STRATEGY

How Africa can cushion its aviation sector in post-Covid recovery

Partnerships with other industries remains key for airports.

In Summary

•The aviation industry has suffered huge losses since the onset of Covid-19 pandemic because of insufficient domestic airport capacity.

•Countries urged to develope small airports, airstrips and airdromes.

KAA board member William Ole Maiyani, Transport CS James Macharia, KAA MD Alex Gitari and ACI Africa president Emmanuel Chaves at PrideInn Paradise Hotel in Mombasa on Monday.
PARTNERSHIP KAA board member William Ole Maiyani, Transport CS James Macharia, KAA MD Alex Gitari and ACI Africa president Emmanuel Chaves at PrideInn Paradise Hotel in Mombasa on Monday.
Image: JOHN CHESOLI

Kenya and other African countries must focus more on domestic intra-country airport infrastructure to cushion their aviation industries from unexpected international crises, Transport CS James Macharia has said.

Macharia intimated the aviation industry in Kenya and most other African countries suffered huge losses at the onset of Covid-19 pandemic because of insufficient domestic airport capacity.

“When things like Covid come or, God forbid, there is war across the globe, you look inside your own country for survival," he said on Monday.

“So, for airports, you have to make sure that you develop your domestic intra-country capacity because when we could not fly because of Covid, people looked into domestic,” he added.

He spoke at the opening of the 67the Airports Council International conference for Africa , taking place in Mombasa.

The conference brought together over 300 stakeholders in the global aviation industry to discuss how to facilitate air transport industry recovery post-Covid.

He said small airports, airstrips and airdromes must be developed because they come in handy during tough times.

“When the going gets tough, these will help make sure your domestic business continues to thrive,” said the CS.

Macharia said one of the best ways to ensure this happens is enhancing partnerships across the board.

“Airports must know that airlines are the biggest clients they have and through airlines, they have sectors like tourism,” said Macharia.

He said establishing lasting partnerships with other industries and industry players is key for airports.

“Because when the chips are down, it is those partnerships that will bring you back up. Airports and airlines should not see each other as rivals, fighting all the time. They should complement one another,” said Macharia.

He called on airports to look into Public Private Partnerships to support infrastructure development.

He said depending on government will slow down growth because most  are overstretched in terms of revenue, and have alot of red tape.

“Airports are the most guaranteed business models so when you depend on government, where about 15 or 20 ministries are competing for limited capital, you will end up losing,” said Macharia.

Good models that generate good revenue are easy to sell to private entities that can partner with airports, he said.

ACI Africa president Emmanuel Chaves said building sustainable air transport industry in the continent requires good management of airports, regardless of size and status, as business entities.

ACI Africa is composed of 70 members in 53 countries managing more than 260 airports and has 46 business partners.

The African Airport Development Program, ACI Africa’s lead program, is growing from strength to strength and is now offering expert training for its members.

The program helps African airports achieve excellence in airport services, and has so far trained over 400 African personnel in the airport services.

Kenya Airports Authority managing director Alex Gitari said cooperation among airports and other industry players is the way to go.

“Technology and innovation alone will not make for successful recovery of the international air travel. Collaborations and solid partnerships, which this event aims to foster, are equally important,” said Gitari. 

KAA manages nine airports, airstrips and airdromes in the country.

The country's two main airports-Jomo Kenyatta International Airport (JKIA) and the Mombasa International Airport (MIA), are the most active with JKIA enjoying 59 direct connections globally, out of which 37 are in Africa.

RECOVERY 

KAA chairman Isaac Awuondo, who was represented by KAA board member William Ole Maiyani, said the aviation industry is expected to take a while to fully recover.

He said the Covid pandemic has caused shifts in the aviation industry and players must find ways to proactively respond to each of the shift.

“To begin with, the leisure travel segment and the domestic market is recovering faster, which is an opportunity for airports serving a large domestic market and offering a unique tourism product,” said Awuondo, in a speech read on his behalf by Ole Maiyani.

Business travel and the international market, will take a while longer to fully recover, he noted.

“It is evident that tourism has become a key enabler of growth within the aviation industry,” said Awuondo.

Cargo has however shown its resilience and has been a lifeline for the industry.

The pandemic has caused an increased focus on supply chain resilience and the opportunity for the rapid development of non-aeronautical revenue for airports.

“This gives room for a diversified approach and a strategic focus on cargo business,” said the KAA chair.

For instance, he noted, leveraging on the digitisation transformation as an enabler of travel experience.

Touchless biometrics will help reduce waiting time while improving passenger experience.

“E-commerce and digital cooperation between airlines and airports will boost retail opportunities and ensure maximisation of revenue leading to financial stability,” said Awuondo.

He said airports need to tap into new sources of revenue and build their brands aspects such as concentrating on loyalty programs, strategic pricing and stronger partnerships with tourism associations.

“Equally, airports need to expand target groups to include non-travellers and arrival passengers when diversifying their retail offering,” said Awuondo.

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