective movement of people and

goods. Speed in policy/regulatory changes is of the essence to enable

the industry expand quickly to take advantage of the unfolding

opportunities. Governments and regulatory authorities need to understand

this drive and expeditiously eliminate restrictions to market access and

cross-border investments.

As we make strides in the policy front, the continent’s relatively poor

safety image has to be purged. There is no doubt that the well-established

regional and intercontinental operators boast of safety levels comparable

to the best anywhere in the world. However, some domestic operators,

Creating a Conducive Environment for Aviation Development

Dr. Elijah Chingosho

AFRAA Secretary General

Africa Wings2

contents

AFRICAN AIRLINES ASSOCIATIONA F R A A ’ S P A N A F R I C A N J O U R N A L O N A I R T R A N S P O R T

N o . 1 5 N o v 2 0 1 1 - J a n 2 0 1 2

E-Commerce Fraud –

Is Your Airline Online Revenue Protected?E-Commerce Is Your

The African Civil Aviation PolicyThe African Civil The African Civil Aviation PolicyThe African Civil Aviation Policy

Africa’s Commercial Aviation MarketAfrica’s Commercial Aviation Market

6

8

194

4 The African Civil Aviation Policy (AFCAP) For a policy whose need clearly exists, here is a thumbs-up.

6 Africaís Commercial Aviation Market Indeed poised for profitable expansion and modernization.

10 E-Commerce Fraud Is Your Airline Online Revenue Protected?

12 Interview with Dr. 0.B. Aliu African aviation industry, still beckons a brighter ‘morrow.

16 AFrAA Diary Stay abreast of AFRAA’s latest.

19 Airlines Prepare for Simplified Interline Settlement (SIS) Project as the Project Goes Live Acclimatizing to change, airlines get the ball rolling.

22 Aircraft Analysis – ATr 42/72 600 Series With Air Royal Maroc being the auspicious launch customer

24 News Briefs What’s new with African Airlines?

28 List of AFrAA Secretary Generals The African Airlines Association is now 43 years old. In the last four decades and

over, AFRAA has grown in importance and relevance to the industry, thanks to their

visionary leadership. The roll of Secretary Generals that have managed.

Africa Wings is published quarterly for AFRAA by

Camerapix Magazines Limited.

Correspondence on editorial and advertising

matters may be sent to either of these addresses:

Editorial and Advertising Offices:Camerapix Magazines Ltd.

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E-mail: [email protected]

Printed in Nairobi, Kenya.

©2012 CAMErAPIX MAGAZINES LTD

All rights reserved. No part of this magazine may be reproduced

by any means without permission

in writing from the publisher.

Publishers:

Editorial Director:

Managing Editor:

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French Translation:

Production /Advertising:

Camerapix Publishers International Limited

Rukhsana Haq

Raphael Kuuchi

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Azra Chaudhry (UK)Rose Judha (Kenya)

22


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Africa Wings4

The African Civil Aviation Policy (AFCAP)By Mr. Tewodros Tamrat, Director, Government, Corporate and Industry Affairs, AFRAA

1. BackgroundThe African Union (AU) in collaboration with

the African Civil Aviation Commission

(AFCAC) initiated the work of preparing a

comprehensive African Civil Aviation Policy

document.

The policy was initiated by AU/AFCAC in line

with the decision of the first conference of

African Ministers of Transport held in Algiers.

The first draft of the document was sent to

stakeholders including AFRAA for review,

comments and inputs. AFRAA is also one of

the members of the experts group

established by the AU to assist in the

preparation of the Policy Document.

2. The need for a Common African Civil Aviation PolicyThe Policy document in Article 1.8 set out the

justification for a continental aviation policy.

The Policy is intended to address the main

impediments to implementation of

numerous initiatives in Africa relating to Civil

Aviation, one such impediment is the lack

of political commitment and a “Coherent

Policy Framework”.

The Policy document will therefore “provide

a framework and the platform for the

formulation, collaboration and integration of

national and multi-national initiatives/

programs in various aspects of Civil

Aviation”

It is also intended to serve as a guide for the

developments of national and regional

policies thereby fostering harmonisation.

The Policy is also expected to result in a

shift in focus from national to common

regional and global market and competition.

3. Content of the PolicyThe document consists of 3 parts and 14

Chapters covering all the major areas of Civil

Aviation. Air Transport is dealt under Part II

Chapter 5 “Technical Provisions”. The issues

that the policy addresses are enumerated

under 1.8.2 of the Policy Document among

which are; The vision and strategic objectives

(1.8.2) (a) Common approach to external

relations and foreign operations (1.8.2 (e).

The policy document should address,

inter alia, the following issues: -

a) The vision and strategic objectives for

African civil aviation

b) Specific targets to bring Africa at par with

the rest of the world, particularly in safety,

air traffic and economic statistics

c) Common objectives, policy statements

and strategies for the management of the

various aspects of civil aviation: - safety,

security, airspace management, air

transport, etc.


d) Linkage with other socio-economic

sectors, e.g. tourism, trade, to enhance

demand for air transport

e) Common approach to external relations

and foreign operations

f) Procedure for periodic review and

monitoring of implementation of the

policies and adoption of regulations and

Action plans as may be required.

g) Delegation of authority from Heads of

Government to conference of Ministers, AU

commission, AFCAC as appropriate, etc

4. Air TransportChapter 5 deals with Air Transport matters.

This chapter should be of significant interest

to African airlines as most of its content

impacts directly on the industry. The main

components of this chapter are;

• Liberalization

• Air Service Agreements

• Air Transport Licensing

• Competition and Consumer Protection

• Aviation Tariffs and Charges

The rest of the chapters deal with Economic

Regulations of Airports and Air Navigation

Services (5.8), Facilitation, Pandemics,

Statistics etc.

Other areas that would be of specific interest

to airlines are;

• Airline/Operators Security Management

(9.3).

• Environment Protection (10.1)

• Human Resource Development (Chapter 11)

and Financing of Infrastructure (Chapter 12),

particularly 12.2 on funding of Civil Aviation

Authorities.

AFRAA’s views on the AFCAP

The draft policy was circulated to all members

for review and comments. Subsequently the

matter was also presented to the AFRAA

Aeropolitical Task Force which met on 2nd

September, 2011 in Nairobi, Kenya.

The Task Force meeting commended the

AU for its initiative and the excellent work

done by the AU/AFCAC experts group.

Discussing the draft, members of the Task

Force also expressed overall appreciation of

the draft as covering all the major areas of

concern to the airline industry. However,

they pointed out the following areas for

reconsideration;

a) The main challenge to the policy is

implementation. There must be a strong

mechanism to ensure compliance by

States of the policy. The draft however,

does not contain such mechanism.

b) The draft does not address the anti-

competitive behavior of third country

airlines, which is threating the African

airline industry. The absence of

competition regulation at regional and

national level has created a situation

where some foreign carriers abuse their

dominant position or exercise

anticompetitive practices such as

capacity dumping and predatory pricing.

The policy should provide guidelines on

preventing such behaviours. The

objective of member States is to create a

level playing field for all of aviation

players to ensure a strong and

sustainable African aviation industry that

is competitive in a global and liberalized

environment. In this regard States should

ensure that the competition rules they

put in place adequately cover third

countries and third country companies

whose activities may have the effect of

distorting competition.

c) The proposal to fund the regulatory

activities of the State by additional

passenger charges should be

reconsidered as it will negatively impact

on the development of the African airline

industry which is already suffering from

high cost as a result of high taxes and

charges.

d) African States in their relations with third

countries shall ensure that the interest of

other African countries and the continent

is taken into account. In this regard

States shall as much as possible inform

and consult with other Member States or

AFCAC where their dealing with third

country may potentially adversely affect

the interests of such other States.

Member States should file with AFCAC

all bilateral or multilateral air transport

agreements and arrangements that they

enter with third countries.

e) AFRAA representing the airlines which

are key stakeholders should be assigned

a role in the implementation and review

mechanism of the policy.

The Secretary General in an official

letter addressed to Dr. Aliu the

coordinator of the working group that

prepared the draft reflected the views of

AFRAA as follows;

“AFRAA believes that this document, if

adopted, will provide the necessary

guidance for the development of polices

by States at national and regional levels

to facilitate standardization,

harmonization and coordination which

will facilitate cooperation among

operators on the Continent.

The need for a continental aviation policy

clearly exists. The contents are all

encompassing. AFRAA agrees with

almost all the provisions which were well

considered by yourselves”.

The Policy document will therefore “provide a framework and the platform for the formulation, collaboration and integration of national and multi-national initiatives/programs in various aspects of Civil Aviation”

feature

Africa Wings6

Africa’s Commercial Aviation Market

According to the International Monetary Fund, over the next five

years seven of the world’s 10 fastest growing economies will be

in Africa. The people of Africa are rapidly turning to air travel as

the best way to quickly and safely travel both within Africa as well as to

major international business and tourism destinations. Direct foreign

investment, growing urbanisation and rising incomes will spur higher

domestic demand for consumer goods and transportation alike, fueling

the need for modern passenger and dedicated freighter aircraft to

maximise these significant economic opportunities.

Global Growth and Progressive Policies are keys to Drive Strong Market GrowthA sustained worldwide economic recovery will stimulate blunted

passenger and freight demand, both for African export commodities

and for imports to Africa of high-technology equipment, machinery,

pharmaceuticals, and manufactured goods. Also very important to the

continent is the development of the petroleum industry in West Africa,

which has been a significant driver for intra-Africa as well as international

travel and freight growth. But we also must be realistic and temper

By Doug Winter, Head of Sales, AWAS.

Poised for profitable expansion and modernisation.


Operator Area Avg Age

Africa 15

Asia 9

Australasia 10

Europe 10

Latin America 12

Middle East 11

North America 12

Unknown Area 20

Grand Total 11

Source: Ascend Online Sep 2011.

Leased Summary Share Versus the rest of the World* Globally the average for Leased Passenger Aircraft is ~38%. Africa

currently leases only 28% of their passenger fleet, a significant

opportunity to utilise the significant benefits of leasing such as: quicker

access to more modern aircraft, limited capital outlays, as well as a

future hedge against technological changes.

Operator Area Total PaxAircraft

Total onOperating

Lease

% OperatingLease

Africa 819 231 28.21

Asia 4116 1609 39.09

Australasia 481 185 38.46

Europe 5272 2467 46.79

Latin America 1307 608 46.52

Middle East 986 307 31.14

North America 6619 1968 29.73

Unknown Area 25 0 0

Total 19625 7375 38%

*Current Fleet, Western Built Jets / Total Aircraft In Service/Storage


Leasing as a Growth Tool for African AirlinesAs mentioned, today approximately 38% of the world’s active

commercial fleet is leased, and it is estimated that that figure may grow

to ~45% in 2015, and almost 48% by 2020 depending on global factors.

Longer term, manufacturers such as Boeing and Airbus project that the

world’s fleet will need to double by 2030 to match expected global

demand, therefore the importance of leasing as a necessary tool for

existing and new operators will grow even further.

Leasing is growing because today’s successful airlines understand the

benefits and options that this tool provides when compared to traditional

ownership. Whether it’s to provide fleet flexibility, capacity optimization,

financial portfolio management or a hedge against technical

obsolescence leasing is a strong part of a successful operator’s growth

toolbox.

Customers tell us that they believe their fleets should be a balanced mix

of leased and owned assets, with the percentage customized based

upon each organisation’s specific business model, current requirements

and future goals. Leasing has also become more popular because a

myriad of post-recessionary policies have significantly restricted airlines’

access to more traditional funding sources, such as the capital markets

and bank financing.

forecast upsides with the potential for conflict between countries and

social unrest that shake stability and harm growth across the continent.

Several trends suggest continued growth in African aviation.

The continent’s passenger jet fleet now averages over 15 years of age in

an era when increasing fuel costs require newer, more efficient aircraft.

Newer aircraft can markedly contribute to an airline’s successful bottom

line as reliability increases, maintenance costs decrease, and per seat

revenue increases due to dramatically lower fuel and overall operating

expenses. At the same time the current suboptimal infrastructure,

difficult terrain and political instability render intra-African ground

transportation problematic. The macro continental trends towards

resource exploitation and tourism will require increased, modern aircraft

capacity.

Build for Forecasted Growth: the Need to ExpandAirlines within Africa are evolving, from the predominance of state-run

airlines to the advent of privately owned operators with business models

focused upon competing with foreign operators that currently have the

leading share of higher margin, intercontinental routes. Middle Eastern

airlines have increased the competition for markets that traditionally have

been held by European carriers, along with offering larger more modern

aircraft, more departures, as well as lower fares.

A very positive development from African airlines is the emergence of

codeshare agreements with foreign carriers. The membership of African

airlines into the three global airline alliances Star Alliance, Sky Team, and

Oneworld, is also very progressive and pro-growth development.

State of the Current Commercial Aviation Fleet in AfricaMost of the current African fleet is single-aisle, narrow body aircraft

supporting flights within the continent and between North Africa and

Europe, traditionally Africa’s principal trading partner. As the demand for

African commodities grows and foreign development and tourism

increase, African carriers will require a modernised fleet in order to

compete on routes historically dominated by foreign carriers.

Today Africa represents only ~4% of the Global Western Built Passenger

Jet Fleet currently in service or stored and only ~2.2% of future orders

despite being the world’s second largest and second most populous

continent, after Asia. With +1.0 billion people in 61 territories, it accounts

for about 15% of the world’s human population representing huge raw

potential for aviation growth in the 21st century.

Operator Area In Service Storage Order Grand Total

Africa 654 165 180 999

Asia 3925 191 2445 6562

Australasia 456 25 206 687

Europe 4912 360 1511 6783

Latin America 1133 174 516 1823

Middle East 881 105 727 1713

North America 5820 799 1998 8617

Unknown Area 25 284 309

Grand Total 17781 1844 7868 27493


Africa also has the Highest Average Age for Passenger Units In Service

and Storage

economics

Africa Wings8

Forming a Partnership and Understanding an Airline’s Unique Needs In order to meet the growing needs of airlines

for flexible financial tools and customised

solutions, lessors must adapt and offer a fuller

range of global services. We talk to our

customers often about their fleets, work to

understand their unique operation, and

develop long-term relationships so we can

better meet their needs today, and anticipate

their requirements for tomorrow.

An example of this type of progressive

relationship is when a lessor can assist a

customer with fleet renewal by redeploying

assets that are no longer optimal for their

mission or business profile to another

customer, and concurrently provide access to

the right aircraft to fulfill that role. In order to

accomplish this result a lessor needs to have

the scale, global reach and relationships to be

able to successfully shuffle or grow their

portfolio to meet the needs of all parties

involved.

New Technologies to Drive Fuel and Overall Operating EfficienciesMany global airlines have seen the future, and

they have responded by ordering it. They have

placed large orders for next generation

technology aircraft that are promised to deliver

significantly lower operating costs,

maintenance, and enhanced fleet

performance. The combination of next

generation airframes and new engine options

are critical to helping improve airlines’

operational efficiency, as well as providing

significant environmental benefits versus the

current global fleet.

While lessors have ordered many of these next

generation aircraft, sales leasebacks will also

play a pivotal role in assisting operators to

finance and integrate these aircraft into their

fleets. Once again the ability to provide an

airline customer with the scale and solutions to

affect a fleet renewal program will be key, as

these new aircraft move in and more mature

aircraft need to be redeployed.

But remember this is 2011, and many of these

aircraft will not deliver for many years to come,

and that is if you already have placed an order.

A large number of airlines are still looking for

current modern lift to upgrade and replace

airframes that have become inefficient, or are

deemed unsuitable for further investment due

to their low book values.

Understanding the Aircraft is KeyProviding a flexible financing option is critical,

but the ability of a lessor to understand the

aircraft, providing technical expertise and

consulting to an airline will become of even

greater importance as fleets expand and adopt

new technologies. We are often asked to

partner with our customers to evaluate

potential options, appraise current aircraft

performance, and plan for fleet modernisation.

A lessor’s ability to provide this level of value-

added service can determine the depth of

relationship going-forward as well as the

quality of the solutions they can deliver.

We work with the airline as a seamless team to

customize new aircraft for delivery, and to

reconfigure and upgrade modern aircraft for its

next mission. The result is a better aircraft for

the customer as well as an asset that is

optimised for value over its lifetime.

Africa: The Continent for PossibilitiesWe believe that the stage is set for Africa to

embark upon a phase of significant growth

and modernisation that will transform its

aviation industry as well as help fuel positive

economic progress across the continent.

Aircraft Leasing can help both the intra-African

as well as international airlines expand and

drive profitable growth by offering rapid access

to more modern, efficient aircraft.

Doug Winter is the Head of Sales at

AWAS, one of the world’s leading lessors

of commercial aircraft and based in

Dublin, Ireland. He has over 25 years

experience in the Aviation industry

between Aircraft Leasing and Lease/

Financing. Prior to joining AWAS, Doug

was at GE Capital Aviation Services where

he held a number of Sales leadership

roles. Prior to his 13 years at GECAS,

Doug spent 12 years at McDonnell Douglas

Corporation.

You can contact the author at

[email protected]

AWAS Sales contact for Africa,

VP Mark Elgar: [email protected]

economics

Airlines today also require aircraft that can be

delivered in the near-term, and still can offer

a 10-20% operational benefit versus the aircraft

they replace. By having a pipeline of efficient,

modern aircraft available, lessors can provide

more immediate solutions to customers who

may not have delivery slots for some time

to come.

the stage is

set for Africa

to embark

upon a phase

of significant

growth and

modernisation

feature

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Africa Wings10

Virtualisation/Service

implemented by 2014.

Francesco Violante, SITA CEO,

said: “We are now entering the

era of the mobile-centric

passenger, who is not only able

to manage his or her journey

independently but also expects

personal and timely

communication from airlines,

airports and other providers of

travel-related services.

Smartphone penetration is

opening up new frontiers for

passenger self-service across

key steps of the passenger

journey from check-in to

boarding. Technology on mobile

devices, such as Wi-Fi and

Bluetooth connectivity, can be

used to improve passenger flow,

alleviating areas of passenger

concern such as queues at

border control and security.”

Every business in the aviation value-chain makes money except airlines for the simple reason that the airline business is characterised by

high costs and low margins. In 2010, airlines globally realised an average margin of 1.4% on revenue of $554 billion (the best in recent

years), and IATA estimates a 0.7% margin for 2011. To improve margins, airlines strive to cut costs by employing efficiency enhancing

technologies and constantly reviewing their business processes. While employees and passengers in some markets have felt the sting of cost

cuts, travel agents have suffered the most revenue loss resulting from airlines adapting e-commerce technology. Since 1995, travel agents have

witnessed airline ticket commissions reduced from 10% to 5% or less and more and more tickets are being sold online through airlines’ own

booking engines.

E-Commerce Fraud

Is your airline online revenue protected?

By raphael Kuuchi, Commercial Director - AFrAA

Technology Adoption is Growing FastAirlines seem to be on track to

directly control the majority of

ticket sales in the next couple of

years, if the current trend in

airline e-commerce is

maintained. Carriers continue to

gain more control of ticket

distribution with the proportion of

tickets sold via directly controlled

channels increasing. According

to a SITA 2011 IT Trends Survey,

72% of passengers can change

their reservation online, while

65% can purchase non-air

services (hotel, car, insurance)

directly on airline websites. The

reason for the focus on internet

sales over use of travel agents is

because online channels are the

most cost-effective ways of

reaching airline target customers

and concluding a sale. Airlines

have therefore been

aggressively promoting their

booking sites and encouraging

customers to book online by

offering a portfolio of services

along the travel value-chain

including frequent-flyer miles,

interactive seat selection, virtual

check-in, printing of boarding

passes and the ability to book

award travel at reduced rates.

Airline online ticket sales have

gained popularity among many

travellers and in 2010 alone

accounted for over $155 billion or

28% of airline revenues.

Airport kiosks and online check-

in are now widely used and new

alternatives such as mobile

check-in, off-airport check-in

and check-in by roaming

devices are rapidly being

adopted. The number of

passengers checking in at the

airport check-in counter

continues to decrease and it is

anticipated that check-in

counters in the future will be

dedicated to non-standard

check-in, staffed by agents

trained to handle complex

requirements.

Mobile phones are set to

become a significant sales

channel in the future. Almost

nine out of ten airlines are

actively selling, or planning to sell

tickets via mobile phones by

2014. 69% of airlines surveyed by

SITA sell or plan to sell tickets via

social media networks and 80%

of airlines plan to reach

passengers via social networks

by 2014. As a pointer to where

the industry is headed, SITA

revealed that 93% of airlines plan

to have Infrastructure


e-commerce

While technology efficiency

gains, passenger convenience

and self-service are the good

news, the bad news is that laced

with growing technology is

online fraud and crime.

Fraud on the riseThroughout the airline industry,

online fraud has been on the

rise. A Deloitte UK survey taken

in 2009 found that 48% of more

than 50 responding global

carriers said online fraud had

increased in the past year, and

each airline’s losses averaged

more than $2.4 million annually.

The general feedback from

airlines is that online fraud is

getting worse, and the main

driver has been the Internet and,

in particular, credit card type

bookings. An industry poll by

CyberSource, estimated airlines

worldwide lost over $1.4 billion to

online fraudsters in 2009: about

1.3% of airlines’ online revenue.

The growing risk of online sales

is a combination of the overall

rise in online purchasing and the

growing sophistication of those

who engage in credit card fraud.

Credit card abuse, particularly

using a stolen card details on a

website transaction is the

primary type of online fraud,

according to experts. Generally,

fraudsters use stolen credit card

information to buy a ticket for

themselves, or act as a travel

agent, and buy a ticket for someone else. But criminals are also

increasingly tapping into passengers’ loyalty accounts and using the

miles or points for travel. Although First and Business class seats

typically booked by premier passengers have been popular (both for

fraudsters wanting to take a trip and those looking to sell a ticket),

criminals are now booking seats in Economy class and further in

advance, to make their scams harder to detect. By the time the true

card owner reports the theft, the flight has usually been taken and the

airline loses 100% of the revenue.

Fighting Online FraudU.S. airlines tend to employ a high degree of automated solutions to

identify fraud compared to the Middle East, Africa and Asia where

airlines manually review many of their bookings. For Middle East

airlines, 81% of bookings are manually reviewed, compared to 49% for

Asia Pacific, 22% for Africa and just 3% of North American airlines,

according to a 2010 study by CyberSource. African airlines use on

average 4.7 detection tools (the least of all the regions) while the other

regions use between 5.4 - 7.5 tools.

The low use of online modes of payment notwithstanding, Africa in

2009 recorded the second highest online revenue loss of 1.9% after the

Middle East, 2.6%. The lowest online revenue lost in that year was

recorded by North America, 0.6% according to Cybersource.

Survey data released by CyberSource in 2010 indicates that, the ways

airlines manage fraud vary significantly by airline and by region. In

2009, airlines selling Business class, with higher-priced tickets to

protect, embraced online revenue protection measures, whereas low-

cost carriers tended to focus on revenue capture. On average, business

airlines used the most fraud detection tools (6.5 tools per business-

class airline), had the highest rate of manual review (47%), and rejected

more bookings due to suspicion of fraud (3.6%). Conversely, low-cost

carriers used the least number of automated screening tools (4.9 tools

per low-cost carrier), were less likely to manually review bookings (13%),

and rejected fewer bookings due to suspicion of fraud (2%). The result

of these differing strategies is that in 2008 business airlines lost 1.1% of

their revenues to fraud while low-cost carriers, by contrast, lost 1.6%.

Solutions to online fraud exist and some carriers are stepping up their

efforts to fight the vice with encouraging results. They are augmenting

the staff that tracks online crimes

and tapping into new technology that

can help detect it. While this is being

done by some airlines, there is

growing concern that fraudsters are

moving on to carriers whose

defenses are either weak or not yet

in place. Airlines have increased their

prevention efforts in the last couple

of years, hiring experts from the

financial services industry, expanding

anti-fraud teams and incorporating

new computer systems that are more

skillful at pinpointing suspicious

transactions.

Improving the efficiency of fraud

management is one of the quickest

cost-cutting moves airlines have at

their disposal. Fraud management

tactics vary widely by region, with

North American-based companies

relying far more heavily on detection

tools; employing an average of 7.5

tools versus a European average of

5.4 and an overall world average is

5.8. North American airlines manually

reviewed only 3% of their bookings

whereas Middle East-based airlines

manually reviewed 81%. European

and Asia Pacific and African airlines

manually reviewed 22%, 49% and

22% of their bookings respectively.

Yet all these regions report higher

incidents of online fraud than their

American counterparts. The

application of technology-based

fraud detection tools is therefore

paramount in securing online

revenue.

According to Dr. Akif Khan,

CyberSource Head of Client and

Technical Services in the UK, “These

findings highlight the need for

airlines to adopt a more automated,

holistic approach to fraud

management; from initial screening

through booking review and

disposition. Improving the accuracy

of automated screening is important.

In doing so, airlines can reduce

overhead costs associated with

manual review, as well as improve

revenue capture and lower fraud

loss. With the right tools, airlines can

realize these benefits in a matter of

weeks.”

Africa Wings12

In a situation whereby the global

demand outstrips available supply

of aviation professionals, there is

bound to be increased mobility of

professionals.

This has particularly affected African

airlines as African professionals

migrate to regions with higher

wages. It would seem that a basic

solution is to continuously train more

professionals and for the airlines to

consider strategies such as bonding of

trained experts. African Governments

can also support their airlines’ efforts

with introduction of enabling labour

policies. The AFI Plan has also been

working with African States and

Stakeholders including the AFRAA

to enhance training capacities and

capabilities within the African region

through coordination of training centers,

harmonization of training programs and

optimization of resources.

Q3. Why hasn’t there been an African air

transport policy till now?

A3. The Yamoussoukro Declaration and

the Yamoussoukro Decision, as well

as the recently developed Guidelines

for Negotiations of Air Services

Agreements with Third Parties are

elements of air transport policies.

However, what Africa lacked was a

common Civil Aviation Policy that would

cover not only the air transport but also

other aspects including safety, security,

One of the major achievements

is the establishment by ICAO

of the Comprehensive Regional

Implementation Plan for Aviation

Safety in Africa also known as the

AFI Plan. ICAO has also assisted

with the establishment of various

Cooperative Development of

Operational Safety and Continuing

Airworthiness Programmes (COSCAPs),

the establishment of Regional Safety

Oversight Organizations (RSOOs)

and in the implementation of Safety

Management System (SMS), the

Machine Readable Travel Documents

(MRTDs), the Performance Based

Navigation (PBN), the Reduced Vertical

Separation Minimum (RVSM) and other

programmes to enhance safety security

and efficiency of air transport.

As the chairman of the Steering

Committee for the AFI Plan. I am

particularly pleased with the renewed

efforts by many African States towards

the enhancement of aviation safety in

Africa.

Q2. How can the perennial issue of brain-

drain of African aviation professionals

be effectively addressed?

A2. The shortage of skilled aviation

professionals is a global challenge.

Based on the projected growth

of international civil aviation,

the need to attract, train and retain

sufficient number of qualified aviation

professionals to meet the demand of

a rapidly growing industry has been

recognized by the International

aviation community. This is the main

reason that ICAO introduced its Next

Generation of Aviation Professionals

(NGAP) Programme.

Q1. What is the role of the African

representatives on the ICAO Council

and what have been their achievements

to date?

A1. The Council is the International Civil

Aviation Organization's (ICAO)'s

permanent Governing body elected

by the ICAO Assembly every three

years to administer the organization's

activities. The Council has legislative,

executive, administrative, investigative

and quasi-judicial functions. It adopts

Standards and Recommended Practices

to regulate international civil aviation. It

administers ICAO finances and submits

budgets to the Assembly; it also

elects the President of the Council and

appoints the Secretary General of the

Organization.

The ICAO Council consists of 36

member States who appoint their

permanent Representatives to

serve on the Council. The 8 African

Representatives on the Council

contribute actively to the work of ICAO in

collaboration with their other colleagues.

They maintain liaison between ICAO

and their States. They also coordinate

with the African regional bodies

including the African Union, the African

Civil Aviation Commission (AFCAC), and

with the Industry in order to articulate

African position and advance the

interest of African civil aviation at the

global level. They also assist in ensuring

implementation of ICAO Programmes

and Policies within the African region

thereby promoting harmonious

development of international civil

aviation. African Representatives have

ensured that African States receive

necessary technical assistance and

training.

Interview with Dr. 0.B. AliuDr. O.B. Aliu is the representative of Nigeria on the ICAO Council, based in Montreal, Canada.

An Aeronautical engineer by training, Dr. Aliu has vast experience in aviation management

and over the years has contributed to the development and growth of African aviation. In this

exclusive interview with Africa Wings, Dr. Aliu sheds light on a broad range of subjects touching

on African aviation development.


Q7. Safety is a major challenge in Africa

as highlighted by the ICAO USOAP

findings. What can be done to speedily

help countries with significant

safety concerns address identified

deficiencies?

A7. The ICAO AFI Plan was approved by

the 36th ICAO Assembly to assist

African States in addressing Safety

Oversight deficiencies. Its activities are

based on three focus areas namely; to

enable States establish and maintain

effective Safety Oversight Systems;

assisting States to resolve identified

deficiencies within a reasonable time;

and the enhancement of safety culture

of African Aviation Service Providers

(AASP). In this regard, the AFI Plan

has assisted the Banjul Accord Group

of States in the establishment of the

Banjul Accord Group Aviation Safety

Oversight Organization (BAGASOO).

Work is also ongoing to assist other

regional bodies to establish their

RSOOs. Under the AFI Plan Regional

Office Safety Teams comprising ICAO

safety officers within the ICAO Regional

Offices in Africa are also available to

provide advice to accredited States

in the implementation of tailored

Action Plans to eliminate deficiencies.

Numerous trainings are being provided

annually to African States on various

aspects of safety oversight and safety

managements. Many of the States

have also concluded aviation safety

assistance projects through the ICAO

Technical Cooperation Bureau.

Of significant importance is the

establishment of the AFI Cooperative

Inspectorate Scheme (AFI

CIS) through the ICAO AFI Plan in

collaboration with AFCAC as the

implementing agency. This is to

assist States with significant safety

concerns particularly in air operator

certification. Under the Scheme

qualified and experienced inspectors

from African States are pooled and

their services may be used upon

request by the States that currently do

not have inspectors to undertake their

certification functions.

airports, air navigation, meteorology,

aviation, training, and financing etc. This

policy should serve as an overarching

framework for harmonized development

of civil aviation in Africa.

Q4. Is anything being done to develop one?

A4. I am pleased to inform you that I

have had the privilege and honour to

coordinate the development of the

African Civil Aviation Policy (AFCAP)

under the auspices of the African Union

Commission. The work has reached an

advanced stage. In fact the final draft of

the document has been circulated to

member States, Regional Economic

Communities (RECs) and Stakeholders

for their comments. My expectation

is that the AFCAP will hopefully be

approved by the next meeting of African

Ministers of Transport. The document

covers all aspects of civil aviation as well

as intermodal transports systems and

linkage of civil aviation development

with other economic sectors. It

includes policies and strategies that,

if implemented would foster the rapid

and harmonious development of civil

aviation in Africa.

Q5. How does ICAO view the EU

environmental trading scheme?

A5. It is not my role to express ICAO’s

views on the matter. However

speaking in general, you would recall

that ICAO member States at the last

37th Assembly recognized that a

comprehensive approach that includes

technical solutions such as the use of

fuel efficient and low-carbon aircraft

technology and operational techniques,

efficient air traffic management and

the use of alternative fuels, as well

as Market-Based Measures (MBMs)

is necessary to promote sustainable

growth of aviation and reduce

emissions. It is to be noted that Emission

Trading Schemes are part of MBMs.

interview

The Assembly also reemphasized the

need for continuous ICAO leadership

in addressing matters of climate

change in international civil aviation

and requested the ICAO Council to

develop, with the support of member

States, a global framework for MBMs

in international aviation.

The Assembly Resolution A37-19

includes several provisions and

principles for the implementation of

MBMs that all ICAO member States

are expected to apply. In particular the

Resolution urges States to engage in

constructive bilateral and/or multilateral

consultations and negotiations and to

reach agreements with other States

when designing and implementing

MBMs.

In addition to these ICAO provisions,

African States like many other

developing States as you are already

aware do support the application of the

United Nations Framework Convention

on Climate Change (UNFCCC) principle

of Common But Differentiated

Responsibility (CBDR) in addressing

climate change.

Q6. African airlines feel they are not

given fair treatment by civil aviation

authorities when it comes to market

access compared to their non-African

competitors. What are your views on

this?

A6. Many African airlines have not been

able to exercise the frequencies allotted

to them in the existing Bilateral Air

Services Agreements (BSASAs) due

to several operational constraints,

including inability to secure necessary

slots, as well as noise curfews and

quotas at destination airports. African

States have brought these challenges

to the attention of the international civil

aviation community at various ICAO

conferences. As a result of these efforts

ICAO undertook recently a review of the

ICAO Template Air Services Agreement

to include new provisions with regard to

market access which member States

may use to their advantage when

concluding BASAs.

Africa Wings14

Q9. Aviation infrastructure in Africa is poor

in some States despite the high taxes

and charges levied on operators.

Where is the problem and how can it

be rectified?

A9. Aviation infrastructure including the

airports and air navigation systems

involves modern engineering

technology and precision equipment

to ensure safety and efficiency of

aircraft operations. It is a highly capital

intensive investment and requires

huge financial resources for acquisition

installation, maintenance and renewal.

Its sustainability therefore is depended

on air traffic volumes and good revenue

streams. Unfortunately in many of the

States the traffic is low and cannot

generate enough revenue for the

modernization and sustenance of

the requisite aviation infrastructure.

The Aviation Industry is also often not

able to secure additional subvention

from governments as there are other

competing socio-economic priorities

such as education and health. As

a matter of fact many of the States

actually seek to subsidize other sectors

from the little revenues collected

by aviation service providers. In this

regard ICAO has issued policies that

urge States to ensure that revenue

generated from aviation is retained

for aviation development. ICAO has

also encouraged the establishment

of autonomous agencies in order that

the service providers have greater

autonomy in managing their funds

and in facilitating renewal of aviation

infrastructure.

Many airports are now generating

increasing percentages of their

revenues from non-aeronautical

sources. There is also room for

collaboration among States for

the joint provision of services. The

ASECNA model involving 17 African

States is an excellent example that

should be explored by many regional

groups in Africa.

Q10. What is your prognosis about the

state of the African aviation industry

by 2020?

A10. Air transport will continue to play

a key role in the development of

trade and tourism and in the social

economic integration of Africa.

With its land mass, population and

inadequate connectivity through other

modes of transportation. Africa has

great potentials for the growth of air

transport. The industry is expected to

continue to grow at over 5% annually.

However while it is apparent that the

African aviation industry is currently

facing numerous challenges I believe

these challenges are surmountable if

we all collaborate and work together.

This requires concerted efforts by the

States and Industry Stakeholders.

States need to implement enabling

policies to foster the development of

the industry, and the industry operators

need to collaborate among themselves

to increase their share of the African air

transport market.

I am happy that over the past few

years there is increasing recognition

being given to civil aviation as a vehicle

for economic development and that

there is a renewed commitment of

States and industry to work together

to develop the industry. So I am very

hopeful for a brighter future for the

African aviation industry.

Interview

The AFI CIS inspectors, when assisting

a State, do their work under the direction

and on behalf of the State's Director

General. The Scheme also affords the

opportunity to give on the job training to

the national inspectors.

Q8. What is holding African States

back from fully implementing the

Yamoussoukro Decision?

A8. The Yamoussoukro Decision was

made pursuant to the Abuja Treaty

and was adopted by African Heads

of States. The implementation of

the Yamoussoukro Decision should

advance the development and growth

of intra African air traffic and facilitate

speedy integration in the continent.

Thus all AU member States were

expected to honour their commitment

to implement this Decision effectively.

However it is unfortunate that more

than a decade after its adoption the

Yamoussoukro Decision is yet to be

fully implemented with the major reason

being lack of political will by many

States. It should also be noted that the

reluctance of many of the States to

grant other African airlines the traffic

rights to operate as provided for in

the Yamoussoukro Decision seem to

be based on the ill-advised notion of

protecting their national carriers from

competition. Meanwhile the air transport

market in Africa is dominated by non-

African airlines.

In this regard African airlines have a

great role to play in encouraging their

respective States to implement the

Yamoussoukro Decision. In order to

ensure mutual survival, African airlines

should strive to collaborate among

themselves rather than encourage

protectionist tendencies.

The AFCAC as the Executing

Agency for the implementation of

the Yamoussoukro Decision should

redouble its efforts in collaboration with

the AU, the RECs, States, AFRAA and

other Stakeholders to ensure the full

implementation of the Yamoussoukro

Decision.

Africa Wings16

AFrAA diary

royal Air Maroc Hosts AFrAA 43rD AGAThe 43rd African Airlines Association (AFRAA) Annual General Assembly and conference will be

held in Marrakech, Kingdom of Morocco from 20 - 22 November 2011, at the invitation of Royal Air

Maroc. The theme of the AGA is, 'Harnessing Growth Opportunities Together'.

In addition to statutory issues to be discussed by the Assembly, there will be a high level CEO’s

Forum that will debate topical industry issues and chart strategies for the future. The conference

will also feature panel discussions and special presentations by renowned experts, consultants

and airline CEOs. There will be an exhibition of some of the latest technology applications and

products in the industry.

AFrAA Secretary General at TAAG Angola AirlinesThe Secretary General of AFRAA, Dr. Elijah

Chingosho, paid a visit to TAAG Angola

Airlines from 15-16 August, 2011. During the

visit, he witnessed the huge strides that TAAG

Angola Airlines have made in the recent

years, under the visionary leadership of its

energetic, knowledgeable and experienced

Chairman, Dr. Antonio Luis Pimentel Araújo.

Some of the critical milestones achieved by

the airline include the following:

• In 2009, recertification by the countrys

Civil Aviation Authority, INAVIC and IATA

Operation Safety Audit (IOSA) registration,

reactivation of IATA membership and

TAAG received permission by the EU to

fly to Lisbon with its Boeing 777-200 ER.

• In 2010, a new Board was appointed

to continue TAAG’s path to excellence.

The airline started Extended Range Twin

Engine Operations ETOPS Operation with

Boeing 777.

• Modernization of its long haul fleet (phase

out of the B747-300 Combi, arrival of the

new B777-300 ER) and the introduction

of an additional route to Europe, namely

to Oporto in 2011.

In turning around the airline, TAAG‘s

executive management team adopted a new

management philosophy, focused on safe

operations and professional, responsible

working behaviour. Among other things, the

airline is developing and maintaining the

Quality Management System and the Security

Management System whilst fostering change

management, training and continuous

improvement.

Participants who attended the Joint Fuel Purchase meeting in Nairobi.

AFrAA Diary

AFrAA Holds Third Joint Fuel Purchase Project Meeting The third meeting of the AFRAA Joint Fuel Purchase Committee was held on 27 September 2011,

at the AFRAA headquarters in Nairobi, Kenya. Nine airlines were represented. The Chairman, Eng.

Chris Oanda of Kenya Airways observed that fuel continues to be a key cost component in the

cost structure of all the airlines. He further noted that the CEOs and MDs had taken serious note

of AFRAA’s initiative to add value to its members by coming up with projects such as this joint

fuel purchase project.

The Chairman observed that such an initiative stood to benefit African carriers even more than

other international carriers due to their unique challenges. He pointed out that the Arab carriers

had found it necessary to purchase fuel jointly, yet they have the advantage of operating in oil

producing regions.

Ms. Mirna Khalil, Fuel Manager of the Arab Air Carriers Organization (AACO) Joint Fuel Purchase

Project shared AACO’s experiences and challenges on the project. Ms. Mirna provided the

Committee with useful insights on how to set up and run a joint fuel project.

The Secretary General of AFRAA, Dr. Elijah Chingosho acknowledged that the level of

representation by the different airlines reflect the importance attached to this meeting. The

meeting ended on a high note with the Committee positive about the success of the project. The

airlines that attended the meeting were Kenya Airways, Ethiopian Airlines, LAM Mozambique, Air

Mauritius, Air Malawi, Air Namibia, PrecisionAir, RwandAir and TAAG Angola Airlines.

PHOTOS courtesy of AFRAA.

Ph

oto

:File

.

Ph

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:File

.


African Airlines route Network CoordinationEfforts by the African Airlines Association (AFRAA) to encourage airline cooperation

through coordination and harmonization of their route networks received a major boost

with Sabre Airline Solutions offering to provide consultancy assistance to AFRAA and its

members. This was the outcome of a meeting between the Secretary General of AFRAA,

Dr. Elijah Chingosho and the Sabre Airline Solutions Vice President and General Manager

for Middle East and Africa, Mr. Maher Koubaa at the AFRAA Headquarters in Nairobi

recently. Following the meeting and commitment of Sabre Airline Solutions to support

the project, a technical evaluation and analysis of the networks of African operators will

be done by Sabre following which a framework agreement will be signed by the parties.

Preliminary assessment of the route networks operated by African airlines indicates

substantial benefits could be derived through harmonization and realignment.

The benefits will include increased passenger numbers, better utilization of aircraft,

increased revenue, improved connectivity, shorter transit times at airports as well

as reduced costs on

transit passengers’

accommodation. With

experience in network

harmonization and

coordination in the Middle

East and Latin America,

Sabre Airlines Solutions

hope to assist African

airlines improve performance

and better their commercial

cooperation.

African Aviation Suppliers’ ConventionThe African Airlines Association is planning to stage

the first African Aviation Suppliers’ Convention from

7 - 9 March 2012 in Nairobi. The conference will bring

together aviation companies on the continent and

manufacturers, suppliers, vendors and distributors

of aviation products and services under one roof

to network and discuss business. There will be

presentations and panel discussions on issues

pertaining to relationship management, financing,

inventory management as well as one-to-one

meetings between aviation companies and suppliers

to discuss specific issues of interest. According

to AFRAA, the objectives of the conference and

exhibition will be to develop a sustainable aviation

business support-base on the continent, garner

synergy among sector players, facilitate networking,

share industry best practices on emerging technologies

as well as avail choice to aviation companies in Africa.

The conference and exhibition aims to attract airlines,

airports, ground handlers, Air Traffic and Navigation

Services Providers and Civil Aviation Authorities

on one hand and aircraft/engine and component

manufacturers, suppliers of Information and

Communication Technology (ICT) products, handling

equipment and safety products, lessors, financiers,

MROs, training organisations and Global Distribution

Systems (GDSs) and aviation data business on the

other. Commenting on the event, the Secretary General

of AFRAA, Dr. Elijah Chingosho said, “It will provide

opportunities for networking, direct sales and one-

to-one discussion on an important aspect of every

aviation company‘s business that has hitherto not had

such a forum.”

The Suppliers’ conference is being organized by

AFRAA in partnership with Events Management

Solutions (EMS), a Kenyan-based conference

management company.

For more information on this event, please contact

AFRAA through the following email:

[email protected]

AFrAA Aero-political Task Force Holds First Meeting The AFRAA Aero-Political and Regulatory Task Force

held its first meeting at the AFRAA headquarters,

Nairobi, Kenya on 2 September, 2011. The meeting

was attended by Ethiopian Airlines, Kenya Airways,

EgyptAir, LAM Mozambique Airlines, South African

Airways and Precision Air.

Among other things, the team discussed the EU List

of Banned Airlines (Blacklist) and recommended that

AFRAA facilitate assistance by member airlines that

AFrAA diary

Sabre and AFRAA team at the AFRAA Headquarters.From L-R: Mr. Tamrat, Ms.Amilia, Dr. Chingosho, Mr. Kombaa and Mr, Kuuchi

AFrAA Meets AACOAs a follow-up to a visit in December 2010 to the headquarters of AFRAA in Nairobi to

explore areas of mutual cooperation, the Secretary General of AFRAA, accompanied by the

Commercial Director and Manager, Corporate Finance and administration, visited AACO in

Beirut, Lebanon on 23 September 2011.

During the visit, the Secretary General of AACO, Mr. Abdul Wahab Teffaha, shared AACO’s

success stories with the AFRAA delegation. The two Associations discussed a number of

areas of collaboration and agreed to liaise closely and adopt common positions on industry

issues affecting the interest of airlines in the two regions.

AACO accepted a request by AFRAA to send their Fuel Manager, Ms. Mirna Khalil, to Nairobi

to technically advise the AFRAA Joint Fuel Purchase Steering Committee at a meeting held

on 27 September at the AFRAA headquarters. The two bodies pledged their support to the

industry and to work for the common interest of their members.

Ph

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:File

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Africa Wings18

AFrAA Diary

have the capacity to assist others – both members and non-members – to enable them achieve

IOSA Certification. In addition, AFRAA would continue to put political pressure on African States

to take their safety oversight obligation seriously and meet international standards. The team

recommended that AFRAA through the African Union (AU) /African Civil Aviation Commission

(AFCAC) and other appropriate forum should continue to expose the political and economic

objective of the EU banning list and its negative impact on African carriers.

With regards to Global and Regional Liberalization, the Task Force proposed that the major African

carriers and their Governments should take the lead in the implementation of Yamoussoukro

Decision (YD). AFRAA was urged to relaunch the Club of the Ready and Willing States (CREW)

to jump start the process of implementation. The Committee reviewed a draft Airline Service

Commitment Agreement proposed by the Secretariat and agreed to develop it further with input

from other members of AFRAA.

The Task Force agreed to include high taxes and charges, particularly in Africa, in its work

programme and recommended that focus should be directed to collecting and analyzing data

related to taxes and charges in Africa.

Members of the Aero-Political Taskforce at the AFRAA Headquaters in Nairobi.

Aviation and Allied Business Leadership Conference, held in Dar es SalaamAviation and Allied Business Journal held its

17th Annual Leadership Conference in Dar es

Salaam, Tanzania under the theme, “Fostering

Africa’s economic development thorough air

transport”. The conference was opened by

the President of Tanzania, His Excellency Mr.

Jakaya Kikwete. Among the attendees, were

Ministers from seven African States as well as

representatives from civil aviation authorities,

airports, airlines, service providers and ground

handling companies. AFRAA Secretary

General, Dr. Elijah Chingosho, delivered a

speech at the opening session highlighting

the need for the full implementation of the

Yamoussoukro Decision (YD), reduction of

taxes and charges on passengers and fuel,

removal/elimination of monopoly ground

handling companies, urging States to register

their opposition to the EU Emissions Trading

System (EU-ETS), the EU blacklist whilst also

urging States to take their safety oversight

responsibilities seriously.

The AFRAA Commercial Director, Mr.Raphael

Kuuchi moderated a panel discussion on

'Rethinking the Yamoussoukro Decision.' At

the conclusion of the interactive discussions

that saw divergent views on the intra-African

liberalization, the conference agreed to set

up a three-man high level panel of ministers

to provide the needed impetus to the

implementation of the Decision and unlock

any difficulties impeding the process. The

team is made up of ministers of transport

from Tanzania, Ghana and Uganda. They

will facilitate the work of AFCAC (Executing

Agency) in the YD implementation process.

The conference deliberated on a wide

range of industry issues including finding

ways to ensure the full implementation of

the YD, improving safety on the continent,

airline financing, airports and infrastructure

and embracing the latest ICT technologies.

Ethiopian Airlines and Precision Air shared

their success stories with regard to the HR

development, leadership and corporate

governance.

Embraer Airline Business SeminarThe Brazil headquartered regional aircraft manufacturer, Embraer, sponsored the first Airline

Business Seminar in Africa from 19-21 July 2011 in Nairobi. The event was attended by airlines,

leasing companies and air transport experts and was facilitated by resource people from the

industry, academia and Embraer. The seminar took a holistic view of air transport in Africa and

reviewed the economic trends and drivers, connectivity, market outlook, planning for success

and demand/capacity matching. Practical experiences were shared with delegates by the

MD and CEO of Kenya Airways, Dr. Titus Naikuni, the Secretary General of AFRAA, Dr. Elijah

Chingosho and a Director from Azul Airlines (a successful new airline in Brazil).

At the conclusion of the seminar, Mr. Mathieu Duquesnoy, Embraer Vice President Middle East

and Africa reaffirmed the manufacturer’s confidence in the African market and pledged to

support their customers and the industry on the continent through its partnership with AFRAA.

Embraer is looking at consolidating and growing its business portfolio in Africa and to

supporting the operations of its aircraft. This move is consistent with the rapid adoption of the

E-Jets by many African airlines and the role the Embraer 30-120 seater range of aircraft can

play in effectively serving the growing intra-African markets. Mr. Mathieu Duquesnoy, Embraer

VP for airline markets in the Middle East and Africa says, “We are analyzing what should be

the best penetration of customer support, both in terms of training and spares support.” The

company has already committed to placing a spares facility in the Middle East that would also

cover Africa, but more may be needed. Though no decision has been made, one potential

location for a spares facility may be Kenya, where Embraer’s ties are expanding with Kenya

Airways now operating eight E-Jets. Other African E-Jet operators are LAM Mozambique,

Air Nigeria and EgyptAir. South African Airways has ordered two 170 regional jets, although

delivery dates are not yet confirmed. Source: aviationweek.

Photo:File.


feature

Airlines Prepare for Simplified Interline Settlement (SIS) Project as the Project Goes Live

Simplified Interline Settlement (SIS) is

a major project which will have an

impact on all the ICH members once

fully implemented. SIS has been viewed not

just as an IT project but also a business

re-engineering process which will provide

African Airlines with the opportunity to

review their systems and undertake

significant changes in order to derive the

maximum benefits of this industry change.

The Overview of the Project

The Simplified Interline Settlement (SIS)

project aims to simplify interline billing, and

removes paper from the entire process,

delivering tangible financial benefits to the

industry. The Clearing House intends to take

advantage of today's all-data world through

SIS by eliminating paper from the clearance

process through the ICH Web. The

Integrated Settlement (IS) solution will

among other benefits, not just eliminate

paper and simplify the entire process to

allow for more effective exchange of

transaction information between billing

entities and their interline partners. An

additional anticipated benefit is that the SIS

Project will enable revenue accounting and

interline settlement to be simpler, cheaper

and paperless.

What are Some of the Expected Benefits of the Project?

a) Elimination of data entry as the internal

IS processes will then create the

invoice and settlement file from the

billing data, ensuring that the billed

carrier will not need to reconcile

incoming data. This will result in

reduction in billing and rejection

timelines and decentralization of ICH

submissions will be possible.

b) The central file repository will store

documents for as long as they are

needed for operational reasons and

carriers will be able to request longer-

term storage. This will be beneficial

especially with rejections as the

rejecting carrier will not need to

re-upload any received documents

since the new rejection memo will be

referenced to the old referenced

supporting documents. Detailed

reports and processing dashboard will

be available in SIS with value

determination and auto billing.

c) Cost savings due to elimination of

paper and better cash follows due to a

faster rejections process. Today, a

carrier may wait up for up to one

month between receiving the

electronic data files and the paper

invoice and supporting documents.

Not being migrated will be very costly

as Airlines would not be able to collect

their revenues if out of the clearing

house.

As airlines prepare to migrate to SIS, the

necessary framework should be put in

by Juliet Indetie, AFRAA Corporate Finance and Administration Manager.

place:

1) Making a business case to Management

The new system comes with cost implications which require both planning and

budgeting. Airlines with revenue accounting systems which cannot support SIS would

need to either up-grade or source for a new system.

2) E-Invoicing

Ensuring legal compliance will be a challenge in some countries as e-invoicing means

that all invoices and supporting documents will be electronically captured. Some

countries have differing laws regarding e-invoicing. However there will be optional

services such as digital signature which will address some of the legal requirements in

what constitutes a legal invoice.

3) System and business changes

Airlines need to plan the migration process to be in line with the migration process of

their interline partners especially to ensure that there will be no disruption with the

interline partners who may migrate early.

As per IATA, the SIS project met its target global go-live date of SEPT 2011, having

followed the following stages:

SIS Development

2008 - 2010 Coming Up SIS G0-live Dates

Sep 2011 PAX and MISC

Apr 2012Cargo and UATP

Pilot Testing

release ofParticipation

Dociments

AFRAA Corporate, Finanace and Administration Manager Mrs. Indetie, receives Cetificate of Appreciation from IATA

Africa Wings20

feature

Below is the time line which airlines need to be aware of to ensure adequate planning:

2011 2012 2013

SEPT DEC MAr SEP APr

3 Months 3 Months 6 Months 7 Months

Go Live No More Paper Must Bill IDEC Mandate

Via IS Discontinued

Source: IATA

The ICH is key to many Airlines as it goes to the heart of the airlines’ revenue collection abilities. SIS is mandated and after April 2013, all Airlines must

have migrated or they will not be able to get payment via the Clearing house. Airlines can migrate in stages but all the migration must be complete by

April 2013. After this date anything not submitted via IS will not be cleared via the ICH. Airlines need to start preparing for changes especially African

airlines who also face unique challenges such as power, and internet interruptions.

AFrAA’s role

Airlines need to start preparing for changes, especially African airlines who also face unique challenges such as power, and Internet interruptions.

AFRAA hosted the first SIS workshop in May 2010 in Africa which was facilitated by IATA and the workshop attracted a large number of delegates.

During the workshop, it was evident that many African Carriers were not on track for the implementation which raised a great deal of concern.

there were no airlines in the Africa region which were involved in the pilot testing and this was attributed to logistical and financial limitations. Based on

the lack of representation at the pilot testing and planning stages, AFRAA sought to work closely with IATA to ensure that the interests of its members

were adequately addressed. AFRAAs role in supporting the implementation of SIS project of assisting Airlines with knowledge and capacity building

was recognised by IATA.

Challenges Expected by African Carriers

• SIS is a major project which will have an impact on all the ICH

members, once the project is implemented. All members will have

to upgrade their systems and there are notable system changes

especially in miscellaneous billings.

• In some countries the law doesn’t recognize e-invoicing and airlines

will have to find solutions within their existing laws and working with

the relevant government departments as the proposed law may have

requirements e.g. encryption and digital signatures.

• First and Final Carriers will need to prorate switching, and for the non-

First and Final carrier prorates are costly. Changes in First and Final

Passenger billings will have system implications. Change of rejection

billing to total amounts may impact accounting entries.

• The Migration process would prove to be quite a challenge especially

for carriers whose interline partners will opt for the early migration. The

carriers will have to forge a working relationship as they prepare to

migrate.

AFRAA, together with IATA SIS project team, hosted the Africa SIS

Awareness Workshop in Nairobi from the 10th to 12th May 2011. The

workshop was facilitated by experts from IATA. The well-attended

workshop attracted a total of 70 delegates from 25 Airlines including

15 AFRAA members. Two AFRAA partners, Hahn Air and Travel Port

together with AFRAA sponsored the workshop which was at Panari

hotel, Nairobi, Kenya.

The workshop was officially opened by the Secretary General of AFRAA,

Dr Elijah Chingosho who emphasized the need for African airlines to

adapt modern cost effective technology in order to remain competitive

and relevant. He reassured the airlines that AFRAA would continue to

provide all the necessary support and work closely with IATA for the

betterment of the industry in Africa. As in the E-ticketing project, AFRAA

is committed to assisting its members to ensure that they are SIS

compliant within the stipulated time frame.

During the 45th Revenue Accounting Meeting held from the 13th to 15th

September 2011 in Miami, KQ was recognized as one of the 19 Airlines that

are now certified to go live on the SIS project which is a commendable

achievement and hopefully other African Airlines will receive the

certification. AFRAA was recognized for its role in creating awareness and

training for its members and Mrs. Juliet Indetie, Manager Corporate Finance

and Administration received a certificate of appreciation.


Way Forward

Step 1• Ensure that all teams are aware of the changes to billing rules and

processes including Finance department.

• The project team should have the IS Participation Guide from the

SIS website.

• Ensure that the invoicing units are on board.

• Ensure that the airline is signed up, profile data is correct, and staff

have log-on IDs and training before IS goes live.

Step 2• Signing the IS Participation Agreement where the same terms

apply to all participants in order to ensure equal access, rights, and

responsibilities, with IATA acting in its role as the industry’s trade

association providing critical services to its members at minimum

cost. The IS Participation agreement is not subject to negotiations

or variations.

• To participate in SIS, the primary requirement is to sign the IS

Participation Agreement itself and Attachment B if any additional

services are also to be used (such as digital signatures).

• Sandbox: Upon signing the participation agreement, you have

access to the Sandbox where you are able to carry out file testing

and to SIS for set-up of your member profile and legal location

data.

Conclusion

The Aviation industry is being driven by the major carriers that have

developed systems and are not struggling with simple infrastructure

problems. Unfortunately, the pace will not be slowed down for the

African carriers to 'catch their breath!'

African airlines need to develop their human capacity if they are to keep

up with the technological advances that is facing the aviation industry.

African airlines should also consider engaging before the forums and

strategise on how to present some of their issues. It is normally very

clear that the major international carriers agree on most of the issues

and support each other during forums.

African airlines need to look for regional solutions such as joint projects

and develop capacity. Experience has shown that most of the African

carriers wait to adopt changes at the last minute as opposed to being

proactive, maybe it is time to change this mind set.

feature

Africa Wings22

Algerie. The -500 variants will still

be produced concurrently with

the newer -600s until 2013. ATR

has hinted that 2014 will see the

termination of the -500

production run. However, the

manufacturer does not want to

rule out -500 orders too quickly,

in case a -500 customer would

want to keep fleet homogeneity.

The most noticeable upgrade

on the -600s is an enhanced

cockpit equipped with upgraded

avionics instrumentation. This

includes the latest navigation,

recording, autopilot and

communications.. The

introduction of a glass cockpit

comes with a completely new

avionics suite.

The rationale behind the

commissioning of the new

cockpit according to ATR was to

provide the crew with the most

realistic picture of the in-flight

situation, while evolving to cater

for the latest navigation and

communications techniques that

will come over the next decade.

The new avionics replace the

Electronic Flight Instrument

System (EFIS) with five large liquid

crystal displays that comprise of

two primary flight displays, two

multi-function displays and one

engine and warning display. The

-600s will be capable of Category

IIIA approach, (landing with a

decision height of 50 feet) and

Required Navigation Procedure

(RNP) capabilities. The new

avionics are also compatible with

Algerie. The -500 variants will still

Aircraft Analysis – ATr 42/72 600 Series

Being the launch

customer of a new

aircraft can provide an

air carrier with a number of

advantages; this can be a

significant contribution to the

design process, or possibly

secure a good deal on the unit

price of the aircraft- not to

mention the enormous

publicity opportunity involved.

As the international media

converged on the 2011 Paris air

show, it became evident that

attention quickly turned to a

shiny new ATR72-600 painted

in the livery of its launch

customer Royal Air Maroc

(RAM). The European

turboprop manufacturer used

the Paris platform to debut its

latest product which it claims is

now the most advanced

turboprop in its class.

ATR launched the

ATR42/72-600 programme in

2007 as a progression from

the -500 series. In 2009, RAM

signed an order worth more

than $125m for two ATR42-

600s and four ATR72-600s

with options for two additional

72-600s.

In justifying the reasons

behind the ATR purchase, Mr.

Driss Benhima, president of

RAM, said the new ATR

derivatives had the most ideal

operational attributes for its

operations. “We decided to

launch a call for new turboprop

aircraft and according to the

results of our technical,

By Keith Mwanalushi

ATR CEO Filippo Bagnato (right) hands over keys to a new ATR72-600 to Mr. Driss Benhima president of RAM.

economical and exploitation

studies, the ATR-600 series

proved to be the right choice for

us.”

The new ATRs will be

operated exclusively by regional

subsidiary RAM Express. The

aircraft are configured with 48

and 70 seats for the - 42 and

-72s respectively. “We are using

the new ATRs to provide new air

connectivity to the regions,

enabling them to reinforce their

appeal and helping to promote

inland tourism,” said Mr.

Benhima.

A critical factor worth noting is

the climatic conditions in North

Africa. Operations in desert or

near desert conditions can be a

problem for an airline, having to

take into consideration adverse

factors such as extreme

temperatures and sand.

Turboprops that are able to

produce an optimal performance

in such hot conditions have an

operational advantage.

The design philosophy for the

new ATRs supposedly addresses

the adversity. The high wing

provides an obvious advantage –

it shields the engines from sand

erosion. On some jets with a low

wing, sand can cause problems

including premature engine wear.

The ATR72-600 obtained

European Aviation Safety

Agency (EASA) certification in

May 2011, a prerequisite for its

entry into service. The smaller

ATR42-600 is due for

certification by the year end with

service entry expected in 2012.

The list price for a new 72-600 is

$22.7m, which is $800,000 more

than its predecessor, the 72-500.

The 42-600 sells for $18.9m,

again $800,000 more than the

-500 version.

ATR say the -600s have built

upon the improvements of the

current -500 series, which has

proved popular with a number of

African carriers such as Air

Botswana, Precision Air and Air


also faces home-grown LCC

competition in the form Air

Arabia Maroc a cross- border

joint venture formed by Air

Arabia and Moroccan investors

in 2009 which first flew in May-

2009 as well as Jet4you, the

country's first private LCC, which

commenced service in February

2006.

"We cannot get rid of this

competition,” affirmed Benhima.

“We have to face it. We will

reinforce our position as a legacy

carrier and develop our hub

network from Casablanca."

However, it seems that reinforcing

the carrier’s position might be

tougher than expected. The recent

political issues in the region and

terrorist attacks in the country

have reduced crucial tourist

arrivals.

The drop in passenger

numbers came amid proposed

job cuts as the airline admitted

to continuing losses. Some

analysts project losses of

around $100m for this financial

year. The staff cuts could

equate to more than a quarter of

the entire workforce. At the time

of the announcement Mr.

Benhima said that the

redundancies were designed to

“turn around and develop the

company,” which has been in a

“critical situation” since the start

of the global downturn. He said

that RAM would be selling some

of its non-aviation assets to

fund the cost of the

redundancy settlements.

By replacing older aircraft with

new ATRs and B787s on order,

this should reduce RAM’s

operating costs. The airline also

has several 737-800s on order,

allowing the airline to retire its

ageing 767s, 737-400s and

–500s. The airline has officially

announced that it will reduce its

fleet size due to its financial

situation with some aircraft

heading for storage.

feature

A new glass cockpit comes with a completely new avionics suite.

the much anticipated Auto

Dependant Surveillance –

Broadcast (ADS-B) technology.

All the main improvements –

according to ATR, will provide

advantages and performance

improvements in terms of

weight reduction, reliability,

energy consumption and

durability. The new avionics

suite is developed by Thales

Avionics. Within the framework

of this contract, Thales

developed a flight deck that

would considerably simplify

work for pilots. Furthermore,

the ATR-600s are the first

regional aircraft to feature an

Avionics Full Duplex Switched

Ethernet (AFDX) network.

An example of the drive for

simplicity is the Electronic

Flight Bag (EFB). It is a touch-

screen display that is readable

in all light conditions and it is

used for the management of

in-flight and ground

information. EFB effectively

eliminates flight deck paper by

providing automated take-off

and landing calculations.

The -600 series is the

launch platform for the Pratt &

Whitney PW127 M engine. It is

the enhanced version of the

PW127 engine family already

installed on the -500s. The

engine upgrade supplies, on

demand, 5% higher

thermodynamic power for

operations in hot and high

airports. ATR now offers the

new engines on any ATR

42-500 or 72-500 that rolls off

its assembly lines. The PW127

M also improves the ATRs’

one-engine-out ceiling by

about 1,000 feet. On the

-600s, the extra power will

help raise payload weights to

address the demands of

increasing passenger and

baggage size.

An interesting feature of

ATRs is that they are not fitted

with an Auxiliary Power Unit

(APU) –a mini engine usually at

the rear of an aircraft used to

generate power while on the

ground. Instead, the ATRs are

equipped with a propeller

brake, commonly known as

“Hotel Mode” by pilots. The

system stops the propeller on

one engine, allowing the

turbine to run and provide air

and power to the aircraft

without the propeller spinning.

The Hotel Mode function

provides all the facilities and

benefits of an APU without the

cost of the added weight. ATR

calculations indicate that a

typical airline operation can

save about $24,000 per

aircraft annually by using a

propeller brake rather than an

APU; based on weight,

acquisition costs, fuel

consumption and

maintenance.

One of the challenges was

improving the interior design;

the current -500 series has

already been developed with a

number of nifty features and is

recognised for low interior

noise and vibration. ATR and

Italian design firm Giugiaro

developed the new Armonia

cabin for the -600s. It features

ergonomic and weight saving

seats, 30% wider overhead

bins, LED lighting and optional

three-abreast premium class

configuration with forward

passenger door. ATR indicates

that its engineers found a good

trade-off between bin volume

and headroom.

By the end of September 2011,

ATR recorded 145 firm orders and

72 options since the beginning

of the year. The company claims

to have gained 80% share of this

year’s regional aircraft market.

The value of these orders is

estimated at $4.8bn including

options. The ATR backlog is now

at 275 aircraft valued at $6.2bn

and represents nearly four years

of production.

The acquisition of the new

ATR 600s graphically illustrates

continuing investment by RAM

as it works to compete in a

liberalised market. In an attempt

to boost tourist arrivals by 1

million a year, Morocco initiated

an open skies agreement with

the EU in 2006. Local analysts

quickly expressed concerns

about the impact of increased

competition on RAM, especially

from the Low Cost Carriers (LCC).

The Centre for Aviation CAPA

shows that the LCC market in

Morocco doubled in the first year

of open skies from 10.9% in

2006 to 22.9% in 2007. RAM

Africa Wings24

News Briefs

New AppointmentsThe following are newly appointed

CEOs of some African Airlines:

• Mr. Bram Stellar has been

appointed new CEO of Air

Seychelles. He took over

from Mr. Maurice Loustau-

Lalanne who was the Executive

Chairman but remains the

Chairman of the Board of

Directors of Air Seychelles.

• Mrs. Maureen Dlamini, replaced

Mr. Wilfred L. Amstelveen as the

new CEO of Zambezi Airlines.

• Mrs. Sakhile reiling has been

appointed the General Manager

of Air Botswana.

Africa Wings would like to welcome

the new CEOs to their new positions

and wish them well.

We would also like to thank the

former CEOs of these airlines for

their support of their airlines and

the industry as a whole during their

tenure and wish them success in

their future endeavours.

Congo Launches ECAir with the Assistance of Lufthansa ConsultingEquatorial Congo Airlines (ECAir), the new national flag carrier of the Republic of Congo, entered into service

on 24 September 2011 with its premiere flight between the country’s capital Brazzaville and the port city of

Pointe Noire. Lufthansa Consulting managed the complete start-up process. In previous projects, Lufthansa

Consulting provided consultancy in supervising the concession project of the country’s three main airports

and in developing the conception of an 'Airport City' at the airport in Brazzaville named Maya Maya Village.

The airline start-up project now marks another milestone in the long-standing relationship between Lufthansa

Consulting and the Government of the Republic of Congo.

ECAir commenced operations with three daily flights on the Brazzaville Pointe-Noire route using a Boeing

737 -300, with a capacity of 120 seats, 12 Business and 108 Economy class seats. Lufthansa Consulting has

developed a comprehensive five year business plan including the future network and fleet structure for the

new airline. The consultants ensured adherence to international high quality and safety standards and also

created the carrier’s overall design concept. The CEO of ECAir is Mrs. Fatima Beyina-Moussa.

EgyptAir Launches New Flights to China EgyptAir Company introduced a new flight to Guangzhou

in October bringing its number of flights to China to five per

week. This decision was made in a strategy aiming to restore

rates of operation and to execute marketing programmes to

activate tourism in Egypt.

In another development, EgyptAir added an additional weekly

frequency to its service between Copenhagen and Cairo from

the launch of its winter programme. The expansion will benefit

business travellers as well as tourists since Egypt is making a

strong comeback as a tourist destination following last winter’s

unrest.

EgyptAir’s service between Copenhagen and Cairo has

been very successful in spite of last winter’s unrest in Egypt

and other parts of the Middle East, and the airline therefore

increases its capacity on the service by 25% by adding an extra

weekly frequency from the launch of its winter timetable.

Source: Copenhagen Airports.

Mrs. Fatima Beyina-Moussa, CEO ECAir.Photo: Lufthansa Consulting.

Ethiopian Airlines, Boeing Announce Order for Four 777 Freighters Ethiopian Airlines and Boeing announced an

order for four Boeing 777 Freighters, making

Ethiopia the first African carrier to order the twin-

engine freighter.

"The proven operational and economical

efficiency of these airplanes will reposition

Ethiopian Cargo in a stronger place to continue

winning in this hypercompetitive market," said

Tewolde Gebremariam, CEO of Ethiopian

Airlines.

In another development, Ethiopian Airlines

is working on deploying enhanced capacity

on the Mumbai and Delhi route, according to

Tekeba H. Selassie, regional director, Indian

subcontinent.

Ethiopian Cargo flights operate six times a

week from Mumbai and four times a week from

Chennai. Passenger services are seven times

a week from both Mumbai and Delhi. "In India,

the market formula is different from the rest of

the world. You can fill your capacity in the India

market if you come with peak capacity, multiple

routes and reasonable fares – one has to come

with a formula that suits the market,” he stated.

Source: expresstravelworld.


internal and governance

processes, while intensely

focusing on revamping our

product offering and providing

improved customer service, have

ensured that our airline is well

positioned for growth.”

Source: Businessday.

In other good news, South

African Airways proudly added

another award to an impressive

list of accolades for the year to

date, when it received first place

in the 2011 Sunday Times Top

Brands category for Domestic

Airline Consumer Metro. SAA in

June 2011 won two major awards

from Skytrax, the Best Airline

Africa Award and the Service

Excellence Africa Award. This is

the ninth consecutive year that

SAA has won the two awards.

In another development, South

African Airways will begin flying

to Ndola in Zambia from the

beginning of October 2011 and

will introduce routes to Burundi,

Rwanda and Benin later in the

year as it expands its African

routes.

Source: Travpr.com Nigeria

news briefsP

ho

to: A

fric

an-a

viat

ion

.

Arik Air Orders Two Boeing 747-8 In a bid to further boost options, Arik Air Nigeria and Boeing have

announced a deal for two 747-8 Intercontinental airplanes. The order

was announced during a signing ceremony at the Corporate Council for

Africa's 8th Biennial U.S.-Africa Business Summit in Washington, D.C

recently.

"Air travel within the region continues to grow at a rapid pace and

we must prepare our fleet to accommodate that growth", said Sir JIA

Arumemi-Johnson, owner and chairman of Arik Air. "Boeing's new 747-8

fits perfectly into our long-term planning. It brings the best operating

economics for its size, which is important with the increase in fuel

prices". Source: All Africa.

Air Namibia Upgrades its regional FleetAir Namibia has upgraded

its fleet by adding two New

Generation Airbus A319-100

aircraft, which entered service in

September 2011. In addition, two

more Airbus A319-100 aircraft

will replace the current Boeing

B737-500 aircraft by November

2012. The airline also introduced

SAA Group Net Profit up 77%South African Airways (SAA)

posted a turnaround 77%

increase in net profit to R782m

during the 2010-11 financial year,

largely on the back of cost-

cutting measures and improved

efficiencies, but high debt levels

remain a concern. The airline said

the positive performance was

achieved despite the fact that the

market was still recovering from

the effects of the global financial

crisis as well as fluctuating crude

oil prices.

SAA CEO, Mrs. Siza Mzimela

said: “Optimising the airline’s

New Airline Launch in Ghana Starbow has been launched as Ghana’s newest domestic airline,

using two BAE 146 passenger jets. Starbow commenced scheduled

commercial flights on September 26, following the delivery of its first

BAE 146 in July.

At the moment Starbow offers domestic flights between Kumasi and

Accra, but in the future it plans to offer direct services to the capitals of

neighbouring countries, including Burkina Faso, Ivory Coast, Liberia,

Mali, Niger, Nigeria and Sierra Leone.

At the end of the year another airline plans to launch in Ghana, with

the help of Chinese funding. Africa World Airlines acquired its operator

license from the Ghana Civil Aviation Authority earlier this year and

plans to begin flying with brand new Embraer ERJ-145 aircraft at the end

of the year. Source: defenceWeb.

Air Nigeria Takes Delivery of B737-400Air Nigeria has taken delivery of a Boeing 737-400 series aircraft in to

bring its current fleet to 11 in continuation of its drive to consolidate on its

regional and domestic route network.

The arrival of this aircraft to Air Nigeria’s rapidly growing fleet further

attests to the successes of the turnaround process initiated just over a

year ago by the airline’s new management under the Chairmanship of

Barrister Jimoh Ibrahim. Source: nigerianbuletin.

direct 'non-stop' flights between Lusaka and Windhoek every day of

the week, since 1 October 2011. The service will be operated using the

airline’s recently acquired Embraer ERJ 135 Regional Jets with seamless

connections via Windhoek to Cape Town, Johannesburg, Frankfurt and

Accra. Source: Air Namibia.

Photo: DEFENCEWEB.

Ph

oto

: Air

Nam

bia

.P

ho

to: N

iger

ian

Bu

lletin

.

Africa Wings26

news briefs

Photo:File.

Photo:File.

Kenya Airways Plans LCC Subsidiary Jambo JetKenya Airways is set to form a low-cost

subsidiary to handle its regional operations,

opening a new battlefront with budget operators

for control of the Eastern Africa routes. The rise

in passenger numbers within Eastern Africa,

coupled with the rising competition for control

of this market seem to be behind KQ’s decision

to establish a subsidiary for local and regional

flights. The airline’s Group MD and CEO. Dr.

Titus Naikuni said that the regional unit will have

a leaner costs structure compared to those of

international airlines-signalling a cost-saving

plan that will strengthen its hand in the ongoing

price war. “Jambo Jet is being formed and we are

still in the early stages of it,” said Dr. Naikuni.

Air Mauritius Extends Agreement with Traxon EuropeAir Mauritius has prolonged and augmented its agreement with Traxon Europe, the international

e-communications provider for the air cargo industry. The airline is now open to all markets and

customers for EDI messaging. The contract gives Air Mauritius access to the Traxon Europe

network world-wide and covers e-booking, air waybill data transfer, status information and

consolidation list (FHL) transmission for customs. The aim is a stable interchange of messages

between logistics partners and the air cargo carrier. With the new agreement Air Mauritius has

set the path for coming e-customs and e-freight requirements. Air Mauritius is fully supporting

IATA in the e-freight initiative. The Traxon network enables Air Mauritius to do business with all

logistics and industry partners on a single uniform platform. The EDI messaging services are

an integral part of Air Mauritius’ product offering and efforts to reduce paperwork and improve

cost efficiency and results. The airline and customers profit from faster and more streamlined

processes. Source: Air Transport News.


Precision Air touches base in Hahaya and JohannesburgPrecision Air have added Johannesburg and Hahaya, Comoros, to their expanding network. This has

been made possible by securing a second Boeing 737-300.

“This is indeed an exciting time for us and our customers who have been waiting for a long time for us

to start the Johannesburg route,” said Mr. Ibrahim Bukenya, Precision Air’s Country Manager in South

Africa.

“We will initially start with four flights a week on Wednesday, Friday, Saturday and Sunday and

eventually daily flights by December depending on the demand,” he added.

Passenger numbers on the Dar es Salaam – Johannesburg route have increased significantly with the

scrapping of the visa requirement between the two countries.

The departure and arrival times have been planned to ensure seamless connections to the rest of the

Precision Air network out of Dar es Salaam, as the departure from Johannesburg is 23.50, arriving at

04:20 in Dar es Salaam. The Johannesburg evening flight departs Dar es Salaam at 20.00 to cater for

the returning business and leisure traffic.

Precision Air joins South African Airways in offering a direct service on the busy Dar es Salaam

–Johannesburg route.

The airline’s service to Hahaya will provide a reliable link for both business customers and tourists

travelling to this beautiful holiday destination. The Airline believes this will give Comoros a significant

opportunity to further integrate itself into the East African Community, which is made possible by

Precision Air’s coverage to potential areas across the region.

Ato Girma Wake Wins Medal of Glory Award Former Chief Executive Officer (CEO)

of Ethiopia Airlines, Ato Girma Wake,

has won the 2011 Medal of Glory

Award (MOGA), by the Foundation for

Democracy in Africa (FDA). The highest

honour is awarded annually during

the Africando Trade and Investment

Symposium to ''exemplary leaders

for their extraordinary contributions to

economic,

social, cultural and agricultural

development and democracy in Africa''.

Mr. Wake was chosen for his lifelong

contributions to the development of civil

aviation in Africa, and globally; and for

linking markets and destinations within

Africa (intra-Africa), and connecting

Africa to international markets and

destinations. Source: Panapress.

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news briefs

Africa Wings28

One has to be able to deal with diverse trade

unions, some more militant than others.

The stories about strikes grounding airlines

around the continent by some key airline

people feature regularly in the press. The

question is whether such an industry is

welcoming to women or not. No clear answers

here, but it is to be noted that the industry is

changing rapidly. The above relates to the

typical legacy carriers. Low cost carriers are

introducing a new culture, making airline

business more like a commodity – one with

flexible working conditions, no or limited

unionisation, less hierarchical layers etc.

Perhaps that explains why there are more women CEOs in the low cost carriers with their much more progressive cultures.

We believe that prospects for more women

getting into the industry are bright. As carriers

change from thinking of themselves as being

in the airline business to being in the service

business where the customer is king, we

now see more young ladies than ever before

joining airlines. For example at EgyptAir Training

School, there are more women engineers than

men. As African aviation develops to catch up

with the rest of the world, we expect to witness

new, gender-blind airlines coming up. The

focus then would likely be on the capability,

expertise and attitude of the employee where

diversity is celebrated and encouraged.

Above from (left to Right):Mrs Marlene Manave CEO - LAM Mozambique

Fatima Beyina-Moussa CEO - ECAIRMrs Siza Mzimela CEO- SAA

Mrs Theo Namases Ag CEO - Air NamibiaMaureen Dlamini CEO - Zambezi Airlines

Mrs Shakile Reiling, CEO - of Air Botswana

Above from (left to Right):Above from Above from

Women CEOs in African Airlines

T he airline industry worldwide is typically

a boys’ club at the top. Pilots and

maintenance personnel are generally

men. Women traditionally are to be found

working as cabin attendants or check-in staff.

With the industry becoming more competitive,

where customer service and people

management skills are becoming critical, there

is a need for a shift in focus. Such structural

changes are opening doors to women in areas

traditionally dominated by men. Hence the

more innovative and people-oriented low cost

carriers have more women in all areas than the

legacy carriers.

Africa follows the global trend. However, the

Southern African region seems to be the one

region with most women in CEO positions in

Africa. For instance, there are five women CEOs

in the region. Siza Mzimela is CEO of

the largest airline on the continent, South

African Airways and the airline's Chairperson

of the Board is Ms. Cheryl Carolus. LAM

Mozambique Airlines is headed by Dr Marlene

Manave, who replaced the long serving Mr.

Ricardo Viegas earlier this year. In Namibia,

Mrs Theo Namases is at the helm of the airline

and Zambezi Airlines recently appointed Mrs.

Maureen Dlamini as the CEO. Air Malawi also

had a lady, Mrs Esther Chioko, who headed

the airline from 2004 to 2006. Air Botswana as

appointed Mrs. Shakile Reiling as CEO to lead

this growing airline. In the Central Africa region,

the newly created ECAir, the national carrier of

Congo, appointed Mrs. Fatima Beyina-Moussa

as the first CEO of the airline.

It is surprising that in the 21st century more than

50% of the entire population is largely excluded

from senior management roles or at board

level. The question is ‘why are other regions

of the African continent lagging so far behind

Southern Africa in employing women at the

top?’. Perhaps this issue needs further debates

in AFRAA forums.

Africa is no worse than the rest of the world in

excluding women from senior airline positions.

Europe has only six female airline CEOs of

which three head low cost carriers. Syrian

Arab Airlines in the Middle East is also headed

by a lady. There are no women CEOs in the

large carriers in the USA or Canada. In South

America, only Aerogal of Ecuador has a female

CEO although it is worth pointing out that the

Board of TAM in Brazil is headed by a woman,

a great achievement. The Asian region boasts

four airline female CEOs of which three head

low cost carriers.

In Africa, women also rarely feature at the next

level below CEO. Could it be that there are

more men at the top because of their networks

making it difficult for women to penetrate?

Do women make a difference to airline

fortunes? This is another area that merits study.

Suffice it to say that the presence of women

at the top changes the nature of deliberations

in boardrooms and senior management

meetings. However female presence is an

indication of a broader cultural change within

a company (or a country) that can enhance

the competitive capacity of the organisation

through introducing new talent.

Running an airline is highly complex. It requires

wide and deep expertise in a comprehensive

range of fields. One needs to be adept at

understanding the aero-political challenges

and working around them, have ability to

work with regulators, and demonstrate

expertise in fleet management and finance-

seeking, have revenue management and cost

management expertise, ability to instil a safety

culture, effectively manage maintenance,

flight and ground operations, know the right

information communication technologies to

adopt, dealing with a workforce as diverse as

pilots, maintenance people, cabin attendants,

marketing personnel and others, and

managing passenger ticket sales and cargo.



Grow with us.




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