Agence Ecofin TikTok Agence Ecofin Youtube Agence WhatsApp

Public Management

Sahel Nations Aim for National Airlines Despite High Costs

Monday, 18 November 2024 16:08
Sahel Nations Aim for National Airlines Despite High Costs

(Ecofin Agency) - Having a national airline is seen as a symbol of sovereignty, but the idea of every African country running its own raises serious doubts about whether it can work.

Since the Sahel Alliance (AES) was created in September 2023, Mali, Burkina Faso, and Niger have focused on improving air travel between their countries. Initially, they planned to launch one airline to serve all three nations. However, each country is now moving forward with its own airline instead. 

Burkina Faso has already revived its national airline, Air Burkina, which had been grounded until September. The government invested in a new Embraer 190 aircraft to bring the airline back into service. Flights resumed on October 2. 

Mali has followed this example and fast-tracked the launch of its own carrier, Mali Airlines. On November 14, the government approved plans for its creation. Mali hopes the airline will improve access to remote regions and reduce reliance on roads, which are often dangerous due to security issues.

These developments highlight a common trend in Africa, where many countries choose to operate their own airlines despite the financial and operational challenges. West Africa already has a large number of airlines. These include regional carriers like Asky (Togo), Air Côte d’Ivoire, Air Sénégal, and Air Peace (Nigeria). Larger international airlines, such as Ethiopian Airlines, Air France, Turkish Airlines, Royal Air Maroc, Emirates, and even Delta Airlines, also compete for market share in the region. 

Some countries are introducing new national airlines, further adding to the competition. For example, Ghana, Benin, Nigeria, and Sierra Leone are all working on launching new carriers, joining the Sahel Alliance nations in this effort. 

Despite the enthusiasm for national airlines, the business model has proven difficult to sustain for many African countries. Airlines such as Air Côte d’Ivoire, Kenya Airways, South African Airways, and Air Algérie frequently depend on government funding to survive. These funds are used to cover debts, strengthen cash flow, and expand fleets. 

Critics argue that this approach is not sustainable. Allan Kilavuka, CEO of Kenya Airways, has pointed out that having too many small airlines leads to high operating costs in Africa. He suggests merging airlines to share resources and create regional carriers that are more efficient and competitive. 

Still, many governments view having a national airline as a matter of pride and sovereignty. While the financial risks are significant, the dream of owning an airline remains strong across the continent.

Additional Info

  • communiques: Non
  • couleur: N/A
 
Finance


 
Mining


 
Telecom



ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

AGENCE ECOFIN
Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

EDITORIAL TEAM
redaction@agenceecofin.com

ADVERTISING SALES
Benjamin FLAUX
bf@agenceecofin.com
Tél: +41 22 301 96 11
Mob: +41 78 699 13 72

 

Please publish modules in offcanvas position.