African Skies Issue No. 54

African-skies

Decarbonisation pathway to net zero emissions

Success in mitigating net emissions will require the coordinated combined efforts of the entire aviation industry plus significant government support

Championing regional safety coordination

Safety is one of the priority strategic objectives of AFRAA

The implications of Acadustry® in African Aviation

For the benefits of acadustry to be harnessed to its fullest, the notion of Continuous Professional Development (CPD) needs to be inculcated into the mindset of leaders

Embraer forecasts global demand

Embraer foresees world demand for 11,000 new up-to-150-seat aircraft over the next 20 years with a market value of USD 650 billion

AFRAA’s Panafrican Journal on Air Transport, Issue No. 54 : November 2023

FEATURES

04

55th AGA takes Strides to Transform Aviation for Development

AFRAA intends to play a pivotal role in navigating African airlines by charting a sustainable path in support of rejuvenating the continent’s aviation industry through specific support measures.

08

The journey to sustainable aviation

The air transport industry is not short of promises to dramatically reduce its carbon footprint.

12

Decarbonisation pathway to net zero emissions

Success in mitigating net emissions will require the coordinated combined efforts of the entire aviation industry plus significant government support.

17

Championing regional safety coordination

Safety is one of the priority strategic objectives of AFRAA. That is one of the reasons why AFRAA is championing the regional safety coordination for Better Skies in Africa.

22

Embraer forecasts global demand

Embraer foresees world demand for 11,000 new up-to-150-seat aircraft over the next 20 years with a market value of USD 650 billion.

26

New world of revenue optimisation and dynamic pricing

While the most turbulent time for the airline industry is ending, all airline leaders will recognise the need for a more accurate financial forecast and revenue uplift.

30

The implications of Acadustry® in African Aviation

For the benefits of acadustry to be harnessed to its fullest, the notion of Continuous Professional Development (CPD) needs to be inculcated into the mindset of leaders within the African Aviation community.

32

Unlocking Africa’s full potential

For economies to grow and a free trade area to work, governments need to balance protecting their countries from trafficking, terrorism, pandemics, and crime while making it easier to move people and goods across their borders.

36

Women in Africa’s services trade

The success of the AfCFTA depends on its inclusive nature and the way the enormous opportunities for women’s participation in the free trade area can be enabled.

https://www.linkedin.com/company/african-airlines-association/ www.afraa.org

Customer experience

Customers are looking to technology to optimise every aspect of the post-pandemic travel landscape, from addressing pain points in the airport journey, to supporting air transport sustainability, to streamlining intermodal travel. 43

AFRAA diary: Timeline of activities

PUBLISHERS

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Sam Kimani

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Rachel Musyoni

ADMINISTRATION | ADVERTISING

Azra Chaudhry (UK)

Rose Judha (Kenya)

African-skies is published quarterly for AFRAA by Camerapix Magazines Limited

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The 55th AFRAA Annual General Assembly takes Strides to Transform Aviation for Development

19-21 November 2023, Kampala, Republic of Uganda – The African Airlines Association (AFRAA) and Uganda Airlines concluded the 55th Annual General Assembly (AGA) in Kampala, Uganda. The event was held under the High patronage of the Government of Uganda and officiated by H.E Jessica Rose Epel Alupo, Vice President of the Republic of Uganda.

The Assembly, which brought together 569 delegates from 49 countries under the theme ‘Strides to Transform Aviation for Development’, challenged African airlines and air transport stakeholders with new thinking on initiatives and strategies that will drive the sustainability of the air transport sector to realise its potential. Among others, the Assembly

recommendations were made on the following key areas:

i. The Transformational value of the Single African Air Transport Market (SAATM) to African airlines;

ii. Collaborative and effective attainment of the Aviation Net Zero Roadmap;

iii. Innovation initiatives in Africa for sustainable aviation in the continent;

iv. Synergies for the development of intra-Africa tourism and air travel;

v. Gender diversity and inclusivity actions to shape the future of aviation in Africa.

H.E Jessica Rose Epel Alupo – the Chief Guest, in her opening address, highlighted that Air Transport as the business of freedom, is a critical enabler of economic

and social integration which Africa cannot do without because the rail and road infrastructure lack due coverage for interstate movement. “As Africa pursues the goal of continental integration, it will be important to focus on growing Air transport for ease of intra-Africa connectivity.” She stated.

“Air connectivity has become central to our development agenda, and the national carrier is seen as an extension of national infrastructure. We are committed to investing in the flag carrier and to facilitate the airline’s expansion within Africa, while also providing those vital air bridges between the continent and the rest of the world. For that reason, we are proactive in driving Africa’s integration agenda and committed to removing any obstacles that might obstruct this goal in way.”

facing the air transport industry, to support the post-COVID resumption and foster a resilient Air Transport system in Africa. “As our industry has almost recovered from the COVID-19 pandemic, it provides an opportunity for cooperation and collaboration to develop a sustainable perspective for the airline industry. At AFRAA, we will keep our mission to promote and serve African airlines and champion Africa’s aviation industry.” he stated.

‘Better Skies for Africa remains the pillar of all our actions.’ Mr. Berthé concluded.

Appointment of Officers

H.E Jessica Rose Epel Alupo added.

In her welcome address, Ms. Jennifer Bamuturaki, the 2023 President of AFRAA and CEO of Uganda Airlines took stock of the priorities for African air transport during the period of her Presidency of the Association, notably on: smart regulation to support liberalisation and intra-Africa connectivity, pathways for increased partnerships and collaboration within the continent and promotion of sustainable operations of African airlines. She noted the positive traction on initiatives to open up the continent’s aviation and improve connectivity. “At least twothirds of African states have signed up to SAATM and are at different stages of implementation. Here in Uganda, internal conversations about joining SAATM have started.” she stated.

Mr. Abdérahmane Berthé, AFRAA Secretary General, expressed commitment and determination of AFRAA to overcome the challenges

The 55th AFRAA AGA elected LAM Mozambique as the Chairman of the Executive Committee while Kenya Airways was elected as first Vice Chairman and Tunisair as second Vice Chairman. The AFRAA Executive Committee has oversight responsibility for the Association.

Host of the 56th AGA

The 55th AFRAA AGA elected EgyptAir as the President of the Association. EgyptAir will host the 56th AGA in Egypt from in November 2024.

AFRAA CEOs retreat

As part of the pre-AGA activities, AFRAA staged the first-ever AFRAA CEOs retreat on 19 November 2023. The CEOs retreat is an initiative recommended by the AFRAA Executive Committee to bring together member airline Leadership Teams to brainstorm on the Association’s priorities, work plan, projects and specific dynamics of the air transport industry that will enhance the Association to play its critical role in the industry. The CEOs retreat which will be held on an annual basis, made recommendations for AFRAA on: safety, intra-African connectivity and route development, sustainability of African airlines and AFRAA joint projects.

New members and partners

The Association welcomed the following new Members that joined in 2023:

• Eswatini Air (Associate Membership)

• Ibom Airlines (Full Membership)

• MedSky Airways (Associate Membership)

• Zambia Airways Ltd (Associate Membership)

• Airlink (Pty) Limited (Full Membership)

• Chapman Freeborn Airchartering Ltd –(Full Partnership)

• TP Connects (Full Partnership)

Highlights from the Secretary General’s State of the Industry report

Airline performance: The average Passenger Load Factor recorded in Africa for 2022 was 71.6%, a 10.6% increase compared to 2021. However, this is 7% less than the global average. The mismatch between capacity and demand and the limited commercial cooperation between local carriers may explain this low performance in terms of load factor in Africa.

In terms of passengers carried, during the 3rd quarter of 2023, African airlines reached the number of RPKs for the same period in 2019. AFRAA estimates the number of passengers in 2023 to be 85 million, 89% of the 95.6 million in 2019. Notably, in 2023, Northern Africa accounts for 39.5% of the total African traffic, followed by Central and West Africa at 21.7%, Southern Africa at 19.4% and Eastern Africa at 19.3.

On cargo, according to World ACD, African airlines represent an average of 30.6% in terms of cargo market share in 2023.

AFRAA estimates the revenue loss for 2022 at USD 3.5 billion, representing 20% of 2019 revenues. This will narrow down to USD 1 billion in 2023.

Jet fuel prices: Jet fuel prices are rising, reaching $123.46 as at the end of October 2023. This trend of high fuel costs impacts fares and hinders air transport affordability for African citizens.

Safety: Promoting and enhancing safety is one of AFRAA’s priorities through

collaboration. AFRAA and industry stakeholders are working towards improving safety standards in our continent. AFRAA is currently running with IATA and AFCAC a 3-year project, which aims to identify eligible airlines, conduct gap analyses, and recommend corrective actions to prepare those airlines for IOSA or ISSA certifications.

AFRAA priorities for 2024:

1. Safety first

2. Connectivity and route development

3. Air Transport sustainability

4. AFRAA 5-Year Strategic Plan

“The African continent must focus on aviation as a critical socio-economic development driver.

Cooperation, Collaboration and joint industry actions are essential in this process. AFRAA intends to play a pivotal role in navigating African airlines by charting a sustainable path in support of rejuvenating the continent’s aviation industry through specific support measures.” Mr. Berthé emphasised.

AFRAA Officers:

• President: EgyptAir

• Chairman: LAM Mozambique

• 1st Vice Chairman: Kenya Airways

• 2nd Vice Chairman: Tunisair

AFRAA Executive Committee for 2024

WEST AND CENTRAL REGION

NORTHERN REGION

EASTERN REGION

Members of the Executive Committee in their capacity of members of the IATA Board of Governors (BOG) up to their term of office on the IATA BOG

The journey to sustainable aviation

Tom Fadden

Global Head of Aviation at Allianz Global Corporate & Specialty

The aviation sector has pledged, like most, to reach Net Zero by 2050. From the International Air Transport Association (IATA) commitment to ‘Fly Net Zero’ to the declaration from the International Aviation Climate Ambition Coalition at COP 26, the air transport industry is not short of promises to dramatically reduce its carbon footprint. Compared with some other sectors, aviation is a relatively small contributor to global greenhouse emissions – in 2019 it was estimated to account for around 2.5% of the world’s CO2 emissions. However, it is also one of the fastest growing, and there is little doubt that every major airline and aerospace manufacturer in the world now has its environmental impact front and centre, a topic that is not creeping but is vertiginously ascending the corporate priority ladder. But what does the flight path to a more sustainable future look like for the industry? And how realistic are the lofty goals that have been set? The first, and most obvious, conclusion is that there is no silver bullet. Potential solutions abound (more on those below), but there is no answer likely to single-handedly push aviation to net zero. The second, is that pressure groups and activists aside, intermediate decarbonisation goals are linked to commercial aims – stating the obvious, the more efficiently an aircraft burns fuel the better for all concerned. Longer term, however, the aviation industry may need assistance from both its insurance, and other financial, partners in de-risking the transition as the costs associated

with change are a significant, but not insurmountable, barrier to progress.

Clearing the runway for Sustainable Aviation Fuels (SAFs)

The sector certainly abounds with initiatives to aid the transition. The first likely to have a tangible effect is Sustainable Aviation Fuels (SAFs), with many airlines looking to increase their usage (10% is a commonly selected target). As part of the ‘Fit for 55’ package, which sets out an initial target of a reduction in emissions by 55% in 2030 (compared with the level of 1990), the EU will require every flight leaving its airports to carry a minimum amount of SAF (2% in 2025 and 5% by 2030). Meanwhile, the US wants to increase the production of SAFs to three billion gallons per year by 2030. While these commitments and progress is welcome, the production of these alternative fuels remains small. SAFs can be split into three buckets –those recycled from waste products (for example, from used cooking oil), those created directly from crops, and synthetic fuels (created by processing recovered carbon dioxide with green electricity). With the commercial aviation world requiring approximately 95 billion gallons of traditional kerosene aviation fuel in 2019, according to IATA, the recycled or grown SAFs suffer from a lack of available resources (short of diverting all global agriculture towards the endeavour) while large scale production of synthetic fuels will require cheap, high volume green electricity.

The price of SAFs is double that of fossil fuels price today, so the dramatic ramp up of SAF production will require

significant capital expenditure and initially government incentives are likely to be required to offset the price premium. It will be worth the time, cost and effort. SAFs can result in an 80% reduction of lifecycle emissions (as the only true emissions come from processing steps). The technology is proven and certified (having already been used on over 200,000 flights) and no changes are required to existing aircraft – SAFs can be used interchangeably with kerosene. There is also a key role for insurers to play in helping their clients de-risk the transition to SAFs – supporting the construction of new infrastructure and the adoption of different fuels. For example, insuring the construction of SAF manufacturing facilities, or the installation of SAF refueling infrastructure at airports. Insurers may even be able to assist their clients with hedging to allow airlines to protect themselves against SAF price fluctuation in future.

Ready for take-off? Electric and hybrid aircraft

While SAFs will be the short- to mediumterm workhorse, perhaps the more

exciting future developments are the new air travel technologies that remain nascent but capture the imagination more than a simple fuel switch. The electric aircraft revolution is firmly underway with more than 200 global companies developing concepts. Several have even completed test flights and the appeal is obvious: electric aircraft have no climate impact during operations. They are a thrilling proposition.

However, the biggest issue remains technological maturity – in particular battery density and the associated range. Batteries will need to be at least five times denser than current lithium-ion batteries and it is not currently thought that true electric aircraft will ever have a range greater than 500 to 1,000 kilometres –although it is estimated that half of all global flights are shorter than 500 miles. They also remain relatively far off with 2040 probably a realistic date for entry into service. There will also be an arduous process of certification of such new types of aircraft, with regulators (quite rightly) needing to know that the new technology

is safe before allowing consumer usage –more on this below.

So what for long haul? The answer may rest with hybrid aircraft. A concept familiar with road vehicles, but likely to be a blend of electric technology and hydrogen propulsion rather than involving traditional fossil fuels. This is certainly the approach being taken by Airbus, which hopes to develop the world’s first zero emission aircraft by 2035, with its three ZEROe concepts. The aircraft are powered by hydrogen combustion through modified gas turbine engines. In addition, hydrogen fuel cells create electrical power that complements the gas turbine, resulting in a highly efficient hybrid-electric propulsion system. While not as efficient as pure electric aircraft, hybrid aircraft will be able to provide a range out of reach of electric alone. They will also be able to carry greater number of passengers and offer a realistic alternative to kerosene-powered longhaul routes.

Such hybrid aircraft may seem like the nirvana, but they are not without drawbacks. Hydrogen storage and usage of course brings safety concerns.

While hydrogen processing has been used for years in oil refineries and the fertilizer industry, aviation represents a new road to travel. Happily for its passengers, the aviation world is safety obsessed. All parts of the industry (transport, storage, usage etc.) must pass rigorous safety tests. Current aviation protocol is based on the fossil fuel powered jet engine – a technology that has been around for decades. There will need to be a wholesale shift from regulators and companies to embrace a new safety environment.

Insurers can of course help by providing cover for new and test products and assisting their clients in de-risking the evolution to new technology. This could include insuring electric and hybrid aircraft types through their testing phases and as they move into service, or creating an insurance safety net for a company’s R&D operations. Such a technological leap is not without risk and companies (both manufacturers and end users) will hugely benefit from the support of their trusted partners as they adapt for the future.

Don’t forget about marginal gains and design efficiencies

While they are the future, both electric and hybrid technologies will not be available tomorrow and, along with SAFs, there are shorter-term more mundane gains to be made from the aviation industry. One of the key areas for such gains is operational efficiency and there is nothing to stop all aircraft operators looking at this side of their business and making changes now. A combination of operational levers can drive emission reductions at scale. Examples can include pre-flight via mission tailoring and fuel planning (i.e. ensuring the right aircraft

is being used for the right flight); on the ground via traffic management (to reduce the time engines are on in traffic); during approach and descent via better air traffic management (to reduce holding time) and adapting climb and descent procedures (to spend longer at optimal cruise altitude); during cruise via dynamic routing (responding to changing weather patterns); and after flight via preventative maintenance and cleaning.

There are plenty of airlines already embracing these marginal gains. Over 40 airlines have partnered with Sky Breathe – big data technology that uses artificial intelligence (AI) to analyse billions of data records from all types of data sources, including flight data recorders, operational flight plans and Aircraft Communications Addressing and Reporting Systems (ACARS), before combining them with environmental data from actual flight conditions (such as payload, weather conditions, Air Traffic Control (ATC) constraints, etc). It then identifies the most relevant saving opportunities and provides a series of recommended actions which it claims can reduce total fuel consumption by up to 5%.

There are also improvements that can be made to existing aircraft design to drive fleet efficiencies. This mostly comes through the incremental introduction of enhancements (for example, wingtip, blended winglets, or increased wingspan) and improvements to engine efficiency. None of these improvements will drive the industry to net zero, but they will all play a vital role in reducing emissions intensity of the aircraft and inch aviation further on its journey towards a more environmentally friendly future.

This is the broader picture in a nutshell. There are many exciting developments each with a part to play. Some will grab the headlines and appear to be futuristic leaps; others will go unremarked but are just as important. No one development can help the industry single-handedly. Instead aviation will look at multiple solutions and there is risk and barriers to each. Given the uncertainty, there has never been a more important time for insurers and other financial partners to support their clients as they take the steps necessary for a net zero future

AFRAA factsheet and call to action on decarbonisation pathway to net zero emissions

Introduction

Reaching net zero emissions means removing an equal amount of CO2 from the atmosphere as we release into it. Put simply, net zero applies to a situation where global greenhouse gas emissions from human activity are in balance with emissions reductions. At net zero, carbon dioxide emissions are still generated, but an equal amount of carbon dioxide is removed from the atmosphere as is

released into it, resulting in zero increase in net emissions. The expected carbon emissions on a ‘business as usual’ trajectory over the 2021-2050 period is approximately 21.2 gigatons of CO2 Success in mitigating net emissions will require the coordinated combined efforts of the entire aviation industry (airlines, airports, air navigation service providers, manufacturers) plus significant government support.

Global initiatives

At the 77th IATA Annual General Meeting in Boston, USA, on 4 October 2021, a resolution was passed by IATA member airlines, committing to achieving net-zero carbon emissions from their operations by 2050. This pledge brings air transport in line with the objectives of the Paris Agreement to limit global warming to scenarios below 2.0°C. Having agreed to a Long Term Aspirational Goal (LTAG) on climate at the 41st Assembly of the International Civil Aviation Organization (ICAO) in October 2022, governments now share the same target for aviation’s decarbonisation.

The key elements of the emissions reduction strategy are:

• The use of Sustainable Aviation Fuel (SAF), sourced from feedstocks that do not degrade the environment or compete with food or water;

Milestones towards net zero

• Investment in new aircraft technology, including radical new aerodynamic and alternative propulsion (electric or hydrogen) solutions;

• Continued improvement in infrastructure;

• Operational efficiency, with particular focus on improved air traffic management;

• The use of approved offsets, including carbon capture and storage technology.

Global milestones toward net zero

The table below by IATA illustrates a potential set of estimated milestones towards net zero, including the mix of abatement measures (‘pathways’) and some actions envisaged.

2025 381 megatonnes (Mt) (2021-2025)

2030 979 Mt (2026-2030)

2035 1,703 Mt (2031-2035)

2040 3,824 Mt (2036-2040)

2045 6,153 Mt (2041-2045)

2050 8,164 Mt (2046-2050)

97% offsets, 2% SAF, 1% improvements above business as usual (BAU)

93% offsets; 5% SAF, 2% improvements above BAU

77.5% offsets, 17.5% SAF, 3% improvements above BAU, 2% Carbon Capture Utilization and Storage (CCUS)

44.5% offsets, 40% SAF, 7.5% non drop-in fuel (new propullsion technologies), 5% CCUS, 3% improvements above BAU

55% SAF, 24% offsets, 10% non drop-in fuel, 8% CCUS, 3% improvements above BAU

65% SAF, 13% non drop-in fuel, 11% CCUS, 8% offsets, 3% improvements above BAU

ICAO agree long-term goal for international aviation (2022); energy sector commits to at least 6 million tonnes SAF production; agreement of full implementation of Article of Paris Agreement

Use of 100% SAF on aircraft, ANSPs fully implement ICAO Aviation System Block upgrades to deliver fuel efficiency improvements of 0.3% by 2030

Evolutionary technology achieving 30% reduction in fuel burn, electric/hydrogen aircraft for regional markets (50-100 seats, 30-90 min flights) become available

Feasibility of new aircraft such as blenderwing bodies demonstrated with full-scale working prototypes, electric/hydrogen for short-haul markets (100-150 seats, 45-120 min flights) become available

Necessary infrastructure for new energy requirements (low carbon electricity/hydrogen) becomes available

Commercially viable annual SAF production of 449 billion litres available

Contribution of African Aviation towards emissions reduction

The aviation industry’s focus has always been to progressively reduce emissions while accommodating the growing demand for air travel. The ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a key initial pillar to attaining this goal. CORSIA aims to stabilise international emission levels in the short-to-medium term.

The current focus among African aviation actors is to reduce as much CO2 as possible through investment in new and modern aircraft, operating more efficiently, and investing in smarter airport infrastructure and facilities. African airlines’ commitment to sustainable environmental practices is noticeable through operational decisions and policy changes as recommended by IATA and ICAO in the following areas:

• Striving for the most efficient operations – flying more direct routes, aircraft continuous ascent and descent;

• Investing in new and modern aircraft;

• Taking measures to reduce carbon footprint;

• Introducing recycling initiatives at airline and airport facilities;

• Integrating environmental programmes into all planning and decision-making processes;

• Adapting energy and water efficient practices;

• Encouraging improvement in the performance of suppliers through the development of environmental criteria within the framework of procurement policies.

Some 17 African countries have signed up for the voluntary CORSIA emissions

monitoring and reporting phase. In cooperation with IATA, Ethiopian Airlines, Kenya Airways, and South African Airways, among others launched the Carbon Offset Program that offers customers the opportunity to contribute towards offsetting the CO2 emissions related to their flights. The money raised through these schemes is invested in re-forestation projects in the respective countries.

In Ethiopia and Kenya, Boeing is working with the airlines and governments to help develop SAF feedstock production capacity. Boeing is also working with Ethiopian Airlines to include aviation sustainability in the curriculum of the Ethiopian Aviation Academy.

In 2016, South African Airways (SAA) became the first African passenger airline to operate a flight using sustainable aviation fuel (SAF). Similar SAF-operated flights were subsequently conducted in Ethiopia and Kenya. However, the enthusiasm is difficult to sustain due to the non-availability and high cost of SAF, lack of airport infrastructure, and lack of incentives, among other challenges.

To build capacity, AFRAA, AFCAC, IATA, and ICAO have, at different times, organised workshops and seminars to inform and sensitise airlines on the environmental impact of their operations and the mitigation measures that will assure sustainability and lead to net zero emissions. These events have brought significant awareness of measure to be adopted to improve the situation and build capacity at the operational level.

African airlines’ aspirations towards Net Zero Emissions

Pathway Actions by Industry & Government

Sustainable aviation fuel

• All airlines should investigate sustainable aviation fuel opportunities

– start by doing test flights

• Make substantial and bold SAF offtake agreements early

• Make the case to governments and the finance community for SAF scale-up

• Bring passengers and major customers on board sustainable aviation fuel financing

• Develop appropriate regulatory framework

• Provide incentives for investment in SAF

• Scale-up areas for collaborative approaches – within industry, between industry and governments and with the research community and others

• Invest in infrastructure

• Better land policy to facilitate investment in feedstock

Technology

Operations and Infrastructure

• Accelerate research into radical airframe designs, electric and hydrogen propulsion

• Form partnerships with non-aviation technology providers

• Provide incubation opportunities for new green technology start-ups

• Prepare new energy requirements for electric and hydrogen aircraft

• Governments to continue to fund research programmes in the sector

• Implement optimised flight profiles as air traffic volumes grow

• Implement fixed electrical ground power, weight-based efficiency measures, continuous approach and departure, airport collaborative decision making, aerodynamic efficiency opportunities and assisted taxing opportunities

• Collaborate to speed up investigating, testing and certification of new efficiency measures

• Encourage efficiency action throughout the system

• Investigate new approach technologies and procedures at all applicable airports

Offsetting of aviation carbon footprint

• Support ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and ensure it continues to evolve

• Set long-term CO2 goal through ICAO

• Do not duplicate market mechanisms

• Base any domestic measures on CORSIA principles

• Promote development of carbon capture and removal opportunities

AFRAA Sustainable Aviation Fuels (SAF) Task Force

AFRAA is very much aligned with the Aviation industry and all the stakeholders on the actions to contribute towards the long-term aspirational goal (LTAG) of net-zero carbon emissions from aviation by 2050 (ICAO Resolution A41-21). By fulfilling its objectives, the SAF Taskforce will play a crucial role in advancing the sustainable aviation agenda in Africa, contributing and aligning with global efforts in reducing aviation’s carbon footprint, and ensuring a greener and more resilient aviation industry for the future.

AFRAA has established in 2023 the AFRAA Sustainable Aviation Fuels (SAF) Task Force as a forum for Members, industry experts and stakeholders to deliberate and develop strategies for availing Sustainable Aviation Fuels (SAF) at fair prices to member airlines. The Taskforce aims to accelerate the development, deployment, and adoption of SAF within the African region to reduce greenhouse gas emissions and contribute to the sector’s overall environmental sustainability.

Purpose of the AFRAA SAF Task Force

The SAF Taskforce aims to provide strategic guidance, expert recommendations, and actionable solutions to promote the sustainable growth of aviation while mitigating its environmental impact. The Taskforce will collaborate with industry stakeholders, governmental bodies, research institutions, and other relevant organisations to promote, facilitate and accelerate the adoption of SAF across all airlines in the region.

The key objectives of the SAF Taskforce include:

• Promoting public awareness and understanding of SAF to attain support from various stakeholders, including passengers, investors, and the general public.

• Identifying and evaluating the most promising SAF technologies and feedstocks, considering their environmental, economic, and social implications for Africa.

• Developing a comprehensive roadmap for the SAF sector, outlining milestones, targets, timelines and

capacity building to facilitate the integration of SAF into aviation operations.

• Creating strategies to make SAF more cost-competitive and encourage its broader adoption by airlines, including exploring partnerships and incentives.

• Recommending policies, incentives, and regulatory frameworks that support the growth and commercialisation of SAF production to meet the aviation fuel needs in the region.

• Encouraging collaboration among key stakeholders, including airlines, fuel producers, airports, governments, and NGOs, to foster innovation and investment in SAF.

Focus areas of the AFRAA SAF Task Force

The SAF Taskforce will focus on the following areas:

a. SAF technologies: Evaluating various technologies for producing SAF, including but not limited to biofuels, synthetic fuels, and renewable hydrogen.

b. Feedstock assessment: Analysing the environmental sustainability and scalability of different feedstocks used in SAF production.

c. Supply chain and infrastructure: Assessing the infrastructure requirements and logistics for producing, blending, and distributing SAF in the African region.

d. Policy and regulatory framework: Review existing policies, and regulations and propose new measures that incentivise the uptake of SAF and engaging with regulatory authorities to advocate for supportive policies, and sustainability certification standards for SAF.

e. Investment and funding: Identifying funding sources and mechanisms to support research, development, and commercialisation of SAF projects in Africa.

Championing regional safety coordination for Better Skies in Africa

Safety is one of the priority strategic objectives of AFRAA. That is one of the reasons why AFRAA is championing the regional safety coordination for Better Skies in Africa.

In the late 90s and early 2000s, Aviation watched the increases in air traffic and accident rates in Africa with concerns.

In 2007, ICAO Assembly passed Resolution A36-1: Comprehensive Regional Implementation Plan for Aviation Safety in Africa, known as AFI PLAN. Several individual States, International Organizations, and Industry Stakeholders

pledged support to the AFI Plan coordinated by ICAO.

At the regional level, Africa analysed the past trends of its safety performances. It set the Abuja Safety Targets in 2012, with the primary goal of bringing Africa’s accident rates to the range of the World average. To work towards the said objective, Aviation stakeholders decided to focus on three accident categories, namely, runway excursion (RE), loss of control in flight (LOC-I), control flight into terrain (CFIT), and strengthening the safety oversight capacity of African States.

Africa safety status

However, since 2012, the activities have concentrated on reinforcing the safety oversight weakness of African States. Yet, out of the 55 African States, the number of States with a safety oversight effective implementation (EI) rate of 60% or greater passed from 14 in 2012 to 28 in 2022. From 2012 to 2022, African safety results recorded a slow downtrend; in 2016, no accidents occurred in commercial air transport. Apart from 2016, the regional safety performance remained worse than the world average; while CFIT and LOC-I events have decreased, runway safety remains a serious safety risk in African flight operations. There is a need to focus the aviation stakeholders’ collective efforts on operator’s sensitisation through an annual safety and operations summit.

A buddy system between European Union Aviation Safety Agency (EASA) inspectors and those of the AFCAC AFI-CIS (Africa and Indian Ocean –Cooperative Inspectors Scheme) could make a positive difference in increasing the number of African States achieving the relevant Abuja Safety Targets. The EU banned list of African Airlines remains a concern for AFRAA.

Flight Safety Foundation has created an interactive dashboard of the Foundation’s Aviation Safety Network (ASN) data that displays all ASN accident and incident data relative to the African region. The safety dashboard depicts the accidents and serious incidents in the region over a six-year period and provides the ability to parse and filter results a variety of different ways, including by aircraft type, type of operation, ASN and ICAO accident categories, country of occurrence, and phase of flight. The dashboard also reflects the status of the accident report and provides links to the ASN reports on each accident of incident.

AFRAA regional safety approach

To address public perception about the safety of African operators, aviation stakeholders need to continue with their coordinated efforts to safeguard the commendable performance achieved from 2016 to 2018.

The requirement of safety oversight rate of 60% Effective Implementation (EI) to participate in the Single African Air Transport Market (SAATM) implementation underlines Africa's commitment to maintaining safety as the first aviation priority in the region.

Therefore, AFRAA articulates its safety strategy based on the five pillars towards the strengthening of safety in flight operations in Africa. These include:

• Cooperative approach in safety improvement in Africa – Abuja safety targets;

• Operational compliance of African carriers with international standards;

• Data-driven Safety Management;

• Infrastructure safety and;

• Fleet Modernisation.

Pillar 1: Cooperative approach in safety improvement in Africa –Abuja safety targets

AFRAA urges States to ensure the implementation of all the Abuja Aviation Safety Targets. AFRAA keeps abreast of all aspects of Africa’s safety improvement through its participation in Regional Aviation Safety Group (RASG-AFI) activities and other regional safety initiatives. In the framework of its Technical, Operations, and Training Committee, AFRAA coordinates with operators and disseminates their challenges at the regional meetings, and encourages the sharing of safety data among operators.

Pillar 2: Operational compliance of African carriers with international standards

AFRAA requires a successful IATA Operational Safety Audit (IOSA) or IATA

Standard Safety Assessment (ISSA) for any airline to be admitted as a member or an associate member of the Association. Therefore, AFRAA assists African airlines for IOSA or ISSA preparedness. As the number of African airlines on both IOSA and ISSA Registries increases, the safety standards and performance on the continent are enhanced.

AFRAA extends associate membership to African airlines operating small aircraft that are not eligible for IOSA.

In order to further enhance safety in the operations of African airlines, AFRAA is committed to promoting IOSA, ISSA, IATA Safety Audit for Ground Operations (ISAGO), and IATA Ground Operations Manual (IGOM).

Beyond IATA initiatives, AFRAA encourages airports, air navigation service providers, and CAAs to improve their respective compliance with international standards through the relevant assessments.

Pillar 3: Data-driven safety management

AFRAA believes that its members need to embrace the industry trend related to the utilisation of ‘big data and artificial intelligence.’ AFRAA has established a data department in the Secretariat to facilitate air transport analyses, including safety.

To introduce the data-driven decisionmaking process in the industry, AFRAA plans and conducts courses on Quality Management System (QMS) and Safety Management System (SMS) every year. It is AFRAA's view that the consistent practice of SMS, including Flight Data Monitoring and Analysis (FDMA), will enhance operational safety performance in Africa.

Pillar 4: Infrastructure safety

Africa and Indian Ocean (AFI) Air Traffic Service (ATS) Incident Analysis Group (AIAG) is a multi-stakeholder collaboration aimed at identifying and addressing the causal factors for aviation safety occurrences resulting in the loss of separation in the AFI Region.

AFRAA urges its members to report ATS incidents in the Flight Information Regions (FIRs) where they occur and send copies of these reports to the IATA Regional Office in Johannesburg to populate the regional ATS incident database.

AFRAA Secretariat is engaged in the multi-stakeholder collaboration annual activities to participate in the continuous improvement of infrastructure safety in Africa.

In the framework of its Technical, Operations, and Training Committee, AFRAA collects ground operation safety challenges with the view to conveying

the same to the airports. Due to the prominence of runway related accidents in Africa, the Secretariat urges member airlines to participate in Runway Safety Teams (RST) at various airports.

Pillar 5: Fleet modernisation

Backed by the Cape Town Convention, African airlines have access to modern fleet through the exploration of the “African Development Bank (AfDB) Framework and Guidelines to Support the Aviation Sector,” the existing Export Credit Agencies (ECA), and aircraft lessors.

AFRAA urges member airlines to engage in fleet modernisation in efforts towards the improvement of public perception of their image and enhance their operational performance.

Launch of the 1st ever African

Safety and Operations Summit

With the overall objective of enhancing safety level in the African region and sharing of operational best practices, AFRAA, in partnership with in partnership with Flight Safety Foundation (FSF) will organise the first-ever African Safety and Operations Summit. The event will take place back-to-back with AFRAA’s Aviation Stakeholders Convention from

12-15 May 2024 in Addis Ababa, Ethiopia hosted by Ethiopian Airlines.

Why attend the AFRAA-FSF Aviation Safety & Operations Summit?

I. Continuous improvement of safety

The main objective is to enhance safety in the civil aviation sector of the region. By sharing information on incidents and accidents, identifying trends, and discussing best practices, participants can collaborate to identify areas for improvement and implement more effective safety measures. Participants also can hear from safety experts, accident investigators, airline representatives, and other stakeholders, which increases awareness of the risks and challenges faced by the industry. This knowledge exchange contributes to improving operational safety and reducing risks in aviation.

II. Promotion of safety culture

The summit plays a crucial role in promoting a safety culture. It highlights the significance of safety as the industry's top priority and encourages active participation from all involved in identifying and mitigating risks. It reinforces that safety is everyone's

responsibility, from top executives to operational staff, and raises awareness of safety best practices.

III. Updates on regulations and operational safety standards

The summit is a vital means of updating participants on the latest regulations and safety standards. Regulatory authorities and international organisations often present the latest regulatory updates, guidelines, and recommended practices during the event. This enables stakeholders to stay up-to-date and comply with constantly evolving safety and operational requirements.

IV. Learning and professional development

The summit offers a variety of lectures, panels, and workshops delivered by prominent experts. These sessions provide valuable insights, market trends, and best practices that can be applied in daily work. Participating in these conferences can contribute to attendees’ professional development by expanding their knowledge and skills.

V. Exposure to innovative products and services

The summit includes exhibitions showcasing companies’ latest products, services, and technologies. This allows participants to explore new solutions, learn about technological advancements, and discover potential suppliers and partners. Exposure to these innovations can help companies improve their efficiency, competitiveness, and performance.

Embraer forecasts global demand for 11,000 new jets & turboprops valued at USD 650 billion in the next 20 years

Embraer has published its 20-year Market Outlook for commercial aircraft deliveries through 2042. The Market Outlook identifies the demand for new jet and turboprop aircraft with up to 150 seats over the next two decades. It also presents analysis of global influences and trends in six world regions.

World passenger traffic, measured in revenue passenger kilometres, is expected to return to 2019 levels by 2024 as a result of a prolonged pandemic recovery, geopolitics, and changes in industry dynamics. Global RPKs will grow 3.2% annually through 2042. World RPKs will reach 17.7 trillion by 2042.

Asia Pacific will be the largest market by then, with 42% of global traffic. Combined, Europe and North America will generate 38% of total air transport demand.

Embraer foresees world demand for 11,000 new up-to-150-seat aircraft over the next 20 years with a market value of USD 650 billion. Replacement of aging aircraft will account for 55% of all new deliveries while 45% will be

used to grow markets. Over the next 20 years, smaller aircraft will drive worldwide demand for 8,790 up to-150-seat jets. Of these, 48% will support market growth and 52% will replace aging aircraft. The trend to smaller aircraft reflects overall weaker demand growth, traffic patterns favoring short haul versus long-haul, an increasing need for flexibility, connectivity, and efficiency, and fleet and network transitions to a decarbonised industry

through new technology. The need to enhance flexibility through narrowbody complementation also benefits the upto-150-seat jet segment. In uncertain times, being able to address demand with the optimal capacity size – maximising profitability – is more important than ever. Short-haul operations will drive worldwide demand for 2,210 turboprops, mostly focused in Asia Pacific, Europe, and North America.

Three key trends shaping future demand for travel and aircraft:

(i) Fragmentation of the Global Economy – regionalisation of businesses and supply chains will alter how goods and people move;

(ii) Social revolution – a remote workforce will prompt air service in new communities;

(iii) Market effects of sustainability – the drive to sustainability will affect demand, as will the cost of new fuels and new technology, this is likely to increase the cost of flying over time.

Other trends include: the need for fleet flexibility to cope with an uncertain and changing demand, mostly through narrow-body complementation, and the growing popularity of crossover narrow-body all-cargo jets.

Africa with a huge opportunity to build a robust, efficient foundation of aviation sector

The fundamentals of the region lead to crossover aircraft as demand leans towards thinner markets that are better served by smaller aircraft to efficiently increase frequencies, load factors and yields.

Fostering intra-regional connectivity is central to promoting growth but needs the right equipment and political coordination. In the upcoming years, flight operations in Africa should be expanded in a robust and efficient manner.

Compared to other regions, Africa is still in the early stages of developing its economy and the continent’s air transport system. As of 2023, the propensity to travel is the lowest among world regions yet it also shows the magnitude of untapped potential.

Source: Sabre, IHS Markit

After the pandemic, airlines face some degree of resizing and restructuring, with some even upsizing their operations to meet the demand left behind by bankrupt airlines. Consequently, there is a new opportunity to address the persistent problems of the region: low load factors due to overcapacity, poor connectivity stemming from few frequencies

(almost 70% of domestic and intraregional markets have less than one daily flight, as shown in the chart below), the absence of nonstop flights in many markets, and operating inefficiencies from regulatory restrictions. The up-to-150seat jet segment can address most of these issues.

Source: Sabre

Aviation can play a fundamental role in the drive for long-term African economic and social prosperity. In most countries, air travel is an essential service and a catalyst for promoting tourism and fostering trade and regional development.

Some initiatives that could help build a stronger foundation for the aviation sector include a push for a more collaborative environment and targeting better cooperation between African airlines. This would support the development

of intra-regional markets and increase local carrier competitiveness against airlines from other regions of the world.

In Africa, between 2019 and 2042, GDP is expected to grow at a 3.3% rate, while traffic, measured in RPKs, is expected to grow by 3.7% per year. In the up to 150-seat segment, there are currently 506 aircraft flying in Africa and this is expected to grow to 579 by 2042.

When looking at new aircraft deliveries over the next 20 years, Embraer sees a potential for 320 new jets in the up to 150-seats segment and 210 new turboprops on the African continent.

Access the full Embraer Market Outlook 2023 here:

https://www.embraercommercialaviation.com/ marketoutlook/

New world of revenue Optimisation and dynamic pricing

While the most turbulent time for the Airline industry is ending, all airline leaders will recognise the need for a more accurate financial forecast and revenue uplift, opening a new world for revenue optimisation and dynamic pricing. The need to rethink our legacy revenue optimisation is obvious in a highly dynamic travel environment, and customer behaviours are less predictable than before.

Total revenue management

With advanced technologies and NDC (New Distribution Capability) available to all, embracing innovation and implementing revenue optimisation through all flights, channels, and products is time. This leads to a form

of Total Revenue Management-Pricing from fares to ancillaries.

Personalisation

AUTHOR: Ivan Chemtob Senior Managing Consultant Senior Managing Consultant

Deep learning and data platforms enable accurate dynamic pricing and better predict customer demand and behaviours through a personalised approach. Ancillaries, such as seat selection and priority boarding, will be proposed at a price based on the customer’s willingness to pay, as fares should be.

Competitive advantage

Each customer at a certain period will correspond to a specific profile and appetite (or need) for paying extra services.

We have a different profile during the year, from business trips to family

holidays. Therefore, offering the right product at the right time and price via the correct channel is important to remain attractive and maintain our competitive advantage in any circumstances.

Finance forecast

This accurate dynamic pricing approach and total revenue management techniques will lead to increasingly precise traffic and revenue forecast accuracy.

More than ever, accurate financial forecasts are vital to guarantee that airline leaders make the right decision based on error-free information.

The new customer-centric approach will require adapting your process and organisation to reflect the new reality, and consultants-experts are here to help and support you.

This article was contributed by our expert Ivan Chemtob

Frequently asked questions answered by Ivan Chemtob

1. What are dynamic pricing methods in the airline industry?

Dynamic pricing based on the supply and

demand method involves changing prices frequently to reflect changes in demand, availability of seats, and other factors that affect pricing.

Basic pricing methods in the airline industry:

Real-time pricing

Real-time pricing algorithms constantly monitor market trends, competitor pricing, and customer behaviour to optimise fares and each profitability. Advance purchase pricing offers are less and less used by

airlines but still exist to lower fares for early bird customers.

Customer profile

On the contrary, this technique seems more used by mature airlines to better segment their customer based on the booking profile and behaviour.

Point of sale pricing

Airlines may offer different fares for the same flight depending on the point of sale. For example, a ticket purchased from a travel agent may be priced differently than one purchased directly from the airline’s website. GDS surcharge may also apply, with airlines advocating that travel agency may charge their customer for the extra services they deliver. NDC is, in that case, a crucial opportunity.

Dynamic bundling

Airlines may bundle various products and services, such as baggage fees, priority boarding, and seat selection, with a base ticket price to create dynamic packages. These bundles can be priced dynamically based on demand.

Dynamic pricing methods allow airlines to maximise revenue while providing customers with the best possible value for their travel needs, fares, and ancillaries.

2. What are the concerns and benefits of dynamic pricing?

Concerns

Unfairness

Dynamic pricing can be perceived as unfair if customers are charged different prices for the same product or service based on factors beyond their control. In reality, customers often buy different products in terms of conditions attached to their reservation, not only physical products.

Lack of transparency

The pricing algorithms used in dynamic pricing can be complex and difficult to understand, making it hard for customers to know how prices are determined.

Price discrimination

Dynamic pricing can be used to discriminate against certain groups of customers, such as those who are less price-sensitive or who have a higher willingness to pay.

Benefits

Increased revenue

Dynamic pricing allows airlines to optimise prices based on market demand, which can increase revenue and profitability.

Improved inventory management

By adjusting prices in real-time based on demand, airlines can better manage their inventory levels and avoid overstocking or understocking.

Personalisation

Dynamic pricing allows airlines to offer personalised prices to customers based on their preferences and behaviours, improving customer satisfaction and loyalty.

Competitive advantage

Dynamic pricing gives airlines a competitive advantage by allowing them to respond quickly to changes in market demand and stay ahead of competitors. Overall, dynamic pricing is essential to airlines’ profitability.

3. How are deep learning and data platforms applied in the airline industry for the financial forecast?

The airline industry uses deep learning and data platforms to improve financial forecasting in many areas:

Revenue management

Airlines use revenue management systems to maximise revenue by predicting demand and setting optimal prices. Deep learning models can be used to analyse large amounts of data, including historical bookings and flight information, to make more accurate predictions of future demand.

Maintenance

Airlines also use data platforms and deep learning to predict maintenance requirements and reduce costs associated with aircraft maintenance. This involves analysing data from sensors and other sources to detect anomalies and predict when maintenance will be required.

Fuel efficiency

Deep learning models are used to predict fuel consumption based on factors such as weather, flight routes, and aircraft performance. This helps airlines optimise fuel usage, reduce costs, and be more eco-friendly than before.

Fraud detection

Airlines also use deep learning to detect and prevent fraud. By analysing data from multiple sources, such as booking patterns and credit card transactions, airlines can identify suspicious activity and prevent fraudulent transactions. These technics are called revenue integrity management.

Applying deep learning and data platforms in the airline industry leads to better financial forecasting, improved operational efficiency, and reduced costs.

4. What are some strategic pillars of revenue management?

Revenue management involves optimising pricing and inventory decisions

to maximise revenue and profitability. There are typically three strategic pillars of revenue management, among many others:

Demand forecasting

Accurately forecasting demand is critical to revenue management. Revenue managers must understand trends, patterns, and external factors that affect the market, such as seasonal fluctuations, events, and economic conditions. Accurate demand forecasting allows revenue managers to adjust prices and inventory levels to meet demand and maximise revenue.

Price optimisation

Setting the right prices for products or services is another critical aspect of revenue management. Revenue managers can use pricing strategies such as dynamic pricing, price bundling, and segmentation to optimise prices and maximise revenue. Price optimisation involves identifying the optimal price point to maximise revenue while considering customer demand, competitive pricing, and market trends.

Inventory management

Effective inventory management is crucial to revenue management, as it involves determining the right amount of inventory on hand to meet demand. Revenue managers must monitor inventory levels, anticipate demand, and adjust inventory levels to avoid stockouts or overstocking. With effective inventory management, revenue managers optimise revenue by ensuring that products or services are available when customers want them and minimising costs associated with excess inventory.

5. What are the steps for customer centricity?

Customer centricity is a business approach that focuses on creating a positive customer experience by putting the customer at the centre of all business decisions. Here are the steps for achieving customer centricity:

Customer understanding

Develop a deep understanding of your customers by gathering data on their preferences, behaviour, and needs. Conduct market research and customer surveys, and analyse customer data to gain insights into their behaviour and preferences.

Customer segmentation

Group your customers into segments based on common characteristics such as demographics, behaviours, willingness to pay, and needs. This will help you tailor your marketing and customer service efforts to each segment’s specific needs and price offer.

Customer journey mapping

Map out the customer journey from initial awareness to post-purchase support. Identify the touchpoints where customers interact with your brand and look for opportunities to improve the customer experience at each stage. Lastly, you can offer up-sale to them at the right time during the customer journey.

The implications of Acadustry® in African Aviation

AUTHOR: Dr. Nadiir Bheekhun Founder CEO of AERONAD Group

AFRICA is a single colossal continent which consists of fifty-four separate countries. Amongst them, there is a huge disparity in the sense that some operate a relatively developed aviation industry while in others, services are far more limited. Although much effort is being made to realise a healthy and harmonised African Aviation, the latter indispensably requires highly trained staff and visionary leadership to transform the industry into an engine which generates prosperity. In addition, with the ever-evolving external environment, from technological improvements to unpredictable shocks, the need of upskilling and reskilling has become almost compulsory for organisations to experience continuous growth and sustainable profitability.

On the other hand, there are two main entities which are as different as land and sea, yet they complement each other, if properly interconnected. They are the

academia and industry and a combination of the two is primordial to enhance the operational efficiency and productivity of the air transport sector in Africa. Acadustry® is a portmanteau of these two words. In principle, the acadustry® model harmonises academic deliveries and industry-driven experientialfocused mentorship thereby creating a new synergic characteristic. One of the key issues within the African Aviation context which the concept of acadustry® can resolve is the inefficiency in the optimisation of human resources related to expertise sharing. On one side, the industry (1) tends not to harness the expertise incubated within the academia, and (2) is strongly reluctant to contribute financially to the preparation of relevant and essential training programmes, whilst on the other hand, the academia (1) dedicates ample time and effort for deriving better pedagogical methods

and fortifying delivery expertise, and (2) invests financially into seeking new knowledge through academic research. With their respective strength, a symbiotic partnership for an acadustry® platform can eventually cater for a sustainable Executive Education, thereby preparing holistic managers with allround capabilities to navigate the industry ahead, whilst creating competitiveness.

The acadustry®-oriented Executive Education shall be of two modes: open sessions and in-house training. An open executive education programme will put the candidate in the same room with other experts who are not only from industries, but also from academies. Working on cases, debating collaboratively, and developing new best practices with amongst them will create strong and valuable relationships. These sessions provide not only an expert taking on current hot topics, but also an excellent occasion for networking. In the second mode, the Executive Education are offered to organisations which are in quest for specific expertise

to meet organisational strategic and operational objectives. Corporations find themselves increasing their learning efforts not only to provide managers with a personal development path within the organisation but also to strengthen the organisational alignment between those managers and the company’s strategy. Because of this, customised executive programmes must be carefully designed according to the needs of a particular company, and the academia component becomes complementary herein. Another differentiation in an acadustry®organised Executive Education is that the recognition goes beyond the industry space, and reaches out into the academia dimension whereby the participants are able to get certified academically.

For the benefits of acadustry® to be harnessed to its fullest, the notion of Continuous Professional Development (CPD) needs to be inculcated into the mindset of leaders within the African Aviation community, to enabling advancement at both individual and corporate levels.

Digitalise borders to unlock Africa’s full potential

Africa’s immense potential to become a global powerhouse is undeniable. It has all of the ingredients including a market of 1.2 billion consumers (rising to 1.7 billion by 2030) and a combined GDP worth US$2.5 trillion. So what is holding it back?

AUTHOR: Jeremy Springall Senior Vice President SITA at Borders

The African Union’s (AU) members have all indicated their support for and recognition of the benefits of the Africa Continental Free Trade Area, the Single Africa Air Transport Market and the Free Movement of Persons Protocol. All of them are intended to unlock free trade, tourism, economic opportunities and promote widespread prosperity across the continent.

At the SITA Borders Management Africa Summit in Nairobi this month, speakers and delegates from governments

across the continent identified and discussed solutions to resolving the biggest hinderance to these AU flagship programmes realising their full potential, i.e. efficient borders to enable the frictionless flows of people and goods.

In our deliberations we were continually reminded that it is easier and faster to transport mobile phones from China to Africa than to move a few bags of maize across an African border post. At the root of this are inconsistencies in the criteria and processes applied by immigration and customs authorities for issuing visas, travel authorisations, goods import and transit permits, the use of unsuitable and often incompatible equipment and the vulnerability to agile international organised crime and terrorism. All of these have to be tackled with shrinking budgets and diminishing resources.

Striking a balance

Therein lies the rub: For economies to grow and a free trade area to work, governments need to balance protecting their countries from trafficking, terrorism, pandemics, and crime while making it easier to move people and goods across their borders and at the same time respecting personal data privacy and its underpinning legislation.

The good news is that proven digital border management technology and emerging digital identities put Africa in pole position to lead the way. A key advantage for Africa is that it faces fewer legacy challenges in the digital space and in many ways, it can move faster. The digital transformation of borders will be inevitable if the continent is to achieve its ambition.

Recognised benefits

Airlines and airports understand the potential of digitalising border processes. At the coal face of international travel, the industry has long recognised the need for digital immigration processes. The challenges of COVID accelerated this trend. For example, SITA’s 2022 Air Transport IT Insights showed that 75% of airline executives will invest in passenger biometric identity solutions by 2025. This means passengers will be identified by a simple facial scan, making the identification process fast and secure.

However, it can’t be done by one industry in isolation. It needs government and broader industry support.

SITA is leading the way

SITA, the global air transport industryowned IT and solutions provider, is leading this push. Over the past 30 years, SITA has helped 70 governments – including South Africa and Egypt –make their border crossings faster and more secure. We pioneered what is now the global standard for Advance Passenger Information processing and we are helping governments digitalise key immigration processes so that they can be completed ahead of travel. This helps governments to effectively extend their borders and assess who enters their country long before they arrive. Travellers, on the other hand, only have to complete a simple check on arrival.

The benefit of this approach has been shown to work time and again, particularly at big sporting events such as the World Cup. We helped South Africa in 2010, Brazil in 2014, and Qatar in 2022 to manage the vast influx of visitors.

Digital identities will take this to a new level. Driven by the UN’s International Civil Aviation Organization, which sets global passport standards, the industry is shaping a new digital identity that will replace physical documents such as identity cards or passports. A key driver is that holders will choose what data they would like to share with whom. It is privacy by design. These digital identities can be used at the airport but also at land and sea borders or other touchpoints, such as hotels or major events, as we did in Qatar for the World Cup. All that is needed is a simple scan of your face a biometric touchpoint or on your mobile phone. We see these digital identities being extended to goods and services. Together these technologies will reshape how borders are managed.

Making free trade a reality

The technology exists today to make an African free trade area a reality. It allows the balancing of protectionist measures to keep national borders safe with a more welcoming face to visitors. It is scalable. And it is inclusive, allowing all elements of public life to be managed from a single identity.

With the right support from governments across Africa, we can pull many levers to unlock free trade and tourism across the continent. Policy and intergovernmental co-operation the two most obvious but digitalisation must surely be essential among them.

Women in Africa’s Services Trade:

A spotlight on representation in the Aviation sector

AUTHOR: Ms. Beatrice Chaytor Head of the Trade in Services Division in the AfCFTA Secretariat

Introduction

Services trade is thriving in Africa, with average contributions of around 55% of GDP between 2013 and 20191. In 2019, services accounted for 65% of value added to global GDP and 49% of value added to Africa’s GDP2. However growth in the sector contracted to -34% in 2020 as a direct consequence of the pandemic3, with services exports in 2020 dropping to US $82.7 billion4. Travel accounts for

the largest share of services exports in every sub-region except West Africa where other services – mainly banking, insurance and business services – play a more prominent role. Yet there is tremendous potential for future growth and improvement in many services sectors, both at continental level and between Africa and the rest of the world, even though the continent’s role in global services trade is peripheral, compared to Latin America and South-East Asia5, and intra-African trade is also low.

That said, trade in services can help to create opportunities for African countries to expand their productivity outputs in sectors where they have comparative advantage, thereby creating jobs, contributing to increased GDP and generating foreign exchange, through improvements in connectivity, logistics, energy, information communication

technology (ICT), business and financial services both as tradable sectors in their own right and as contributions to production of manufacturing and agribusiness. In addition, imports of services can significantly improve performance by bringing greater competition, international best practice, better skills and technologies, and investment capital. Services complement manufacturing and will be critical enablers of increasing production of value-added goods in African economies. Unlocking intraAfrican trade in services can lead directly to increase in Africa’s GDP and economy and enhance levels of employment and skills transfer across the continent, as well as acting as an enabler for the development of regional and continental value chains.

1. Women’s participation in the African services liberalisation agenda

The AfCFTA Protocol on Trade in Services (Services Protocol) was designed to change Africa’s dismal performance in services trade: the legal instrument represents an important services trade vision and a strategic framework for further negotiation to deepen regional integration in Africa. Its aim is the progressive liberalisation of trade in services, allowing companies across the continent to easily operate across borders. The Services Protocol takes a hybrid approach to liberalisation, with State Parties obliged to make commitments in all service sectors through Schedules of Specific Commitments (SSCs) on the one hand, and broad regulatory frameworks for cooperation on the other.6 Five (5) priority services sectors (business; communication; financial; tourism and transport), are the subjects of the first round of liberalisation under the Services Protocol.7 The choice of these sectors was strategic: first, communication, financial and transport services are backbone services to many economic activities, with business services (particularly professional services) substantially contributing to services delivery through the movement of persons; second, most African countries have liberalised tourism in some form either in the World Trade Organisation or in their Regional Economic Communities (RECs), making it the most liberalised of the services sectors and presenting ‘low hanging fruit’

1 United Nations conference on Trade and Development (2019), UNCTADStat Data Platform available at https://unctadstat.unctad.org

2 Assessing Regional Integration in Africa, Volume X, Chapter 2 The Status of Services Trade and Services Trade Policies in Africa p. 16.

3 Beatrice Chaytor and Ify Ogo, Recovery from the Economic Impacts of the Covid-19 Pandemic in Africa: What Role for Trade? Tralac newsletter, Issue 18, April 2020 available at file.html (tralac.org)

4 UNCTADStat https://unctadstat.unctad.org

5Africa’s contribution to global services trade has consistently lagged around 2% of global trade. See Services Exports for Growth and Development: Case Studies from Africa, African Union Commission, December 2015; and UNCTADStat https://unctadstat.unctad.org

in terms of the potential socio-economic impact on micro, small and medium sized enterprises (MSMEs), women and youth.8

Indeed, services trade in Africa has an important gender dimension: more women are employed in the services sector than in agriculture or manufacturing, but this tends to be at the lower end of the value chain or in informal capacities. Also women tend to be heads of a large number of MSMEs which account for 80% of African business, yet they do not enjoy the same access as men to the full spectrum of services jobs and occupations.9 Through liberalisation and regulatory reform, trade in services could address constraints, eliminate or mitigate barriers and ultimately, move women up the value chain into more sophisticated manufacturing processes or service delivery, providing greater opportunities for their participation in economic activities and generally empowering them in the AfCFTA market place. The case of aviation provides huge potential in this regard.

As part of the AfCFTA legal architecture, the Services Protocol should be implemented in line with the objectives of the AfCFTA Agreement which provides in Article 3 for promotion of gender equality. Article 27 of the Services Protocol specifically provides that the export capacity of women services suppliers should be improved. It should be read together with Article 4, which gives AfCFTA States the right to regulate

in accordance with their national policy objectives. Where those national policy objectives include gender parity and equality, then the domestic regulation that the State enacts can provide the foil through which the implementation of the Services Protocol can be achieved. That notwithstanding, the entire Services Protocol should be read through the lens of Article 3 of the AfCFTA Agreement, promoting gender equality in the overall implementation of the Protocol.

Indeed, it is in the implementation of the commitments, using national AfCFTA Strategies, where they exist, that the State Parties can ensure that women participate fully in the trade space of the AfCFTA. For instance, State Parties can create such spaces for women through their national AfCFTA Strategies where

6 AfCFTA Protocol on Trade in Services, Articles 18-22.

7 Assembly/AU/Dec.690-712 (XXXI) found at 36130-assembly_au_dec_690_-_712_xxxi_e.pdf

8 Beatrice Chaytor, Creating a Single African Market on Trade in Services: Negotiating the Schedules of Specific Commitments under the Protocol on Trade in Services, Tralac Newsletter, Issue 14, October 2019, available at tralac Newsletter | October 2019 (mailchi.mp)

9 See Opportunities for Women Entrepreneurs in the Context of the African Continental Free Trade Area, UN Women, June 2019.

specific actions and policies can be outlined to assist women entrepreneurs and professionals to take advantage of the AfCFTA.10 The gender provisions in the Services Protocol represent a direct call to action to the State Parties to ensure that women’s participation in the AfCFTA through enhancement of export capacity can be assured in the same way as those of men. It is then dependent on the national level authorities to use specific measures and policies, and through collaborative efforts (either with

the private sector or across government departments, or with other AfCFTA State Parties), to ensure that this aspiration (indeed, obligation) can be achieved.

Women would therefore need to be empowered, enabled and educated to take advantage of the openings that will emerge from the implementation of the Services Protocol through the SSCs, but also through the regulatory frameworks. So for instance, women engineers and IT professionals would need to be constantly upskilled to use the trade space; their qualifications would need to be recognised in other territories through the use of mutual recognition agreements or similar arrangements between professional bodies.11 Such access to the trade space may also be enabled by removing trade barriers through the SSCs and developing regulatory frameworks to enable policy and regulatory coherence and synergy, that specifically benefits women entrepreneurs and professionals. Where barriers are removed in nontraditional sectors such as air transport or fintech, this can also impact positively on the upskilling of women professionals and entrepreneurs and enable them to compete in the same space with their male counterparts.

Moreover, the advent of the AfCFTA Protocol on Women and Youth in Trade is likely to buttress the efforts of AfCFTA State Parties in their implementation of the gender aspects of the Services Protocol. The Protocol on Women makes provision for supporting measures to

https://www.accord.org.za/analysis/international-womens-day-2021-empowering-women-for-an-equal-

10 Nadira Bayat and Thokozile Ruzvidzo, Empowering Women for an Equal AfCFTA, 2021

afcfta/ Gender mainstreaming in African Continental

Trade

be taken by State Parties in their efforts to expand trade and deepen regional integration across the continent. Overall, it seeks to “support the implementation of the AfCFTA as set out in Article 3 (e) of the Agreement by promoting and attaining sustainable and inclusive socio-economic development, equality for Women and Youth and structural transformation of State Parties”.12

2. Women’s participation in the Aviation sector

It is clear that the AfCFTA will only live up to its economic and social potential if the benefits from trade liberalisation and regional integration are inclusive and shared equitably. This section explores the aviation sector which tends to be a non-traditional arena for women’s participation, particularly since it is a technologically advanced industry. Initiatives for increasing women’s representation in the sector are largely industry driven. Such initiatives could be supported by specific government-led measures described in the first section of the article.

In 2019, aviation contributed US $63 billion to Africa’s GDP, while supporting 7.7 million jobs. In 2021, due to the impacts of the COVID-19 pandemic, the figures were drastically reduced to US$27 billion in GDP and 3.8 million jobs supported.13 That said, there is an upward trend in aviation on the continent, which provides immense opportunity for AfCFTA State Parties to develop their competitiveness in the industry.

2.1. Challenges in effecting change

The African aviation landscape is still quite male dominated, particularly in technical and managerial aspects, although the precise numbers for women’s participation across the industry are not fully known. However, gender equality and representation in the industry have been specifically identified as a desired outcome in the aviation industry, through calls at the global level in the International Civil Aviation Organisation (ICAO).14 Industry stakeholders report a number of challenges that traditionally hinder women’s participation in the industry, including access to education and skills development; perceptions of more traditional roles for women; work/life balance considerations; lack of awareness about diverse career paths in the industry, lack of scholarships, mentorship and sponsorship programmes; inadequate recruitment processes; and generally unconscious bias. The industry initiatives that have recently been launched to address these challenges from international organisations such as ICAO and the International Air Transport Association (IATA), and regional organisations such as the African Airlines Association (AFRAA) and the African Civil Aviation Commission (AFCAC) speak to the understanding that there has to be either a critical mass of voices and initiatives that foster change or a deliberate choice within the industry to make a change that supports women’s wider representation

12 Article 2, Protocol on Women and Youth in Trade (on file with author).

13 Data & Statistics - AFRAA - African Airlines Association

14 See ICAO’s Resolution A-39-30 on Gender Equality, available at https://www.icao.int/Meetings/a39/Documents/Resolutions/10075_en.pdf ICAO’s 2018 Gender Summit challenged the industry to reconsider and improve gender diversity in the global aviation industry.

in the industry. AFRAA specifically aligns itself with the 50-50 goal of women’s participation set by the UN.15 Intentional action in this regard has been reflected in more industry measures, such as IATA’s 25by2025 – Advancing Gender Balance by 2025, launched in 2019 to provide easily quantifiable metrics for intentionally increasing women representation in aviation.16

At the Africa level, AFCAC’s recently launched African Women and Youth in Aviation Initiative (AWIA), aims to develop a clear road map of actions and activities that will strengthen and increase the participation of women and youth in aviation on the continent. The objective is to gather the available data for Africa on diversity and inclusion among the broad spectrum of the aviation ecosystem, including women’s representation in careers in environment,

legal, management, engineering, safety and airworthiness, or air transport. AFCAC will aggregate the information on the activities which encourage women’s participation in such roles to obtain clearer data about what is happening on the continent. The intention is further to create a platform for women in aviation that includes sponsorship, mentoring, capacity building and confidence building among women professionals and entrepreneurs, as well as outreach to governments, CAAs, airlines, ANSPs and other stakeholders to encourage them to use the platform to effect significant change in the aviation industry. That change appears to gradually be taking place through the celebration of women such as Ms. Mercy Makau, Founder and President of the Young Aviators Club of Africa based in Kenya, who was recently inducted into the Women in Emerging Aviation Technologies Hall of Fame 2023. Through her Young Aviators Club of Africa, she has inspired and supported hundreds of young African aviators to develop their careers.

AWIA, which is designed to create awareness about the broad array of career paths for youth and women in the aviation industry on the continent, will gather data and analyse representation by women in the 16 domains of aviation across each African country, including in airworthiness, pilots and licensing, air transport, environment, air traffic control, as a way to assist governments and CEOs make informed decisions on the types of initiatives and actions to prioritise in changing the landscape for African

aviation to a more inclusive one. Such actions include those encouraging career succession and progression17, upskilling and reskilling, mentoring, coaching, promoting women’s competencies, including the use of technologies to level the playing field in technical positions, and training and capacity building.18

2.2.

Fostering leadership and technical roles

At the international level, out of the 33 states forming the ICAO Council, there were only 7 women representatives, and the objective is to move this number to a 50:50 ratio of men and women.19 There is promise on the horizon that women are taking their place in board rooms, upper management and technical and mechanical aspects of the industry.20 Implementation of the Services Protocol should help boost the impetus that has already started with the various initiatives from AFRAA, AFCAC, IATA, and ICAO. A survey done by IATA in 2018 found that there were only 3% of women CEOs in the global aviation industry compared to 12% in other industries. Women account for 8% of aviation CFOs globally, against a world average of 12%. Conversely in the roles for human resource director roles, women account for 32%. Industry experts suggest that this points to women being more represented at senior roles in non-technical aspects of the aviation industry, than in those that represent more STEM related roles. The SecretaryGeneral of AFCAC, Ms. Adefunke Adeyemi21, identifies significant under-

representation of women in technical and senior managerial positions.22 In her view, the industry must be more intentional about: a) moving women up the aviation ranks, and b) encouraging more women to choose careers in aviation. In this regard, AFRAA’s 2018 Resolution was a call to action to the industry to consider the barriers to gender equity and balance and to take initiatives that will attract highly skilled professionals across all levels. At a 2021 AFRAA conference of development of youth and women, stakeholders addressed how to get more women into leadership positions in companies in aviation. A set of recommendations were suggested, which are reviewed annually and are the basis for an Action Plan on Youth and Women in Aviation.

17 For instance, the average age of an African aviation professional is 59, while the average age in Africa is 18 years.

18 AFCAC has launched a series of regional Centres of Excellence in collaboration with ICAO and IATA that will develop course content targeted at women in aviation leadership.

19 This number depends on countries specifically sending female representatives to ICAO and ultimately, the Council.

20 For instance, the recent past President of the International Civil Aviation Organisation (ICAO) was Ms Poppy Khosa, the first in its 80 year history; and the CEO of Rwandair, Ms Yvonne Makolo now chairs the Board of the International Air Transport Association, the first female to do so in the 70+ year history of the organisation.

21 She is only the 2nd female Secretary-General since the establishment of AFCAC in 1969.

22 Globally, women are less present in roles such as pilots at a rate of 4%, CEOs at 3%, maintenance and technicians at 2.6%, air traffic controllers at 16.8%, air worthiness roles at 11.6%. By contrast, women make up 79.2% of flight attendants, and are the majority in administrative and human resource roles.

Ms. Mercy Makau

Ms. Adefunke Adeyemi

In Africa, it is encouraging that out of the 53 African airline members of AFRAA, there are 5 women CEOs, including in Equatorial Guinea, Rwanda and Uganda. Industry experts also highlight that a number of women are represented as heads of civil aviation authorities, in airline company boards of directors, and in various management roles. They note an increase in the number of qualified women taking on leadership roles in maintenance, air traffic control, engineering, cargo operations, the flight deck, management, including in South Africa, Kenya, Botswana, Ethiopia, Cameroun, Rwanda and Uganda. And across the spectrum of leadership roles there are examples of companies such as Swissport Kenya, led by CEO Racheal Ndegwa, which has 33% of women in top management roles; Advantage Air and Dragonfly Air (Kenya) headed by a woman CEO (Patricia Matu), where women represent 50% of the workforce. In both these examples, not only have the companies met the IATA’s 25by2025 target, but a conducive environment is provided for women at all levels.

The aim of 25 by 2025 is to increase women’s representation across the board by 25% first in all senior roles, and second in under-represented categories of roles, particularly technical roles such as engineering, and maintenance or safety. The initiative is voluntary for industry operators and so far there are more than 200 signatories to the scheme, incorporating more than 50% of IATA membership, and including the

majority of airlines but also non-IATA members such as airports, manufacturers, ground handlers and associations. After a slow start, IATA reports that around 140 signatories now provide data on their progress. In senior roles, women representation has gone up from 24% to 28%, while in technical areas, there has been an increase from 12% to 18%.

Out of 14 signatories from Africa, only 9 have reported on their progress in 2022, yet that still represents 50,000 jobs, out of which 22% are women in senior roles, while 6% are in the flight deck and 4% are in technical roles. This shows that while there is some progress, Africa is still lagging behind in terms of women representation in senior and technical roles. Nevertheless, IATA sees positive upward trends in the willingness of signatories to submit data and in the data themselves and points out that the goal is best practice sharing rather than enforcement of imposed quotas. A Best Practice Guide has been developed in this regard, which incorporates gender assessment surveys that signatories can use to track their progress in diversity and inclusion.23 There is understanding that the move towards gender equality in the aviation workspace is a work in progress, which is being improved incrementally.

Conclusion

The success of the AfCFTA depends on its inclusive nature and the way the enormous opportunities for women’s participation in the free trade area can be enabled. The Protocol on Trade in Services, part of the architecture of the

23 https://www.iata.org/en/about/our-commitment/25-by-2025/#tab-6

AfCFTA, is intended to be implemented in line with one of the core objectives of the AfCFTA Agreement: the promotion of gender equality. With the outline of the African single services market now becoming apparent, the adopted Schedules of Specific Commitments plus the regulatory frameworks in the five priority sectors, will add to the certainty and predictability of the African free trade zone, and further define the liberalisation agenda. Furthermore, State Parties can use their AfCFTA national strategies to implement the general provisions on gender in the Services Protocol, buttressed by the supportive provisions in the upcoming Protocol on Women and Youth in Trade to effect change in diversity and inclusion. In this way governments can be more intentional about providing specifically targeted measures to increase women’s participation in the AfCFTA. The examples of industry initiatives in the aviation sector which are being used to increase women’s participation in the industry, provide useful lessons that can serve as a launchpad for precise government action, as well as business network initiatives, to raise the productive capacities of women entrepreneurs and professionals that will empower them to take advantage of the opportunities in the AfCFTA. Such intentional measures and actions can go a long way to ensure that half the African population has equal access to the AfCFTA space, raising productivity levels, competitiveness and contributing to overall growth and development of the continent.

Customer experience an increasingly decisive factor when booking travel amid post-pandemic disruptions

Passengers continue to embrace technologies including mobile and biometrics to optimise the journey,

SITA 2023 Passenger IT Insights report finds

AUTHOR: David Lavorel SITA CEO

GENEVA – 7 September 2023 –

When booking a flight, experience at the airport is an increasingly important consideration for passengers, beyond just cost and availability of destinations.

SITA’s 2023 Passenger IT Insights report, published today, finds customers looking to technology to optimise every aspect of the post-pandemic travel landscape,

from addressing pain points in the airport journey, to supporting air transport sustainability, to streamlining intermodal travel.

The report reveals that, as demand has skyrocketed post-pandemic amid lingering staff and resource shortages for airlines and airports, the resulting disruptions to air travel have taken their

toll on passengers’ experience. Over half of passengers reported encountering flight delays and cancellations, with most highlighting the negative impact this had on their travel experience. It is therefore no surprise that concern over delays and cancellations causes anxiety at the booking stage for nearly one third of passengers in 2023.

Against this backdrop, passengers are embracing the use of smart technologies to smooth pain points along the journey. 2023 has seen passengers continuing to adopt mobile as a remote control for the journey, with boosted usage across booking, check-in, dwell time, on board, and bag collection.

When asked about comfort levels with biometric identification throughout the journey, passengers scored an average of 7.36 out of 10 (with 10 representing most comfortable), up from 7.26 in 2022, reflecting a rising desire for the frictionless airport experience this technology facilitates. There is additional interest in completing certain checks pre-arrival at the airport to further maximise efficiency, with nearly one fifth of passengers pointing to ‘automated checks before the airport ensuring documents are sufficient to pass border checks’ as a potential improvement to the booking process.

Sustainability is another crucial area where passengers highlight the potential of technology. The use of new technologies supporting sustainability emerged as the number one initiative passengers would value most for both airlines (for 64% of passengers) and airports (62%). This has jumped considerably from about half of passengers in 2022, sending a clear message to the industry that innovative approaches to achieving concrete emissions reductions are front of mind. Such technologies include flight path optimisation to reduce fuel burn on the airline front, and tools that monitor data on environmental performance to reduce emissions at the airport.

As the world of travel becomes increasingly interconnected, the survey finds that a significant majority of passengers expect to book intermodal1 trips in the coming year, with only 24% saying they are unlikely to do so. As openness to intermodal travel grows, so too does interest in technology to streamline this experience across the entire journey door-to-door, with passengers seeing intermodal as a new realm of travel that technology has the power to optimise with greater automation.

One third of passengers expressed interest in being able to drop their bags at their journey start point (either from their home or hotel or from the first terminal of departure) and have them arrive at their end destination, and nearly one third would like to see travel operators coordinate when disruptions occur and respond with necessary changes.

planning travel, cost is just one of the factors affecting travellers’ willingness to book flights. Experience at the airport has become fundamental to passengers’ decision making, and travellers are telling the industry loud and clear: the more they are subjected to clunky and inefficient processes, the more likely they are to consider other options. Passengers are pointing to a clear way forward for the industry: now more than ever they recognise smart technologies as key to streamlining travel while reducing its environmental impacts, both for air travel alone and for the broader intermodal ecosystem.”

1 Intermodal travel refers to any trips that consist of multiple modes of transportation (e.g land, sea, air) but which are booked through a single location or in the same booking.

David Lavorel, SITA CEO, said: “When

AFRAA timeline of activities,

June – December 2023

AFRAA Secretary General intervention at the 12th Pan American Aviation Safety and Operations Summit

AFRAA prioritises safety as one of its key strategic objectives.

Demonstrating this commitment, Mr. Abdérahmane Berthé, AFRAA Secretary General, attended the 12th Pan American Aviation Safety & Ops Summit organised by ALTA – Latin American & Caribbean Air Transport Association from 12-13 June 2023.

AFRAA firmly believes that African aviation has the potential to achieve even greater safety performance at an accelerated pace. To realise this, it is imperative for all aviation stakeholders to continue their collaborative efforts in alignment with the following 5 pillars:

• Cooperative Approach in Safety Improvement in Africa – Abuja Safety Targets;

• Operational Compliance of African carriers with International standards;

• Data-driven Safety Management;

• Infrastructure Safety and;

• Fleet Modernisation.

By actively engaging in events like the Pan American Aviation Safety & Ops Summit, AFRAA aims to foster knowledge sharing, explore best practices, and strengthen partnerships to further advance safety standards in the African aviation industry. Through concerted efforts, stakeholders can pave the way for a safer and more prosperous future for African aviation.

AFRAA collaborates with the International Air Cargo Association (TIACA) to stage the TIACA Regional Summit in Kenya

AFRAA had the opportunity to contribute to various sessions at the International Air Cargo Association TIACA Regional Summit –Africa held on 19-21 June 2023 in Nairobi, Kenya.

Mr. Denis Kimani, Manager – Government, Legal and Industry Affairs, made a presentation on Workforce Challenges – Attracting, Retaining and Developing the Next Generation Workforce continues to be a Universal Challenge. How Africa is tackling this crucial topic.

Ms. Maureen Kahonge, Senior Manager – Business Development and Communications, moderated a panel discussing a Spotlight on Air Cargo East Africa.

Ms. Raffaella Irie, Manager – Training, Data and Statistics, moderated a panel on Digital Innovation in Cargo Operations.

AFRAA kicks-off the Free Routing Airspace (FRA) trials workshop in Addis Ababa – Ethiopia

With the objective accelerating the implementation of Free Routing Airspace in Africa, AFRAA kicked off the Free Routing Airspace (FRA) trials workshop in Addis Ababa, Ethiopia on 31 October 2023.

The FRA project is one of the five LAB Projects of the African Aviation Industry Group African Aviation Sustainability Laboratory to revamp Air Transport in Africa that was held from 27 June to 1 July 2022 at AFRAA Headquarters in Nairobi, Kenya.

The FRA implementation aligns with the common strategy of providing efficiency in operations, lowering air navigation fees while reducing flight operating costs and C02 emissions. A total of eight (8) routes will be on trial – five from Ethiopian Airlines and three from Kenya Airways.

In his opening remarks, AFRAA Secretary General, Mr. Abdérahmane Berthé stated: “Implementing these trial routes will annually bring significant cost savings to the participating airlines and will support a sustainable future for the African Industry.”

The FRA workshop provides the opportunity to conduct trials along the paths linking various city pairs across different FIRs. The results of the trials will be shared with the AFI FRA Project Management Team and APIRG, which is meeting in the second week of November 2023 in Cotonou, Benin.

Present at the workshop included:

Daniel Abebe – Ethiopian Airlines Group VP Strategic Planning & Alliances – representing Mr. Mesfin Bekele, Group Chief Executive

Officer of Ethiopian Airlines, Yohannes Abera, Director representing Mr. Getachew Mengiste, Director General of the Ethiopian Civil Aviation Authority, Nene Addo and Ms. Chisom Ozoemena, representatives of the Afreximbank, Thabani Myeza, Director Africa Affairs CANSO, Eric Ntagengerwa, Representative of the African Union Commission, Robert Lisinge, the UN Economic Commission for Africa (ECA) Representative, Experts from ASECNA, Civil Aviation Authorities and Air navigation Service Providers, ICAO, IATA, Ethiopian Airlines and Kenya Airways.

Hosted by Ethiopian Airlines, the FRA trial kick-off workshop preparation was spearheaded by CANSO and AFRAA under the kind sponsorship of Afreximbank.

AFRAA CEO dialogues session with ASTRAL Aviation CEO

Astral Aviation Ltd CEO – Mr. Sanjeev Gadhia, hosted AFRAA Secretary General, Abdérahmane Berthé, at the airline’s offices in Jomo Kenyatta International Airport Nairobi – Kenya on 29 June 2023, for an ‘AFRAA member airline CEOs Leadership Dialogues’ session. Both AFRAA and the two airline’s Leadership teams were present at the dialogues session. The CEO dialogues initiative is a drive-by AFRAA to create close engagement with member airlines and a space for dialogue necessary to develop transformative

AFRAA at the Uganda Airlines media Lab

initiatives for AFRAA's actions, which are anchored on five pillars, including:

• Safe, secure, and reliable air transport;

• Visibility, reputation, and Influence of African airlines;

• Sustainable air transport;

• Cooperation;

• Data Intelligence.

AFRAA Secretary General – Mr. Abdérahmane Berthé and Senior Manager Business Development & Communications –Ms. Maureen Kahonge joined Uganda Airlines Leadership Team to facilitate a media Lab for Uganda Airlines and Ugandan Media from 4-5 July 2023 in Uganda.

Due to the industry’s complexity, it is imperative to find ways of bridging the information gap between the media and the Airline and with a long-term goal of the media understanding aviation and observing balanced reporting. The objectives of the initiative included:

1. To understand the media’s perspectives, share information from Uganda Airlines Leadership Team and subject matter experts;

2. To create a support framework for balanced media coverage of aviation and airline sector matters;

3. To bridge and strengthen relationship between Uganda Airlines and media;

4. To manage the expectations of the media and start a journey of nurturing journalists to practice responsible reporting;

5. To broaden the pool of journalists for reporting on aviation and airline industry subsector matters.

The interactive Media Lab provided much-needed clarity on the industry perspective. Selected Editors and Senior Journalists attended, including leading media houses: New Vision, Daily Monitor, The East African, NTV, NBS Television, Capital FM, CBS Radio, Radio One, Weekly Observer, Business Focus, Business Times, Uganda, Media Centre, 256 Business News, Chimp Reports, Bukedde News Paper, Government Citizen Interaction Centre.

In depth presentations made by AFRAA covered:

• The State of the Airline Industry in Africa – Global Positioning;

• Operation of an Airline;

• Media and the Airlines Industry – How to Make a Developmental Pact.

AFRAA CEO dialogues with Uganda Airlines

The Secretary General of the African Airlines Association (AFRAA), Mr. Abdérahmane Berthé, in a bid to foster closer engagement with member airlines of the Association, met the CEO of Uganda Airlines – Ms. Jennifer Bamuturaki and the airline’s Leadership Team on 7 July in Entebbe – Uganda at the airline’s head-office.

The issues covered in the deliberations included: current and future plans of Uganda Airlines, priorities for the airline industry by the Government, AFRAA and industry initiatives to support the attainment of sustainability of the air transport industry in Africa, AFRAA Projects for win-win value addition to Uganda Airlines and the preparations towards the forthcoming 55th AFRAA Annual General Assembly & Summit scheduled to take place from 19-21 November 2023 in Uganda.

AFRAA aims to facilitate better understanding of individual airline needs, local matters and challenges, priorities and business plans thereby enabling the Association to tailor specific actions that enhance its relevance to member airlines.

The CEO’s dialogues are continuous, round-the-year sessions that engage the member airlines’ decision makers with AFRAA leadership towards effective implementation of added-value projects and actions supporting members’ sustainability. AFRAA’s actions are anchoredon 5 pillars including:

1. Safe, secure and reliable air transport;

2. Visibility, reputation and influence of African Airlines;

3. Sustainable air transport;

4. Cooperation;

5. Data intelligence.

AFRAA officiates the Juja Preparatory School Aviation Day

AFRAA officiated and participated at the Juja Preparatory School's Aviation/ Aerospace Day on 21st July 2023. AFRAA was represented by Ms. Maureen Kahonge, the Senior Manager of Business Development & Communications, as the Guest of Honour, Mr. Denis Kimani, Manager of Government Legal & Industry Affairs, and Ms. Dicie Okaya, Business Development & Communications Assistant.

The event focused on addressing sustainability in the aviation industry, emphasising the need to train and groom youth to meet future demands. The theme was ‘the launch of aviation dreams’ and was organised by Juja Preparatory

and Senior Schools in partnership with the Young Aviators Club of Africa (YACA). The ceremony concluded with a tree-planting exercise at the school compound.

African arlines’ performance updates by AFRAA – August 2023

Airline Performance: In August 2023, traffic carried by African airlines reached 98.4% of the 2019 level. Domestic market share was estimated at 34%, intra-Africa at 29%, and intercontinental at 37%.

The total number of intercontinental routes operated by African airlines exceeded pre-COVID levels since October 2022. In some major airports (Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan, and Lomé) intra-Africa connectivity has reached or exceeded pre-COVID level since December 2022.

2023 is witnessing a narrowing of the airline revenue gap attributed to COVID-19 compared to 2022. In the first 3 months of the year, African airlines missed the levels attained in a similar period in 2019 by US$0.3 billion. This is expected to further narrow in the second quarter to US$0.2 billion, according to AFRAA data. Though full-year estimated revenue gap is yet to be computed, it appears 2023 would be a better year compared to the prior year. The 2022 full-year cumulative airlines revenue gap was US$3.5 billion for all African airlines compared to 2019.

The Jet A1 price continues the upward trend, going up by over $22 in one month. The global weekly average jet fuel price during the week ending 25 August 2023 was up 2.9% at $126.37/bbl. In July, the average weekly price was $103.64/bbl.

Blocked Funds

Total blocked funds reported by six (6) airlines in Fifteen (15) countries (13 in Africa and 2 outside Africa) is approximately US$339.1 million at the end of March 2023. AFRAA has requested meetings with some central bank Governors and will soon meet them to agree on a solution to this recurrent problem as part of engagements to have the funds released.

Regulatory/Industry Affairs

Canada’s Air Passenger Protection Regulations Update: Canada passed amendments to strengthen Air Passenger Protection Regulations, with the Canadian Transportation Agency (CTA) proposing changes for more stringent passenger compensation and complaints resolution processes. AFRAA urges airlines operating in

Canada to familiarise themselves with the details of the passenger protection regulations to avoid failing victims.

Amendment 29 to ICAO Annex 9 on travel facilitation: The amendments to ICAO Annex 9 became necessary following the disruption to the aviation business during the COVID period. To avoid a repeat of the facilitation lapses that occurred at the time, Amendment 29 sought to introduce new guidelines on passenger name record (PNR) handling and health protocols while reinforcing the requirements for handling passengers, especially those with reduced mobility, hearing and visual disabilities.

The new public health standards updated requirements relating to aircraft and facility disinsection and disinfection. Details are available here: WHO disinfection Procedures.

On facilitation, the New Standards for transport of persons with disabilities outlines special assistance to persons with reduced mobility, hearing- and vision-impairment to enable them obtain flight service-related information in accessible formats. The amendment also required that designated pick-up, drop-off points for PWDs and access routes be clear with no obstacles and adequate provision of parking facilities for PWD closer to the terminal building.

Other amendments include:

• Advance notice of assistance required for persons with reduced mobility;

• Ensure that airport facilities and services are adapted to the needs of PWDs;

• Establish measures to ensure that procedures are in place to combat trafficking in persons.

AFRAA interventions at the AFI Aviation week

Mr. Abdérahmane Berthé, AFRAA Secretary General made a presentation at the 8th AFI Aviation Week on 22 August 2023 on ‘AFRAA and industry initiatives on connectivity in Africa for Air Transport Economic Development.’

In terms of the number of international routes operated by African Airlines, Mr. Berthé reported that according to AFRAA analysis, African airlines exceeded their pre-COVID number of international routes in October 2022. With respect to intra-African connectivity, this reached 87% of the pre-COVID level during Q3 2022 and exceeded the pre-COVID level during Q4.

He reported that the general Intra-African connectivity is estimated to have reached the pre-COVID level since December 2022.

However, the number of existing connections is far lower than the real potential. ‘We can see a slight improvement from June to July,’ he stated.

On the share of Fifth Freedom flights – Q1 2023, Mr. Berthé reported that 85% of intra-African flights are direct vs 15% connecting with one stop or more. ‘Among those direct flights, 5th freedom represents only 21%, while the share of 3rd and 4th freedom flights is 79%,’ he remarked. Among the 54 countries in the African continent, only 7 have direct services to more than 20 African countries, a decline compared to 2020 (13 countries used to have direct flights toward other countries). Ethiopia is leading with 35 direct services to other countries within Africa.

Industry initiatives to enhance intra-African connectivity

Improving intra-African connectivity is one of AFRAA's priorities.

To achieve this, AFRAA has taken a series of initiatives:

1. The Route Network and Cargo Committee and

2. The AFRAA route intelligence portal, which objectives are:

i. Network coordination,

ii. Harmonisation of flight schedules,

iii. Increased intra-Africa flight frequency,

iv. Synergy through collaborative network development,

v. Development of virtual alliances through commercial agreements,

vi. Ensure that the Cargo business portfolio grows significantly.

3. AFRAA is involved in joint aviation stakeholders’ initiatives:

4. Collaboration with AFCAC for the implementation of the Single Air Transport Market (SAATM);

5. The Roadmap of the Air Transport Sustainability LAB under the African Aviation Industry Group (AAIG) hosted by AFRAA in June 2022;

Safety

“As we increase connectivity and develop new routes, our commitment to ensuring the highest aviation safety standards remain paramount.” Mr. Berthé stated.

Enhancing safety is one of AFRAA’s priorities through workshops and consulting activities. Promoting safety is also one of our strategic objectives. In this regard,AFRAA and Flight Safety Foundation (FSF) will launch the 1st Africa Safety and Operations Summit on 15 May 2024 back-to-back with the Aviation Stakeholders Convention (ASC) in Addis hosted by Ethiopian Airlines. The summit seeks to bring together the aviation stakeholders to discuss, strategise, and collaborate on shaping a safer future for African aviation.

On (22 August 2023), Mr. Gaoussou Konate, AFRAA Director of Technical and Operations, took the stage at the 8th AFI Aviation Week. His presentation centered on AFRAA and industry initiatives to enhance air navigation capacity and efficiency.

During his session, Mr. Konate highlighted the progress-to-date and deliverables for 2023 and beyond on the Roadmap implementation of the Laboratory on Air Transport Sustainability in Africa.

AFRAA and IATA reinforce collaboration to create a brighter future for the African aviation industry

23 August 2023, Nairobi – Kenya: Aviation plays a crucial role in connecting people and facilitating economic growth; Africa stands out as the region with the greatest potential. The industry is estimated to support $63 billion in economic activity and 7.7 million jobs according to the Air Transport Action Group (ATAG). Amid the potential and opportunities for growth, the air transport sector in Africa faces various challenges that impact the delivery of safe, secure and efficient operations, as well as the competitiveness of Africa’s aviation market.

It is on this backdrop that on 22 August 2023, the African Airlines Association (AFRAA) Secretary General, Mr. Abdérahmane Berthé, and Mr. Kamil Alawadhi – International Air Transport Association (IATA) Regional Vice President Africa & Middle East inked a Letter of Intent for the renewal of the existing Memorandum of Cooperation between AFRAA and IATA. Abdérahmane and Kamil further formalised a letter of reciprocal commitment for mutual support towards the six focus areas of Focus Africa initiatives and AFRAA

initiatives such as the Aviation Stakeholders Convention (ASC) and the Africa Safety and Operations Summit.

The MoU, which was initially signed in 2018, provides a framework to synergise joint efforts by AFRAA and IATA to aid Africa’s economic growth through a safer, more connected and sustainable aviation industry. Under the MoU, IATA and AFRAA will work on a joint action plan based on the following main areas of cooperation:

1. Building airline resilience through capacity building activities;

2. Attainment of cost containment on user charges and taxes;

3. Enhancement of intra-African connectivity through supporting the implementation of the Single African Transport Market (SAATM);

4. Reduction of carbon emissions in aviation, as aligned with ICAO’s strategy on environment;

5. Various initiatives in safety, security and flight operations;

6. Passenger and baggage facilitation;

7. Training and commercial;

8. Events.

“The renewal of the MoU between AFRAA and IATA is a noteworthy testament of the commitment of our two organisations to better serve the air transport industry and deliver our respective mandates for the African region. Through enhanced collaboration, the MoU facilitates the realisation of AFRAA and IATA’s common vision for the development of a safe, secure and sustainable aviation industry in Africa,” said Mr. Abdérahmane Berthé, AFRAA’s Secretary General.

“Further collaboration on the AFRAA Aviation Stakeholders Convention (ASC) and the AFRAA Africa Safety and Operations Summit and the six focus areas of the Focus Africa initiative including: safety, infrastructure, connectivity, finance and distribution, sustainability and future skills will help unlock the economic opportunities that will drive the growth of the aviation industry across Africa. Together, we can make a difference and create a brighter future for the African aviation industry.” Mr. Berthé added.

AFRAA – AFCAC collaboration: Review of Annual Action Plan

AFRAA and African Civil Aviation Commission AFCAC held a working session on 23 August at the sidelines of the AFI Aviation Week to align on the areas of collaboration under the framework of the existing MoU between the two organisations for the development of air transport in Africa. The focus areas include:

• Joint engagements on the implementation of the Single African Air Transport Market (SAATM);

• Human Capital Development – Capacity Building;

• Aviation Infrastructure;

• Aviation Security and Facilitation – One-Stop Security;

• Safety enhancement program (IOSA/ISSA support);

• Economic Oversight Regulation;

• Aviation Taxes and charges;

• Statistical data exchange;

• Roadmap for net zero emission by 2050 and initiatives towards SAF production/infrastructure.

AFRAA – ACI Africa collaboration: Review of Annual Action Plan

AFRAA Secretary General, Mr. Abdérahmane Berthé, and the Secretariat team had a working session with Airports Council International – ACI Africa Secretary General, Mr. Ali Tounsi, on 25 Aug 2023 at the sidelines of the 8th AFI-AviationWeek to review the annual work plan of actions under the framework of the AFRAAACI Africa MOU for mutual support to develop air transport in Africa. Some of the areas covered include:

• Intra-Africa connectivity and route development

• Runway Safety improvement at African Airports

• Africa Safety and Operations Summit

• Initiatives to enhance passengers’ travel experience at airports

• Environment initiatives to achieve the 2050 Net Zero targets

The 9th meeting of the YD/SAATM monitoring body, 28 – 30 August 2023 in Addis Ababa, Ethiopia

At the Headquarters of the African Union Commission in Addis Ababa – Ethiopia: The African Union Commission (AUC) in collaboration with the United Nations Economic Commission for Africa (UNECA) and the African Civil Aviation Commission (AFCAC organised the 9th meeting of the YD/SAATM Monitoring Body, from 28 -30 August 2023, in Addis Ababa, Ethiopia.

AFRAA, as a member of the YD Monitoring Body, was represented by the Secretary General – Mr. Abdérahmane Berthé and Manager Government Legal & industry Affairs – Mr. Denis Kimani.

The main objective of the meeting is to develop an implementation roadmap for the YD/SAATM Annex 3 relating to the Regulations on Dispute Settlement Mechanism (DSM) under the Yamoussoukro Decision, approved by the Extraordinary Session AU Sectoral Technical Committee for Transport, Transcontinental and

Interregional Infrastructure, Energy and Tourism (STC TTIIET) dated 14 June 2022, and, adopted by the AU Executive Council on 14 July 2022.

It was held under the theme: ‘Accelerating Infrastructure to Deliver on Agenda 2063 Aspirations African Union Commission’.

AFRAA meets to Z. Boskovic Air Charters Ltd

AFRAA Secretary General, Mr. Abdérahmane Berthé paid a courtesy visit to Z. Boskovic Air Charters Ltd CEO, Mr. Jimmy Kibati on Monday (4 September) to discuss;

• Potential areas of collaboration under the framework of AFRAA membership;

• Boskovic Air Charters’ storyline and plans as well as industry developments.

AFRAA Leadership Team joined the engagements in a hybrid format followed by a site visit of Boskovic Air Charters facilities at Wilson Airport.

Zambia Airways joins AFRAA membership

On 5 Sept 2023, Mr. Abdérahmane Berthé , the Secretary General of AFRAA, paid a courtesy visit to Mr. Abiy Asrat Jiru, CEO of Zambia Airways, in Zambia. This visit follows Zambia Airways' recent enrollment in the AFRAA Membership programme.

Zambia Airways is the flag carrier of the Republic of Zambia and is based in Lusaka, Zambia, with its hub at Kenneth Kaunda International Airport. The airline operates flights to South Africa, Zambia, and Zimbabwe.

AFRAA Secretary General intervention at CANSO Africa conference

AFRAA Secretary General – Mr. Abdérahmane Berthé, made an intervention at the CANSO Africa Conference in Livingstone – Zambia, on 6 September 2023 on the topic: ‘Perspectives on African Aviation – Challenges and Opportunities for Collaboration’

Starting off is intervention, Mr. Berthé made a highlight of the state of the industry. According to AFRAA data, in August 2023, traffic carried by African airlines reached 98.4% of the 2019 level the same month. In terms of revenue loss by African airlines attributed to COVID-19, this is expected to reduce to USD 1 billion. The global intra-African connectivity is estimated to have reached the pre-COVID level since December 2022 while the percentage of international routes operated by African airlines exceeded the pre-COVID level since October 2022.

In terms of collaboration to support jointly Aviation growth in Africa, Mr. Berthé gave a perspective on joint initiatives that will anchor aviation now and in the future. He gave a detailed narration of initiatives where AFRAA is collaborating with CANSO and other stakeholders. The main areas of collaboration include:

The African Aviation Industry Group (AAIG), the Air Transport Sustainability Laboratory roadmap, infrastructure improvement and the SAATM Joint Prioritized Action Plan.

On infrastructure improvement, CANSO and AFRAA are spearheading the Free Routing Airspace (FRA) project which aligns with the common strategy of reducing ANSP navigation fees while decreasing flight operating costs. Hence, the gains toward air service affordability will generate air traffic volume to benefit air

operators and ANSPs in Africa. The kickoff workshop is planned for October 2023 for five (5) trial routes from Ethiopian Airlines and Kenya Airways. The implementation of these routes will annually achieve the following benefits:

• Prevent burning 3,200 metric tonnes of fuel;

• Avoid emitting 10,100 metric tonnes of CO2, and

• Attain cost savings of US$ 2,784,000.

The SAAM Joint Prioritized Action Plan pillar 4 on infrastructure improvement is another area of collaboration for AFRAA, CANSO and other stakeholders. “We need to develop a Seamless Airspace Architecture. Consequently, through Collaborative Decision-Making (CDM), airspace users, and Air Navigation Service Providers (ANSPs) must select relevant Aviation System Block Upgrade (ASBU) modules and new technology pieces of equipment to ensure seamless operations safely and efficiently,” Mr. Berthé concluded.

AFRAA attends the 4th Ordinary Session of the African Union Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, and Energy (STC-TTIIE)

AFRAA was represented at the 4th Ordinary Session of the African Union Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, and Energy (STC-TTIIE) taking place this week from 12-15 September 2023 in Zanzibar.

As a member of the YD Monitoring Body and under the framework of the Air Transport Sustainability LAB Roadmap, AFRAA is supporting the African Union Commission's actions in the implementation of the Single African Air Transport Market (SAATM). Together, we're advancing connectivity and unlocking new opportunities for aviation across the continent.

AFRAA Secretary General at the 2023 African Aviation Summit

AFRAA Secretary General – Mr. Abdérahmane Berthé, made an intervention at the 2023 Edition of the African Aviation Summit in Abuja – Nigeria themed: ‘painting the big picture for African airlines’.

Mr. Berthé’s intervention comprised of a presentation and participation in a panel session. The presentation covered: the state of the airline industry, the economic trends, challenges and opportunities for the airline industry.

On connectivity, the outlook is positive – the total number of intercontinental routes operated by African airlines exceeded the pre-COVID levels since October 2022. In some major airports (Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan, and Lomé), the intra-Africa connectivity has reached or exceeded pre-COVID level since December 2022.

In terms of revenue loss attributed to COVID-19, Mr. Berthé reported that 2023 is witnessing a narrowing of the gap. 2023 is expected to be a better year compared to 2022. Amid the high oil price above the pre-COVID levels of 2019, the Jet fuel price continues the upward trend, going up by over $22 in one month from July to August.

On cargo, the average market share of African airlines per cargo origin is 31% Year to date. North Africa comes first with 37%, followed by East Africa with 30%. The highest cargo traffic growth year on year is in North Africa, with 21% Year to date.

Among the main challenges facing the airline industry is the issue of blocked funds. Mr. Berthé reported that the total blocked funds reported by six (6) AFRAA member airlines in fifteen (15) countries (13 in Africa and 2 outside Africa) is approximately US$339.1 million at the end of March 2023.

AFRAA has established a Blocked Funds Task Force with some member airlines to engage with the concerned States to unlock the funds. ‘We call upon governments to consider Aviation as a priority sector and reduce the level of blocked funds.’ He stated.

On intra-Africa connectivity, Mr. Berthé stated: “In as much as the connectivity level has exceeded the pre-COVID level, it still remains low with regards to the potential. 85% of flights are direct, and 15% are connecting flights. Only 21% of the direct flights are operated under the 5th freedom traffic rights.”

This is a concern because, for many airlines, the 5th freedom traffic can improve the routes’ profitability and intra-Africa connectivity.” He added.

Another major focus area challenging the industry is the affordability of air travel. “The global average GDP per capita in 2023 is $13,920. Twenty-five (25) African countries have a per capita income of less than $1,000, while only eight (8) have more than $5,000 per capita. For a given average trip length, taxes excluded, ticket fares are more expensive in Africa. On average, ticket fares are twice and thrice higher than in Europe and Asia. With high fares and lower GDP per capita, air transport is not affordable for African citizens.” Mr. Berthé emphasised.

With regards to environmental sustainability, Mr. Berthé highlighted that carbon emissions from commercial flights are set to triple by 2050 amid surging travel and freight demand. Nonetheless, emissions could be slashed through aircraft technology, operations efficiency, and alternative fuels. “AFRAA members are committed to the global industry efforts towards the reduction of CO2 emissions and mitigating the impact of aviation on climate.” He stated.

“As the global Aviation industry focuses on Sustainable Aviation Fuel (SAF), Africa has an opportunity to act as a leader in feedstock production. However, there are concerns about the SAF production in volume, accessibility at airports, and cost, which is currently high.

AFRAA is engaged to work with stakeholders on actions towards the 2050 Net Zero emissions goal.” He added.

He concluded his intervention by emphasising on the need for a collaborative approach among relevant stakeholders to achieve a successful and viable African aviation industry.

AFRAA advocacy action for practicable solutions to remedy the blocked funds situation in Burundi

On advocacy for the release of airline blocked funds in Burundi, AFRAA Secretary General – Mr. Abdérahmane Berthé and Mr. Raphael Kuuchi – Director Government, Legal, and Industry Affairs, met the Governor of the Bank of the Republic of Burundi –Mr. Dieudonné Murengerantwari, on 21 September 2023.

AFRAA Leadership was accompanied by various representatives of AFRAA member airlines with operations in Burundi that are impacted by the blocked funds situation, including: Ethiopian Airlines, Kenya Airways, RwandAir, and Uganda Airlines.

The deliberations with the Burundi Central Bank Governor on how to support the efficient operations of airlines was very fruitful. Specifically, the Central Bank committed to facilitate the repatriation of the proceeds of airlines’ sales. AFRAA appreciates the Burundi Central Bank Governor’s and his team’s openness to come up with practicable solutions to remedy the situation very soon.

The issue of blocked funds in many countries is challenging for African airlines. To address the matter, AFRAA has established a Blocked Funds Task Force with some member airlines to engage with the concerned States to unlock the funds.

“AFRAA calls upon governments to consider Aviation as a priority sector and reduce the level of blocked funds.” Mr. Berthé stated.

AFRAA participates in the SAATM PIP roadshow in Namibia

AFRAA participated in the Single African Air Transport Market

– Pilot Implementation Project (SAATM-PIP) Cluster 1 Coalition Roadshow in Namibia from 21-22 September 2023. Mr. Kimani, AFRAA’s Manager of Government, Legal & Industry Affairs represented AFRAA at the event. During the event, he delivered a presentation providing updates on the Sustainability of Air Transport Road Map Implementation from the perspective of airlines. The Road Show also covered discussions by Airports, Health, Customs, and Ministry of Trade, Tourism, and Transport representatives on the critical role they play in the implementation of SAATM. Mr. Kimani participated in a panel discussion on the theme: “Mitigation/Removal of SAATM Impediments”.

AFRAA Secretary General keynote address at the 53rd AASA AGA

AFRAA Secretary General – Mr. Abdérahmane Berthé, delivered a keynote address at the 53rd Annual General Assembly of the Airlines Association of Southern Africa (AASA).

He made a brief on the state of the airline industry highlighting traffic, connectivity and profitability performance of African airlines and articulated on AFRAA actions on blocked funds, affordability, environmental sustainability and Sustainable Aviation Fuels. On traffic performance, as at September 2023, the traffic exceeded the level of the same month in 2019 by reaching 101.4%. The traffic repartition for the first semester of 2023 was as follows:

• North Africa represented 40.1% of the total traffic, of which 17% is domestic, and 57% is directed to Europe;

• Central and West Africa represented 20.8% of the total traffic, of which 49% is domestic, and 43% of the non-domestic traffic is intra-Africa;

• Eastern Africa represented 18.7% of the total traffic, of which 45% is domestic, and 30% of the international traffic is directed to Europe;

• The Southern African region represented 20.4% of the total traffic, of which 64% is domestic. 50% of the non-domestic traffic is intra-African, mainly within the sub-region. 19% of the traffic is Intercontinental, of which 28% is directed to Europe. In terms of connectivity, the total number of intercontinental routes operated by African airlines exceeded the pre-COVID levels since October 2022. In some major airports (Nairobi, Addis Ababa, Lusaka, Cairo, Abidjan, and Lomé), the intra-Africa connectivity has reached or exceeded the pre-COVID level since December 2022. With regards to revenue losses attributed to COVID-19 impacts,

Mr. Berthé reported that the 2022 full-year cumulative airline revenue gap was US$ 3.5 billion for all African airlines compared to 2019. Though the full-year estimated revenue gap is yet to be computed, 2023 will be better.

In terms of cargo performance, he reported that the average market share of African airlines per cargo origin was 30.6% Year-to-date for August 2023. East Africa comes first with 37%, followed by North Africa with 30%. The highest cargo traffic growth year on year is in North Africa, with 20% Year to date. For the southern African region, Mr. Berthé reported that Cape Town and Harare were the top two airports in the region in terms of cargo traffic growth, year to date. The issue of blocked funds in many countries is challenging for African airlines. The total blocked funds reported in September 2023

by eleven (11) AFRAA member airlines is approximately US$391.8.

Mr. Berthé informed the Assembly that AFRAA has established a Blocked Funds Task Force with some member airlines to engage with the concerned states to unlock the funds. “We call upon governments to consider Aviation as a priority sector and reduce blocked funds,” he stated.

In terms of connectivity, the level has exceeded the pre-COVID level. However, it still remains low in regard to the potential. 85% of flights are direct, and 15% are connecting flights. Only 21% of the direct flights are operated under the 5th freedom traffic rights. “This is a concern because, for many airlines, the 5th freedom traffic can improve the routes’ profitability and intra-Africa connectivity.”

Mr. Berthé stated.

The global average GDP per capita in 2023 is $13,920. Twenty-five (25) African countries have a per capita income of less than $1,000, while only eight (8) have more than $5,000 per capita.

“A strong and consistent middle-class citizenry in the African continent is needed to boost intra-Africa traffic.” Mr. Berthé stated.

For a given average trip length, taxes excluded, ticket fares are more expensive in Africa. On average, ticket fares are twice and thrice higher than in Europe and Asia.

“With high fares and lower GDP per capita, air transport is not affordable for African citizens.” he added.

With regards to environmental sustainability, Mr. Berthé reported that in 2021, aviation accounted for over 2% of global CO2 emissions. Aviation-related emissions have grown faster than road, rail, or shipping in recent decades.

Carbon emissions from commercial flights are set to triple by 2050 amid surging travel and freight demand. Nonetheless, emissions could be slashed through aircraft technology, operations efficiency, and alternative fuels.

“AFRAA members are committed to the global industry efforts towards the reduction of CO2 emissions and mitigating the impact of aviation on climate.” Mr. Berthé added.

As the global Aviation industry focuses on Sustainable Aviation Fuel (SAF), Africa has an opportunity to act as a leader in feedstock production. However, there are concerns about the SAF production in volume, accessibility at airports, and cost, which is currently high.

AFRAA is engaged to work with stakeholders on actions towards the 2050 Net Zero emissions goal.

Highlighting that the enhancement and promotion of safety are among AFRAA’s priorities, Mr. Berthé stated that: “While we have the challenge of aviation professionals, our focus should also be on safety to sustain our business.”

He announced that AFRAA and Flight Safety Foundation (FSF) will launch the 1st Africa Safety and Operations Summit on 15 May 2024, back-to-back with the Aviation Stakeholders Convention (ASC) in Addis Ababa hosted by Ethiopian Airlines.

“At AFRAA, we stand willing and ready to collaborate to transform African Aviation into a vibrant logistic service sustaining the economic development in Africa.” He concluded.

The event was hosted by TAAG Angolan Airlines under the theme “Possibilities from Realities.”

AFRAA, in partnership with ATR hold a workshop for African airlines on the theme: ‘Leveraging airline-OEM relationships’

The workshop took place on 16 October 2023 at 14.00hrs EAT (11.00hrs UTC) in virtual format. With the objective of enabling airlines to maximise the value of investment and their relationships with OEMs, the workshop gave a fresh perspective on the support an OEM can provide with an African angle: from business planning and start-up support to network development, assistance with aircraft financing, aircraft induction and daily in-service support. Airline executives and management of the following functional areas participated:

• Strategy;

• Financial Planning;

• Network Planning;

• Operations and Support.

AFRAA-Amadeus workshop on airline retailing transformation for sustainable airline growth

In today’s rapidly evolving aviation industry, successful retailing has become more crucial than ever for airlines to remain competitive and achieve sustainable growth. The shift towards retailing transformation has firmly established itself, shaping the future of the airline and travel industry. On this backdrop, AFRAA, in partnership with Amadeus held a workshop in virtual format for African airlines on airline retailing and payments.

The workshop took place on 17 October 2023 at 13.00hrs EAT (10.00hrs UTC) in virtual format. Held under the theme: ‘Airline Retailing Transformation for Sustainable Airline Growth’, the aim of the Workshop was to enable airlines embrace this transformative shift, provide a range of valuable IT assets available for immediate adoption to kick-start the transformation with instant value, empower ongoing operations and pave the way for a more profitable and customer-focused future.

The workshop further focused on equipping airlines with insights on how to put in place a smooth and simple payment experience to convert visitors into paying travellers, manage cross-border flows, turn on new payment methods, accept payments in new markets, access fraud services, all in one place, while having full control of their strategy.

Representatives of the following functional areas from various African airlines participated:

• Strategy;

• Finance;

• Commercial.

AFRAA SG intervention at the African Aviation & Travel Innovation Summit

AFRAA Secretary General, Mr. Abdérahmane Berthé, made a keynote speech at the African Aviation & Travel Innovation Summit in Cape Town on 18 October 2023. The African Aviation Innovation Summit which is now in its second edition was staged by Kenya Airways in collaboration by AFRAA under the theme: ‘Customer Obsession in Aviation’.

In his remarks, Mr. Berthé highlighted the importance of innovation to transform and revolutionise the aviation industry. “Air Traffic will double by 2040, and digitisation will facilitate handling this growth to keep and improve customers’ experience.” He stated.

Mr. Berthé articulated on some of the innovative features that drive the progress of passengers’ experience, including:

1. Passengers’ facilitation: Processing at airports is the most challenging part of passengers’ experience. Improving passengers’ identification, check-in, security check, easy gate access, and internet availability is essential to customer satisfaction.

2. Biometrics: Biometrics is a game changer in aviation: fingerprints, iris recognition, and facial recognition. Using unique physical characteristics to identify passengers is revolutionising processes: ticketing, baggage dropping, security checks, and boarding.

3. Baggage handling: New solutions are being developed in view to facilitate baggage tracing.

4. Artificial Intelligence: AI can transform the aviation industry. AI applications in aviation include Customer Service. Distribution, Analytics, Safety Enhancement, Predictive Maintenance, Flight Planning and Optimization, Air Traffic Management, Crew Resource Management, and Security.

5. Connectivity: In-flight connectivity and entertainment have come a long way over the past few years and are used for various systems, including: internet access, aircraft position tracking, aircraft performance status and streaming movies and TV.

Noting that digitalisation and Innovation are opportunities for airlines, Mr. Berthé called upon airlines to transform and embrace these opportunities, rethink their strategies to capture the new opportunities relevant to operations and customers, integrate the

new tools into the existing business and organisation to measure and monitor customer satisfaction.

“At AFRAA, the sustainability of our member airlines is a priority. In this regard, in collaboration with AFRAA partners, we bring practical, innovative solutions to our members. Collaboration is essential to improve passengers’ experience. All Aviation stakeholders, including service providers, should work hand in hand to make the transformation effective for customers. For example, the One-Stop-Security concept can only be implemented by collaborating with regulators, airports, and airlines.” He concluded. He further participated in a panel discussion on the theme: “Tailwinds of Transformation: Creating an Enabling Environment for End-to-End Customer-Centric Aviation”. The panel comprised of the following executives:

• Allan Kilavuka, CEO & GMD – Kenya Airways;

• Abdérahmane Berthé, Secretary General – AFRAA;

• Patrick Roux, Chief Executive Officer – SkyTeam;

• Mr. Shaheed Regal, Ag. General Manager – Airport Company of South Africa (ACSA).

AFRAA in partnership with SITA held a three-tiered workshop for African airlines

The workshop took place on 24 October 2023 at 13.00 hrs EAT (10.00 hrs UTC) in virtual format. Held under the theme: ‘enhancing airline profitability, call collection and baggage processes’, the workshop delivered a set of tools to allow African airlines address the changing passenger expectations through flexible cloudbased platforms, elevate their cost management processes to bolstered profitability and get insights on breakthroughs in the

world of baggage to increase operational efficiency and passenger satisfaction.

Representatives of the following functional areas from various African airlines participated:

• Operations;

• Finance (Cost/invoice Control Team);

• Commercial;

• Ground Handling.

Free Routing Airspace in Africa inches closer to reality with trial flights

kicking off on 2 November 2023

Cooperation, collaboration, and commitment of stakeholders, including CANSO, AFRAA, IATA, ICAO, and Air Navigation Service Providers (ANSPs), made free routing flights a reality for the first time in Africa on 2 November 2023. In the Free Routing Airspace (FRA) Trial kick-off workshop, participants coordinated with all relevant operational services and secured approvals for the two trial flights. Shortening the flight time, flights ET935 and KQ 508 operated safely outside the existing routes directly from Addis Ababa to Abidjan and Nairobi to Accra, respectively. Implementing the Free Routing Airspace will annually bring

significant cost savings to the participating airlines and will support a sustainable future for the African Industry. Cumulating over a year, the shortened flight time on one of these one-way flights avoids burning 292 metric tonnes of fuel, prevents the emission of 340 metric tonnes of CO2, and reduces the operator’s fuel bill by an estimated USD310,000. Assuming similar savings on the return leg, extending free routing flights to 20 daily flights, the operators’ CO2 footprint will be reduced by 5 million metric tonnes, and the airlines will cut more than USD 1.2 million from their fuel bill.

The project kick-off workshop was graciously sponsored by AFREXIMBANK. Various ANSPs provided navigation services to the historic flights, including: Ethiopia CAA, Kenya CAA, CAA Uganda, RVA (DRC), ASECNA, NAMA (Nigeria), and Ghana CAA. The FRA project is one of the five LAB Projects of the African Aviation Industry Group African Aviation Sustainability Laboratory to revamp Air Transport in Africa that was held from 27 June to 1 July 2022 at AFRAA Headquarters in Nairobi, Kenya.

The next trials in the first quarter will contribute to making the FRA a reality in 2024.

AFRAA-Aviapro workshop on data-driven analysis for enhanced decision making for network and fleet, 9 November 2023, virtual format

Network and airport planners, fleet operators, and lessors constantly need to review their business plans and evaluate options to further increase revenue potential. In aviation, more data driven analysis is required to yield results that can be assessed quickly to support timely business decisions. On this backdrop, AFRAA in collaboration with AviaPro Consulting held a workshop on data-driven analysis for enhanced decision making for network and fleet. The workshop took place on 9 November 2023 at 14.00hrs EAT (11.00hrs UTC) in virtual format.

Held under the theme: ‘Data-driven analysis for enhanced decision making for network and fleet’, The workshop illustrated how digitisation, agile processes, and modular technologies can deliver high value analysis which is easy to use, affordable available in a timely manner. The workshop further demonstrate how African airlines can use AviAnalysis online platform to have access to important analysis results in the areas of aircraft performance, aircraft operating economics, and passenger demand analysis.

The workshop was attended by the following personnel from African airlines:

• Network Planning;

• Network Development;

• Strategy;

• Commercial;

• Corporate Development.

AFRAA and

Afreximbank

agree to enhance collaboration for development of Africa’s Air Transport Industry

Cairo, 14 November 2023: The African Airlines Association (AFRAA) and the African Export-Import Bank (Afreximbank) today in Cairo signed a memorandum of understanding (MoU) to concretise cooperation toward the development of a safe, reliable, efficient and environmentally sustainable air transport system in Africa.

Under the framework of the MoU, signed by Abderahmane Berthé, AFRAA’s Secretary General, and Kanayo Awani, Executive Vice President, Intra-African Trade Bank, at Afreximbank, AFRAA and Afreximbank will coordinate activities, joint projects and programmess, exchange of information and data, and best practices to facilitate the achievement of shared objectives.

The key areas of collaboration include:

i. Aviation safety and security;

ii. Environmental sustainability initiatives;

iii. Air Transport Liberalization – implementation of SAATM Joint Prioritised Action Plan;

iv. Economic sustainability of air transport – cost reduction, taxes and charges;

v. Airline consolidation;

vi. Human capital development and capacity building;

vii. Facilitation of trade, business and tourism;

viii. Exchange of statistical data, information and best practices.

Speaking at the signing ceremony, Mr. Berthé stated: “AFRAA and Afreximbank share a common goal to support a sustainable air transport system in Africa and thereby effectively contribute to the continent’s socio-economic development, trade and integration.

Signing this MoU will facilitate the mobilisation of necessary financial resources to undertake projects that will benefit African airlines. “Traction on collaborative actions is on-course. For the first time in Africa, trials for the free routing flights became a reality on 2 November 2023, thanks to the funding by Afreximbank and technical support by aviation experts. Flights ET935 and KQ 508 operated safely outside the existing routes, directly from Addis Ababa to Abidjan and Nairobi to Accra, respectively. Implementing the Free Route Airspace (FRA) will annually bring significant cost savings to airlines, shorten travel times for passengers and put less CO2 emissions into the environment. The trials, which started in November 2023, will continue to provide critical data to accelerate the FRA implementation in the entire African Airspace, improving air navigation efficiency,” added Mr. Berthé.

Ms. Awani noted that AFRAA and Afreximbank shared a common goal of promoting the development of a safe, reliable and environmentally sustainable air transport system in Africa in order to effectively contribute to the continent’s socio-economic development, trade and integration. She welcomed the MoU and expressed the Bank’s pleasure at the successful free routing trials, saying that implementation of FRA in Africa will contribute towards ensuring an efficient aviation market to support intra-African trade and tourism which was critical to the full realisation of the objectives of the AfCFTA.

About AFRAA

The African Airlines Association, also known by its acronym AFRAA, is a trade association of airlines from the member states of the African Union (AU). Founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry. The Association envisions a sustainable, interconnected and affordable

Air Transport industry in Africa where African Airlines become key players and drivers to African economic development.

AFRAA membership of 54 airlines cuts across the entire continent and includes all the major intercontinental African operators. The Association members represent over 85% of total international traffic carried by African airlines. Follow us on Facebook, LinkedIn, Twitter and YouTube.

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, ‘the Group’).

Training conducted in 2023

AFRAA training conducted the following courses in the year 2023:

1. Safety Management Systems Course

This course was conducted by AFRAA on 30 May – 2 June for participants from National Institute of Transport in Dar es Salaam, Tanzania. This course was a physical course attended by 25 participants. At the completion of the course, participants were able to apply knowledge to assess an SMS to identify areas of excellence and improvements, formulate actions and assess the potential impact of safety related issues for an organisation, Appraise the organisational context when considering safety improvements, create defensible safety positions to support corporate decision-making, while reducing safety risk, develop and implement actions to strengthen key safety culture drivers supporting the continuous improvement of an organisations’ safety performance, differentiate contrasting leadership styles and their influence in implementation and ongoing effectiveness of safety initiatives.

2. Crew Resource Management for Instructors Course

AFRAA conducted this course on 8-12 June 2023 for National Institute of Tanzania in Dar es Salaam, Tanzania. 24 participants attended the in-person course. Through this course, participants were able to define and implement the basic rules of good CRMI Instructional Techniques, demonstrate how to effectively, prepare for, start, conduct and wrap-up a training event, apply basic principles of learning and active training and demonstrate appropriate CRMI Instructional techniques, design a CRM Course module template and evaluate the effectiveness of a training event and skill as a facilitator.

3. Root Cause Analysis Course

This virtual course was conducted by AFRAA to Astral Aviation on 24-27 July 2023. 10 participants attended the training. At the end of the course, the participants were able to describe the principles of root cause analysis, explain the objectives of root cause analysis as a procedure to find and evaluate the causes of problems, understand regulatory requirements and standards, describe the problem solving process, use problem cause data collection tools, apply root cause analysis tools and develop efficient corrective action plans.

4. Training Needs Assessment Course

AFRAA conducted this physical course to Rwandair on 7-9 August 2023. The course had 15 participants. This course allowed participants to apply the basic principles of an effective needs assessment process to a performance improvement need in your organisation and develop a Training Needs Assessment Plan.

5. Quality Management Systems Course

AFRAA conducted this course for National Institute of Transport on 30 August – 2 September 2023. The physical class had 24 participants. At the end of the course, the participants were able to be conversant about the evolution of quality and quality assurance as applied to aviation, understand the quality requirements of key regulatory bodies and national authorities such as ICAO, ISO, IATA, be knowledgeable about specific quality requirements for aviation and how to merge them in an integrated Quality Management System, apply quality management principles to your organisation and create a quality culture and know how to assure and audit for quality.

AFRAA data

African airlines’ RPKs evolution

• 85 million PAX carried in 2023 (AFRAA estimations.

• In October 2023, the traffic will exceed the level of the same month in 2019, to reach 105.3%.

• In August 2023 (final adjusted data):

√ Domestic traffic represented 34% of the passengers carried.

√ Intra-African passengers carried represented 29%

√ Intercontinental traffic was 37%.

Intercontinental Intra-African Domestic

Seats and passengers distribution

Seats Passengers

African airlines PAX carried

90% traffic recovery compares to 2019

• Estimated revenue loss for 2022 USD 3.5 billion, representing 20% of 2019 revenues

• Estimated reveune loss for 2023 USD 1 billion, 6% of 2019 rvenues

• Estimated revenue loss for Q2 2023: USD 0.2 billion and Q3 2023: USD 0.2 billion

The percentage of international routes operated by African airlines exceeded the pre-COVID level since October 2022. The numbers are in an ascending trend since the COVID-19 disruption. We can observe a seasonality, with the number of routes increasing from May to July, and in December which include peak seasons.

The global Intra-African connectivity is estimated to have reached the pre-COVID level since December 2022. However, the number of existing connections is far lower than the real potential. We can see a slight improvement from March to April.

Source: AFRAA/OAG