EU fears double-dip recession in Eurozone
MOST African countries are yet to have viable aviation sectors due to lack of functioning aircraft and durable policies.
Aviation experts, who ended a conference on how to improve safety in the industry yesterday in Nairobi, Kenya, said the sector would only attract more investors and passengers' patronage when problems such as poor infrastructure, loss of qualified personnel through emigration, bureaucracy, and high operating costs, are addressed.
Delegates to the 21st yearly African Aviation Conference and Exhibition, with theme: "Enhancing air safety through cost-effective aircraft maintenance (MRO Africa)," were drawn from the continent, Europe, the United States (U.S.) and Asia.
Among the chief speakers at the event were Nigeria's Nick Fadugba and Vytautus Vorobjova. Meanwhile, the European Union (EU) has said the debt crisis in the region could drag the Eurozone into a long-warned double-dip recession this year, pulling down most neighbouring non-Euro economies in its wake.
Fresh after a decision to mount a new 237-billion-euro ($310 billion) bail-out of Greece, there was more bad news for the currency area when updated EU data predicted a 0.3-per cent contraction in Gross Domestic Product (GDP) throughout 2012, compared with a forecast in November of 0.5-per cent growth for this year.
Speaking on lack of robust policy formulation by African leaders, Fadugba, a former Secretary-General of African Airlines Association (AFRAA), the umbrella body for the continent's airlines, lamented that "many African governments have almost given up on their national airlines because they don't bring in sufficient tourists to boost the economy and have become a financial burden to the state.
He stated that unlike their African airline counterparts, many of the continent's airports seeking funds to modernise their infrastructure regard the influx of foreign airlines into the region as a revenue opportunity, rather than a threat. .
To him, the challenges ahead remain daunting, noting that what is required to survive and prosper was strong leadership, commitment and a clear vision.
Fadugba lamented the small fleet size of African carriers, adding that 75 per cent of the continent airlines have less than six aircraft in their fleet; a figure, he said, was small to compete with the likes of Delta Air with over 500 airplanes, British Airways, Air France-KLM, with combined fleet of over 700 aircraft.
He said: "For 22 years, no airline in Africa has provided more inspiration to the continent than Ethiopian Airlines. Some attribute the success of Ethiopian Airways to the fact that it enjoys a monopoly in its home market. But we believe the true reasons are more profound. Visionary Ethiopian has achieved so much with so little."
On the benefits of e-commerce for the African aviation industry, Vorobjova, a leading international aircraft parts supplier, said all the listed issues need to be properly addressed for the region to realise its full aviation potential.
He stated that the increasing domination of African long-haul routes by carriers from Europe, the Middle East and the United States might slow down growth in the continent, stressing that under-developed domestic and intra-African routes provide great scope for network expansion.
The European Commission said yesterday that "the unexpected stalling of the recovery in late 2011 is set to extend into the first two quarters of 2012."
The commission, according to Associated Press (AP), said negative loops "between weak sovereign debtors, fragile financial markets and a slowing real economy do not yet appear to have been broken."
A 0.8-per cent downward revision in the space of just over three months underlined the importance of forecasting for the likes of Greece, where wide variations were presented to finance ministers this week as they took decisions on long-term debt sustainability in that country.
The Guardian