Low-Cost Carriers Pose Threat to Africa’s National Airlines

Indications have emerged that African airlines might face tougher times following the entry of new low cost carriers into the country’s aviation industry.

Fastjet is one of the low-cost airlines launching or expanding operations in Africa as they seek to capture middle-income travelers.

The new airlines hope to undercut larger carriers by offering replicating the model used by European airlines such as easyJet and Ryanair.

Astudy by consultants Intervistas showed that where low-cost routes have launched in Africa, prices have plunged by around 40 percent and passenger numbers have soared by almost half.

Also IATA revealed that Africa’s aviation industry is growing at 4.7 per cent, faster than any other region. Passenger numbers are expected to double to 300 million in the next two decades.

However the growth is still on the low side as the widespread of low-cost aviation is hampered by strict government regulations and high taxes.

Low-cost airlines say governments block competitors from flying international routes to protect state-owned airlines such as Kenya Airways, South African Airways and Ethiopian Airlines.

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By 9jatravel / Administrator, bbp_keymaster

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on Sep 22, 2015

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