Tasew: Why African airlines are not flourishing, defends JVs with carriers, nations

…Jet fuel hike, taxes, Forex scarcity, poor infrastructure frustrate carriers

Wole Shadare, Addis Ababa, Ethiopia

The Group Managing Director of Ethiopian Airlines, Mesfin Tasew has attributed the precarious situation of many airlines in Africa to the lack of a conducive environment for the continent’s carriers to flourish.

Tasew at a panel discussion moderated by the convener of the summit and the Chief Executive Officer of African Aviation Services Limited, Mr. Nick Fadugba at the ongoing African Aviation MRO Africa in Addis Ababa, Ethiopia with the theme, “Strengthening Africa’s MRO and Training Capacity for the Future,” equally attributed the failure and the under-performance of the continent’s airlines to the high cost of operations, high taxes, difficulty in accessing Forex to buy spare parts, high price of jet fuel among others that have done incalculable damage to them.

He equally took a swipe at the manner some African nations protect their carriers when they are signatories to the Single African Air Transport Market (SAATM) which liberalises air transport in the continent and helps to ease travel connections within the region.

His words, “There is no conducive environment for airlines to flourish and grow. The cost of operation in Africa is very high; high taxes and very low level of infrastructure and a lack of access to Forex. That is the reason Nigerian airlines complained to the government to assist them access Forex to buy spare parts.”

“Jet fuel prices have to be reasonable. The airline business needs strong leadership to control its costs. I don’t see that consciousness among African airlines’ leadership. Cooperation would help African airlines to grow.”

He defended accusations levelled against his airline for entering into a partnership to dominate or have a comparative advantage over the carrier it had a JV with.

His words, “When we go to another country for JV, we are accused of dominating the country’s aviation. We have a JV with ASKY, have we gone to dominate them in Togo?

In a tacit response to Nigeria, he said, “My advice to you is that we are ready to help you to become an independent airline and nurture you to grow. Don’t think Ethiopian Airlines is here to exploit you. We make sure they have the right number of skilled professionals. ASKY is independent and it is willing to create a Maintenance Repair Overhaul (MRO) in Lome, Togo”.

He explained that the MRO when ready will serve the West and Central African market that lacks functional aircraft repair facilities, stressing that Ethiopian Airlines is helping to develop human capacity for the training of technicians.

The Federal Government had entered into a partnership with Ethiopian Airlines with plans to create a national carrier to be christened Nigeria which remains suspended after the dome airline operators sought a court injunction to stop the deal.

The Ethiopian Airlines chief however described the protests that greeted the deal as more ‘political than business, hinting that they had to suspend the deal.

“In Nigeria, the business environment was a challenge but we took up the challenge. A group of Nigerian airlines took Nigeria Air’s case to court and we did not have any other choice than to suspend the project. Our strategy is to partner with African airlines to contribute to Africa’s aviation development. We have a partnership with ASKY and South African Airways. ASKY is founded on solid ground with robust leadership. Its operating environment is good.”

Fadugba said the continent needs safe, reliable and affordable air transportation to facilitate trade, saying there is a need for more cooperation between African carriers to grow the manpower needed for the sector’s growth.

Wole Shadare