Restrictive market, bane of African carriers, says Walsh

…”Africa can be exporter of SAF”

The Director-General of the International Air Transport Association (IATA) Willie Walsh has zeroed in on African airlines and insisted that their major single problem is that they operate in very small economies, rather than in Europe where an airline from one country can fly anywhere in the same region.

Operating in bigger economies, he reiterated would help the carriers to spread their overhead costs across a much bigger market and ensure consumers would benefit significantly from greater services and also enable airlines to expand faster if they are operating in a bigger collective market. 

This is coming as he disclosed that Africa has the opportunity to develop significant levels of renewable energy, particularly, Sustainable Aviation Fuel (SAF), an alternative fuel made from non-petroleum feedstocks that reduces emissions from air transportation with a 2050 target for the world to embrace but noted that it’s going to require investment.  

SAF can be blended at different levels with limits between 10% and 50%, depending on the feedstock and how the fuel is produced.

Speaking to Aviation Metric recently in Dubai, the United Arab Emirates (UAE), Walsh said, “And I think it will happen because we have been debating the single market in Africa for years. Everybody believes in it, but everybody’s afraid to implement it because there is always the fear that this is going to impact negatively on me.”

“Therefore, I’d like to do it, but I am afraid to do it. I think ultimately for Africa to achieve its full potential, it will have to embrace a single market or at least, a collection of markets that is bigger than exists today where, you know, trying to compete with small individual economies is just incredibly difficult for an airline.”

“I don’t think African carriers have anything to fear, based on the experience in Europe, I don’t think they have anything to fear. I think it will be hard, but it’s much more weighted to the opportunity than to the risk.”

The IATA DG noted that Africa has incredible potential to be a big player in the global airline business but lamented that it can’t make any headway with only 2% of global aviation, explaining, “When you look at opportunities in the world, Africa has to be seen as an opportunity. With only 2% of global aviation, it was 2% of global aviation in 2000. It was 2% in 2010. It was 2% in 2024. I think the opportunity in Africa is huge, but it is going to have to change.”

He further hinted that the continent would benefit from a Single African Air Transport Market (SAATM) in the same way as Europe, the US and other parts of the world have benefited from that.

The SAATM is a project of the African Union (AU) to create a single market for air transport in Africa. Once completely in force, the single market is supposed to allow significant freedom of air transport in Africa,

Walsh said he was of the view that Africa can meet the Sustainable Aviation Fuel (SAF) target by 2050 the way everybody is determined although everybody is frightened by the challenge, they recognise that they have to achieve it.

“You now have other opportunities to create a fuel that is in huge demand. And we have multiple feedstocks that are available. Africa has the opportunity to develop significant levels of renewable energy. Now, yes, it’s going to require investment. And this is the issue. Where do you invest to ensure longer-term returns? But I think Africa has a huge opportunity when it comes to SAF. Africa could be an exporter of SAF to the world, given the resources that it has available.”

“I know from speaking to the leaders of African carriers that they understand that for them to play their role, they are going to have to get to net zero in 2050 as well. But it is going to be challenging for everybody.

“It is not just a challenge for African carriers. It is a challenge for every airline. But, you know, the general assessment and the general position of the industry is it’s something we have to achieve, and we will achieve.”

Wole Shadare