Cheap African Airlines Struggle

by Developed Africa 26. July 2013 09:00

 

An article in the Economist last month highlighted the issues that many low-cost airlines in Africa have come across.

Whilst there is high demand for these low-cost flights, there is a high price to pay for the owners. Costs and taxes are high, forcing several airlines out of business. But there is such potential in these airlines to boost Africa's economy that these facts cannot be ignored and just put down to poor business skills or accounting. The problem here is that taxes on fuel are too high for them to provide these low-cost flights and to prosper at the same time, action needs to be taken by African governments if they want to see their economies flourish.

Tony Tyler from the International Air Transport Association said this:

Nowhere is the potential for aviation greater than on the African continent”

And the ITATA are asking the African governments to make the changes that will allow not only these airlines to grow, but for the economy to grow too.

just as liberalisation paved the way for the spread of mobile phones in Africa, similar reforms are now needed if aviation is to reach its full potential."

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