This archive report was first published on 15 September 2021.
With less than 3% of global air traffic, Africa's aviation industry has struggled to consolidate, leading to limited airline partnerships and a lack of market growth. However, stakeholders believe that consolidation is key to the industry's sustainability and growth.
On September 14, 2021, the African Airlines Association (AFRAA), Lufthansa Consulting, and Kenya Airways hosted a high-level workshop to discuss the challenges and benefits of airline consolidation in Africa.
AFRAA Secretary General Abdérahmane Berthé emphasized the need for new approaches to doing business in the face of the COVID-19 pandemic. He stated, 'A crucial element in the success of African airlines is consolidation and collaboration. The engagement of States, airlines, and all relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa.'
Kenya Airways CEO Allan Kilavuka highlighted the importance of learning from the experiences of other regions and adopting new business models. He said, 'Consolidation and collaboration are essential ingredients for resilience and sustainable business operations of airlines.'
Lufthansa Consulting's Catrin Drawer emphasized the need for new solutions to address the challenges of the 'New Normal.' She stated, 'We require new business models, meaningful innovations in operations, adaptive management open to change, a growing true synergistic relationship between airlines and other relevant stakeholders.'
The workshop brought together over 200 participants, including airline CEOs, C-level representatives from airports, and other African air transport decision-makers. The event resulted in several key recommendations for industry stakeholders, including the consideration of various consolidation models, the implementation of corporate governance structures, and the call for uniform regulations and cooperation among airlines.
