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AFRAA Annual Report 2019

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AFRAA Annual Report 2019 IRLINES ASS A PAGNIES O OM AERI C 20N S C EN 19 E N I A D ES A N A T C IO F I T R I I O R IA C C A I N F O N S E S A S A ANNUAL AFRAA REPORT Amadeus Airline Platform Bringing SIMPLICITY to airlines You can follow us on: AmadeusITGroup amadeus.com/airlineplatform AFRAA Executive Committee (EXC) Members 2019 AIR MAURITIUS (MK) RWANDAIR (WB) PRESIDENT OF AFRAA CHAIRPERSON OF THE EXECUTIVE COMMITTEE Mr. Somas Appavou Ms. Yvonne Makolo Chief Executive Officer Chief Executive Officer CONGO AIRWAYS (8Z) KENYA AIRWAYS (KQ) CAMAIR-CO (QC) Mr. Desire Balazire Esono Mr. Sebastian Mikosz Mr. Louis Roger Njipendi Kouotou 1st Vice Chairman of the EXC 2nd Vice Chairman of the EXC Chief Executive Officer Chief Executive Officer Chief Executive Officer ROYAL AIR MAROC (AT) EGYPTAIR (MS) TUNISAIR (TU) Mr. Abdelhamid Addou Capt. Ahmed Adel Mr. Ilyes Mnakbi Chief Executive Officer Chairman & Chief Executive Officer Chief Executive Officer ETHIOPIAN AIRLINES (ET) AIR ZIMBABWE (UM) AIR NAMIBIA (SW) MAURITANIA AIRLINES (L6) Mr. Tewolde GebreMariam Mr. Joseph Makonise Mr. Xavier Masule Mrs. Amal Mint Maoulod Chief Executive Officer Chief Executive Officer Chief Executive Officer Chief Executive Officer ANNUAL REPORT 2019 I Foreword raffic growth in Africa has been consistently increasing since 2011. The demand for air passenger services remained strong in 2018 with a 6.9% year Ton year growth. Those good results were supported by the good global economic environment particularly in the first half of the year. Unlike passenger traffic, air freight demand recorded a very weak performance in 2018 compared to 2017. This was attributed to a number of threats including slowdown in world trade during the second part of the year. Africa’s travel and tourism industry has continued to record impressive growth since 2016. UNWTO reported a 7% increase in international arrivals in Africa for the year 2018, reaching an estimated number of 67 million. This represents 4.8% of the world total number of international tourists. These results were driven by the continued recovery in North Africa and the solid growth in many destinations. While travel and tourism rate of 6.80 for the previous five years. Africa was competitiveness has improved it generally lags behind the only region to see an improvement in the the global average. all-accident rate compared to 2017. In terms of capacity, the average Passenger Load Factor World-class safety standards are a prerequisite for recorded in Africa for 2018 was 71.5%, an increase African aviation industry to thrive. Africa has seen from the 70.4% recorded in 2017. This is 10% less than remarkable improvements in safety in the recent years the 81.9% realised worldwide. This low performance which need to be kept up to avoid complacency. in terms of load factor in Africa may be explained by AFRAA encompasses initiatives to support more the mismatch between capacity and demand, the African airlines to get the IATA Operational limited commercial cooperation between local carriers, Safety Audit (IOSA) and the IATA Standard Safety the limited connectivity and uncoordinated intra- Assessment (ISSA). AFRAA is also dedicated to African networks with other African operators. work with African governments to accelerate the Air transport in Africa supports 6.2 million jobs and $55.8 implementation of ICAO’s safety-related standards billion of GDP and is expected to grow at a rate of 4.6% and recommended practices (SARPS). annually for the next 20 years. This growth in traffic is Among AFRAA’s priorities highlighted in section nine being matched by route expansion by African airlines. of this report are initiatives to enhance cooperation AFRAA airlines in 2018 expanded their networks on among African airlines, address airline cost drivers, both intra-Africa and intercontinental routes. A total of particularly taxes and user charges, raise safety and 23 new routes were launched by 6 AFRAA member security levels to the global average, ensure there is airlines to domestic, intra-Africa and intercontinental sufficient infrastructure and skilled staff to support destinations. Of these, 14 destinations were inter- the traffic growth in the continent. AFRAA is also continental while 9 new routes were within the continent. working with other stakeholders in the pursuit of a Africa’s remarkable growth opportunity will be greatly cost effective operating environment for sustainable unlocked through regional integration in the continent. aviation in Africa, the enhancement of intra-Africa The Single Africa Air Transport Market (SAATM), the connectivity and a more business friendly harmonised African Continental Free Trade Agreement (ACFTA) regulatory framework. and the Free Movement Protocol for people and goods This report provides a comprehensive review of are the African Union’s flagship projects which are the state of the African air transport industry, the expected to enhance intra-Africa connectivity, thereby prospects for the future and provides a snapshot of facilitating travel, trade, tourism, business and socio- AFRAA’s activities for the development of aviation economic development across the continent. in Africa. The report also provides databases of The industry has seen an upward trend in capital aviation training institutions, maintenance, repair productivity over the past few years and for the third and overhaul (MRO) centres as well as summaries consecutive year, the industry’s return on capital of AFRAA partners. The airlines’ profiles section exceeded its cost of capital. The industry’s profit provides facts and figures on all AFRAA member represented US$ 6.85 average profit per passenger airlines. in 2018 while Africa was the weakest region with an I hope this Annual Report will be a good reference estimated US$ 1.09 loss per passenger in 2018. for you on African airlines performance. As such, On safety, the global safety performance of the I wish you a good reading. commercial airline industry shows progressive safety improvements; however, 2018 recorded an increase in accidents compared to 2017. For 2016 and 2017, African airlines experienced zero jet hull losses and zero fatalities in jet operations. For 2018 however, Africa recorded a fatal accident rate of 1.08 (per million departures). The all-accident rate for the continent Mr. Abdérahmane Berthé in 2018 was 2.71, a significant improvement over the AFRAA Secretary General ANNUAL REPORT 2019 II LINES A IR SSO A MPAGNIES AER CO IEN C N ES N I A D ES A N A T C IO F I T R I I O R IA C C A I N F O N S E S A S A AFRAA Vision “A sustainable, interconnected and affordable Air Transport industry in Africa where African airlines become key players and drivers to African economic development.” Mission “To promote, serve African airlines and champion Africa’s aviation industry.” Values AFRAA believes in: Professionalism Integrity Leadership Communication Commitment to serve Partnerships Transparency Result orientation Objectives AFRAA as an association has the following strategic objectives: Safe, secure and reliable air transport; Promote the industry best practices to support safe, secure and reliable air transport in Africa. Enhance the visibility, reputation and influence of African airlines in the global Aviation industry; Sustainable air transport; Advocate for the reduction of costs of air transport services in Africa by reducing taxes, fees and charges. Strive for the implementation of cost-effective Human Resource Development. Lobby for market access to increase revenues and enhance connectivity for the aviation sector in Africa. Cooperation Undertake the implementation of joint initiatives aimed at reducing operating costs for airlines, increase revenues and market share. Facilitate and encourage partnership among African airlines. Data intelligence Become a hub for data, intelligence and expertise on the African Aviation Industry. Table of Contents Section One Economic performance 1 Section Two Airline performance 4 Section Three Freight 13 Section Four Financial performance 15 Section Five Airports statistics 18 Section Six Fleet 20 Section Seven Employee productivity 22 Section Eight Safety 24 Section Nine AFRAA Secretariat Value Adding Activities 26 Section Ten FAA or EASA Certified African MROs 30 Section Eleven FAA or EASA Certified Training Centres 31 Section Twelve Airlines with Aircraft Simulators 32 Section Thirteen AFRAA Airlines – Individual Summary Facts 33 Section Fourteen AFRAA Partners – profiles and contacts 48 Annexes Annex 1: AFRAA Member airlines performance 63 Annex 2: AFRAA Member airlines fleet – 2019 64 Annex 3: AFRAA Member airlines commercial partnerships – 2019 65 Appreciation AFRAA wishes to express heartfelt appreciation to all industry associations and members who contributed to the publication of this report by responding to our requests for data and to Amadeus for their sponsorship towards the report’s publication. AFRAA looks forward to your valuable support towards the preparation of this annual publication. It is the Association’s belief that airlines, partners and other stakeholders will find the content of this report useful and informative. Your feedback and comments are highly appreciated. ANNUAL REPORT 2019 IV List of Figures Figure 1.1 Global economic growth 1 Figure 1.2 Real GDP growth in Africa, 2010-20 2 Figure 1.3 Real GDP growth by sub-regions of Africa, 2010-20 3 Figure 1.4 International tourist arrival 3 Figure 2.1 Worldwide RPK growth and GDP growth 4 Figure 2.2 World scheduled RPKs 2017-2018 (billion) 4 Figure 2.3 Industry
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