African Roundup:    October - November 2018

The Fastjet/Solenta relationship deepens. Solenta now controls Fastjet. A mix of recent financial transactions has resulted in Solenta increasing its shareholding to 54% and its voting share holding has risen to 60%.

Fastjet, since its inception in 2012, has never been far from cash difficulties.  In July this year it feared for its survival beyond the end the end of October followed by a familiar appeal to shareholders. US$10m was secured but a further, more frantic, appeal followed to ensure the continuation of business into 2019. This too was successful with a complex mix of transactions adding USD40m to the equity base. Details of the financial restructuring include Fastjet buying from Solenta the current leased 4x ERJ145s and settlement of various debts and loans.

Fastjet changes have also happened in Tanzania and Zimbabwe.  In October Fastjet announced its withdrawal from Tanzania – its ‘birth country’.  Mounting frustration with the foot-dragging of the TzCAA in granting new route licences and regulatory approvals for ATR72-600 operations was the cause.  But the familiar parrot logo will not disappear: a conditional agreement has been reached with local management to buy the company - for US$1 – and to continue operations under a franchise agreement.    In Zimbabwe Fastjet is exercising its right to acquire the current 51% holding of Zimbabwean interests.  The shares will switch to a new Zimbabwean company under Solenta control.  Approval for increases to Harare-Bulawayo frequencies has recently been secured.

Fastjet and Solenta now believe they are better prepared to weather an entry of a new competitor to their markets or, alternatively, prepared for an aggressive response from existing operators when they launch, next year, into the highly competitive South Africa LCC market.

The sometimes overlooked Horn of Africa is experiencing a burst of operations.  The September peace deal signed between Ethiopia and Eritrea has resulted in Asmara, after a 20 year gap, now seeing daily Ethiopian Airlines B737-800s linking with Addis.  Eritrean Airlines with its single B737-300 also flies the route, 4pw.  Ethiopian has talked of assisting Eritrean to grow including possible investment. Routing some European services to Europe via Asmara is under evaluation subject to 5^th Freedom traffic rights clarification.

In similar vein Air Namibia is looking at new routings via Harare, Luanda or Lagos, again subject to traffic rights.  Subsidies for Frankfurt flights continue as a point of open conflict between Government and carrier.  Air Namibia uplifts are under pressure from the increased presence of foreign operators at Windhoek, eg Qatar Airways and KLM.          

Subsidy conflict between Government and SAA also continues.  Similar to Air Namibia, in a search for revenues, the carrier is looking at routing some long-haul ops via Accra, for example Washington, again subject to 5^th Freedom rights being available.  But Government voices are increasingly hostile.  Public Enterprise Minister Pravin Gordhan has said “perpetually unprofitable long-haul ops will cease – no holy cows”.  And new Finance Minister Tito Mboweni has been forthright in saying “we need think about closing it (SAA) down”. For the moment USD349m is being provided to cover debts maturing up to March next year.

EAST AFRICA

Air Tanzania  After an 8 year banishment re-admission to the IATA Clearing House has been secured, debts have been repaid,    (Oct 2018)

Air Tanzania plans launch of B787 Guangzhou ops from Feb next year. (Nov2018)

Eritrean Airlines Asmara-Addis B737 frequency is to rise to 4pw from 19 Nov. (Nov2018)

Ethiopian Airlines  In November is to re-start to Mogadishu, initially with 3pw, Q400. Regional conflict led to services being halted 41 years ago.  But, Kaduna services are to be withdrawn following poor performance since launch last August.  Not a big surprise although worth trying.(Oct 2018)

Ethiopian Airlines  from December Asmara was to be added to the routing of some existing Addis-Europe flights, including London, but traffic right difficulties have delayed decisions. (Nov 2018)  

Ethiopian Airlines On 1 Dec is to launch Addis-Istanbul-Moscow 3pw ops. Also in Dec is to switch Dublin for Lome on the 3pw Addis-Los Angeles routing.  (Nov2018)

Ethiopian Airlines there are reports of a possible agreement with Nepal Airlines and the establishment of a Kathmandu hub, – its first outside Africa.  (Nov 2018)

Ethiopian Airlines launches Mogadishu 3pw ops and within days ups the frequency to daily. (Nov 2018)

Jambojet (Kenya Airways LCC subsidiary) is to lease an additional 2xQ400 for mid-2019 delivery to boost the fleet from 5 to 7 of the type.  The leasing of a further 2 is being discussed.  (Oct2018) 

Jambojet (Kenya Airways LCC subsidiary) Burundi blocks approval of Bujumbura flights. It is unhappy with the planned turboprop  Q400 equipment.  Kenya Airways continues to fly daily with an E190.  (Oct2018)

Jambojet (Kenya Airways LCC subsidiary) CEO Willem Hondius is to leave the company.  New CEO Allan Kilavuka, currently with General Electric Kenya, is to start in January. (Nov2018)

Sudan Airways as part of an ongoing restructuring exercise staff numbers have fallen from 1600 to 470.   A new operational plan presented to Govt this month by Airbus has resulted in approved funding for new A320s.  (Nov2018)

SOUTH / CENTRAL AFRICA

Air Botswana Has taken delivery of the 1^st of 2x ATR72-600 and mentions a possible new route to Maputo. The aircraft sports a new Air Botswana livery. (Nov 2018)

Air Namibia seeks a capital injection of USD175m-210m to gain profitability.  Frankfurt and Luanda are the two big loss-making routes. A reduction of Frankfurt frequencies would release the second A330 for more profitable deployment.  Evaluation is underway to convert the leased 2x A330s and 4x A319s to ownership to reduce operating costs. New route possibilities are China via Luanda and London via Accra or Lagos.  (Oct2018)

Air Namibia  cancels Harare ops following the impounding of an ERJ145 for 24hrs in an ongoing legal case.  Operations restarted several days later. (Oct 2018)

Air Zimbabwe Grant Thornton, the recently appointed administrator, is searching for potential investors and for someone to lease one of the 2x B767-200s.  Action, via a Creditors Meeting, is seeking to determine the accuracy of the oft-repeated debt of US$320m (Nov2018)

Comair (South Africa) is to move all fleet maintenance offshore to Lufthansa Technic. Poor scheduling performance by current provider SAA Technical has forced the move.  (Oct2018)

Congo Airways (DRC) is to lease 4 aircraft from Ethiopian Airlines; 2x B737-800 plus 2x Q400.  Domestic and regional network and frequency growth is the aim. (Oct 2018)

Congo Airways (DRC) plans Dec launch of Kinshasa-Douala-Cotonou. (Nov 2018)

Ethiopian Airlines Mozambique plans 1 Dec launch of domestics with Q400 and B737 flying under Ethiopian subsidiary ASky flight numbers.  (Oct 2018)

Fastjet (PLC) “Withdraws funding” from Tanzania effectively signalling the end of operations in the loss-making country.  CEO Nico Bezeidenhout cites the rejection of domestic new route applications and the continuing wait for ATR72-600 operational approvals as the cause. In July shareholders provided an additional US$10m to enable operations to continue to the end of the year. A further need for additional capital will however arise at end-October “to enable Fastjet to continue to operate”.  An operating loss of US$14.6m was reported for the 2018 first half.  (Oct 2018)

Fastjet (PLC) raises a further US$40m from shareholders. Payback day receeds. From this total major shareholder Solenta increases its voting-share holding to 60.2% and sells to Fastjet the currently leased 4 ERJ145s. Solenta now takes control of Fastjet.  (Nov2018)

Fastjet (PLC) additional aircraft will be acquired for the anticipated launch of South African operations next year. Federal Air, using its own AOC, will be the operator under a brand licencing agreement. (Nov2018)

Fastjet (Tanzania) a provisional agreement has been reached with Tanzanian management to purchase, for US$1, and relaunch the company as an independent franchisee.   The 3 ATR72-600 acquired for Tanzanian operations will be early-returned to the lessor. (Nov 2018)

SAA is to receive US$349m from Government to cover debts maturing up to March next year. Most domestic and regional ops are now profitable. Public Enterprises Minister, Pravin Gordhan, recognizes this but says persistently loss-making long-haul ops will cease – ‘no holy cows’. Before year-end SAA and SA Express are to present plans for further integration . A decision is awaited on the proposed merger of the 2 carriers. (Nov2018)

SAA Finance Minister Tito Mboweni says the airline, despite recent progress, is still failing to generate sufficient cash to service debts making it impossible to attract an equity partner. “We need to think carefully about closing it down”, he added. (Nov2018)

SA Express is to receive US$83m from Govt. The application was for US$123m. (Nov2018)

SA Express plans to have the full fleet of 21 aircraft re-certified and operational in January following the withdrawal of their AOC and other approvals in May.  Network changes will focus on routes that “almost guarantee commercial returns” (Nov2018)

TAAG in a fleet replacement/modernization plan looks to add 6x Q400 plus other medium-haul aircraft in 2019 plus several B787s. They will see service from the near-complete new Luanda Airport.  The current fleet is 5x B737-700 plus 8x B777-200/300.  (Oct2018)

TAAG (Angola) On 29 Oct launched Luanda-Brazzaville-Kinshasa B737-700 ops and plans imminent launch of Luanda-Lagos services, also B737.  (Nov 2018)

Zimbabwe Airlines   anti-corruption regulators launch an investigation into the acquisition of 4 ex-Malaysian Airlines B777s and 3 ERJ145s  (Oct2018)

Zimbabwe Airlines one B777-200ER has been reclaimed by owners, Jet West (USA) due monies not paid.  Govt questions Zimbabwe Airlines’ ownership in relation to proposed merger with Air Zimbabwe (Nov2018)

WEST AFRICA

Africa World Airlines (Ghana) majority shareholder HNA Group of China has started to sell its entire portfolio of overseas aviation holdings as it struggles with onerous debt.  No mention yet of the effect on the AWA holding.  (Nov2018)

Air Burkina has taken delivery of its first leased Emb195.  A second plus an Emb170 will follow before end-January next year.  (Nov 2018)

Air Peace (Nigeria) orders 10x B737-Max 8s and plans Lagos-Dubai and Sharjah ops before year-end.  Aircraft number 5 of a planned 6x ERJ145 fleet is received. (Oct 2018)

Air Peace (Nigeria) selects Asaba, Delta State, to be its new base.  (Oct 2018)

Air Senegal receives of the first of two A319s ordered earlier this year.  Expansion of regional ops is the objective. Abidjan, Cotonou and Praia are named.  (Nov2018)

Air Senegal plans for a January launch of Dakar-Paris ops using the first of 2x A330-300neo currently on order.  (Nov2018)

ASKY (Togo) eff this month expanded Q400 ops to include Bamako, Conakry, Dakar and Banjul.  Current fleet, all leased from shareholder Ethiopian Airlines, 6x B737-700-800 plus 2x Q400.  (Oct2018)

Camair-Co considers increasing the fleet to meet extra demand next year.  Cameroon is to host the football 2019 African Cup of Nations to be played in June/July. (Nov2018)

Guinea Airlines further to the MoU signed with Ethiopian earlier this year operations are planned to start before this year-end.  A likely leased Q400 from Ethiopian will first fly domestic routes.  Ethiopian is to provide comprehensive support. Privately-owned carrier.  (Oct2018)

Overland Airways (Nigeria) domestic carrier launches regional ops to Cotonou and Niamey with 9 strong fleet of ATR42/72 and Beech 1900Ds. (Oct 2018)

RoyalFly-GH (Ghana) privately-owned start-up, born out of the ashes, including the AOC, of Fly540 Ghana in 2015, plans a 1Q2019 launch of domestic and regional ops. (Oct 2018)

NORTH AFRICA

Air Arabia Maroc (Morocco) plans June 2019 launch of Tangier-Lyons ops (Oct2018)

Royal Air Maroc has operated its last B747 flight. All 4 of the type have gone. (Oct2018)

Royal Air Maroc plans new route from Casablanca to Abuja next March. (Nov2018)

Royal Air Maroc orders an ATR72-600 to raise the fleet to 6.  Delivery next month. (Nov2018)

NON-AFRICAN AIRLINES

British Airways after a gap of nearly 10 years has returned to Durban with a 3pw B787-8 schedule operating overnight southbound , returning as daylight flights northbound.

 It has also added 4 weekly B788s to its twice daily (nightly) A 380 services. The new flights return northbound as early morning daylight departures at 0740/50  arriving at Heathrow 1715/25. Unlike Emirates first hubbing to the world departure at 0925 this allows for no same day feed at the Johannesburg end, although it offers clear very early morning roads to the airport for local traffic. It does though give a wide range of UK domestic, European and a couple of USA  connections at the London end.

Brussels Airlines , ever the Africa specialist, plans Jan 2019 increase Banjul frequencies from 4pw to daily. Plus, from April, Accra and Lome frequencies will rise to daily plus Monrovia and Freetown to 5pw.(Oct2018)

KLM switches to the B787-10 for its long-running Amsterdam – Kilimanjaro - Dar es Salaam route.  (Oct 2018)

Turkish Airlines plans to launch to Abidjan in April 2019 with B737-800s  (Oct 2018)

MISCELLANEOUS

Botswana in a positive move joins the growing list of countries granting visa on arrival for all AU citizens.  (Nov2018)

Ethiopia plans are being drawn up for a new airport to serve Addis Ababa, 48kms distant.  (Oct2018)

Ethiopia grants all AU citizens visa-on-arrival entry recognizing the growing volumes and value of inter-regional travel.  Rwanda does likewise.  (Nov2018)

Ghana Accra’s Kotoka Intl Airport’s new USD275m Terminal 3 has opened.  ACSA, South Africa, has a 5yr Technical and Operations Agreement. (Oct 2018)

Ghana the process of establishing a new national carrier is “far advanced” with Ethiopian, Air Mauritius and SAA among others each bidding to be the strategic partner. A partner decision is due in Dec. Securing FAA Cat1 status enabling direct Ghana-USA flights is a priority (Nov2018)

Guinea, Sierra Leone and Liberia governments have signed MoU to create a regional carrier to be called Air Mano.  No start date announced.  (Oct 2018)

Libya President decrees a 183% surcharge on dollar payment for air tickets. (Nov2018)

Namibia Windhoek’s Hosea Kutako Airport terminal is to undergo a US$17m upgrade with completion late next year.  (Nov2018)

Zimbabwe Govt commits to pay US$4m per month to carriers with blocked funds. The total withheld: US$150m. (Oct 2018)

John Williams

November 2019

World Travel Market , London, 2018 ….

Yes, it’s still in business. Despite continuing mutters about its high price, value for time and money, London’s World Travel Market was back last week at the Excel exhibition centre.

Some of the traditional exhibitors have scaled back or gone entirely. A lot of the names and people are new as generations move on. New businesses and people need a platform to show their faces to start building up the relationships which will bring in the money. Hopefully this is what’s happening.

The first surprise was to see the Palestine stand.  The second was the long queue waiting to step onto their carpet; a queue that continued to grow for several hours.  Banksy, the street artist, was the attraction.  He, apparently, has an interest in a local hotel.  The stand displayed two large pieces of his work and being given away to everyone were ‘collectable’ Banksy prints.  Certainly different to collecting armfuls of brochures.

The second surprise was the central positioning of the Africa stands.  Years of banishment to a remote end of hall area were but a memory.  How areas are allocated is a mystery.  But, be it chance or influence that determines it, Africa benefitted this year. Positioned between the big-hitter stands of the Gulf countries and India, Africa had become part of the tourism Premier League. The passing footfall is high and simple awareness of the existence and location of Rwanda, Malawi and other lesser known countries must have risen amongst passers-by.

The quality of the African stands seemed to benefit from the new location. The historic large floor areas were becoming ever more sparsely populated in recent years.  Fewer tour operators were taking space each year and any sense of business being negotiated was dissipating.  Kenya was becoming subject to this sometimes desolate appearance.  But this year the African stands were smaller and looked busier as a result.  The design and appearance of the stands also seemed to be higher. They were certainly not outshone by the traditional vast expenditure of the neighbouring Gulf stands.

Sudan was a newcomer.  Mali was there for a second time.  Many smaller countries, eg Sierra Leone, Sao Tome and Swaziland were present, the last struggling with its new name, ‘Eswatini’.   Rwanda had a big presence, so too did Tanzania.  The latter needing the space to display a huge picture of their new Boeing 787. Senegal had the most lively and engaging representative; Senegalese herself and a Glasgow University student she bubbled with enthusiasm for her country and for the WTM experience.

But, subjectively, the overall numbers seemed to have again declined.  Escalating stand costs are regularly mentioned but the increasingly dated site itself has unchanging shortcomings and could do with bringing into the 21^st century. Access via the DLR is far from an attractive welcome to London for attendees.  Lunch is always a problem. Old fashioned cafetarias ,extinct in most places, long queues, indifferent food, temporary staff and woefully limited seating space.  WTM is primarily a networking event.  Attendees need to meet, talk and socialize informally as well as on their stands and they need pleasant places to do it. The organization here simply does not allow for this.

But the Palestine stand and its Banksys will stick in the memory…

John Williams  9 November 2018

African Roundup   August - September 2018

Nigeria Airways has been stopped in its tracks.   The project to launch a new national carrier, announced in July and scheduled for launch this December, has been ‘suspended’ by Government.  No reason or qualification has been given. It seems reasonable to interpret ‘suspended’ as ‘cancelled’.   Why?  With much fanfare and supporting PR activity the project was announced at this year’s Farnborough Air Show with negotiations for an initial 5 aircraft fleet of B737Max and A330s.     Start-up capital needs were estimated to be USD300m, spread over 3 years.   USD300m, if an accurate amount, becomes even more substantial when early years’ operating losses are added plus other ‘contingencies’.  Could it be that, for perhaps the first time, a government faced with such a decision has decided the costs are too high and the benefits too questionable.  If so, it just might prompt other governments to review their plans for new national carriers.  In April next year a reborn Uganda Airlines is to take to the skies.  Each month the date slips a little but 4 new CRJs have been ordered for 1Q2019 delivery even though discussion continues within Government on the source of the finance and the scale of benefits.  Likewise, a reborn Zambia Airways is scheduled for launch in January next year in a joint venture with Ethiopian Airlines.  As a first step the Zambian Government must fund its 55% shareholding in the USD30m venture.  And this at a time when Zambian indebtedness to foreign countries is ballooning and the recent cancellation of all aid by the UK and others might suggest that a new national carrier is not a priority……

Ethiopian Airlines’ expansion continues apace – revenue growth, fleet expansion, aircraft maintenance facilities and the imminent opening of much improved passenger facilities at Addis Ababa, is an impressive achievement.  The CEO has described 2017-8 as ‘a notable year’ with 46% revenue growth and fleet expansion passing the 100 aircraft total.  He forecasts continued ‘fast growth’ for this year.  Support for new carriers across the continent will continue, for example, the recent agreement for joint development of new Tchadia Airlines to be based in N’Djamena.  Investment in Djibouti Airlines is also under discussion.  CEO Gebremariam explains this expansion of links with other local carriers as ‘acting in line with the AU’s goals for greater economic integration’.

The merging of Kenya Airways and Nairobi’s Jomo Kenyatta Airport (JKIA), already approved by Government, continues under discussion. The current proposal is for the creation of a Holding Company, to be managed by Kenya Airways, being granted a 30 year concession to run the airport.  All current JKIA staff will transfer to the new company.  The stated objective of the move is to improve the airline’s competitive position in relation to the Gulf and other foreign carriers. The degree of influence Kenya Airways might have over the granting of traffic rights to it’s competitors could be contentious.  Fastjet’s recent experience has been salutary.

Government has moved against Air Zimbabwe.  Current debt is estimated at US$320m.  The Board has been sacked and a caretaker administrator appointed; Chartered Accountants, Grant Thornton. CEO Joseph Makonise remains in place in addition to his existing management team.

And back to Nigeria…  just days before Government pulled the plug on Nigeria Air, Air Peace placed an order with Boeing for 10 new B737-Max8s.  They have also recently received 2, currently unutilised B777s.   An expanded regional and international operation seems likely.

EAST AFRICA

Air Tanzania anticipates delivery of its second B787-8 in 2020 followed by the launch of London services shortly thereafter.  (Aug 2018)

Air Tanzania at the end ofAugust launched Dar-Kilimanjaro-Entebbe 4pw Q400 operations plus 3 weekly on a Dar-Kigoma-Bujumbura route. (Aug2018)

Eritrean Airlines follows Ethiopian Airlines and launches 3 weekly Asmara-Addis flights while  Ethiopian has rapidly increased from once to twice to daily.  Govt-owned Eritrean has struggled over the past 15 years flying an ever-changing single aircraft fleet.  A single leased B737-300 currently operates to Cairo, Khartoum and Addis. The EU ‘Black List’ applies. Talks are underway on the possibility of Ethiopian taking a stake. (Aug2018)

Ethiopian Airlines reports 2017-18 as a ‘notable year’ with operating revenue up 46% and the fleet passing the 100 aircraft mark.  Continued ‘fast growth’ is forecast for 2018-19 boosted by the opening of ‘newly expanded and significantly upgraded’ Addis Ababa passenger terminals at the end of this year. (Aug2018)

Ethiopian Airlines eff Oct is to switch from Barcelona to Lisbon as the beyond point for 4pw Madrid services.  (Aug 2018)

Ethiopian Airlines is planning increased ops to China including additional Guangzhou frequencies.  Shenzen is a likely new destination.  (Sep 2018)

Kenya Airways is in talks to enter a 30yr concession contract with Kenya Airports Authority (KAA).  A new holding company, to be 100% owned by Kenya Airways, will own and manage Nairobi Airport.  The rationale is to ‘enable the airline and the airport to better compete with Gulf carriers and Ethiopian Airlines’.  (Aug 2018) 

Kenya Airways CEO talks of flight crew shortages resulting in part from the imminent return of the 5 777s sub-leased to Oman Air and Turkish Airlines plus annual growth of routes and fleet. Contracted foreign crew already licensed on the 777 are possibilities are being considered but likely to be opposed by the pilots ' union.

Kenya Airways stops ticket issues in Zimbabwe due to remittance problems arising from Zimbabwe foreign currency shortages.   (Sep2018)

National Airways (Ethiopia) launched 3 weekly, ERJ145s on  Addis Ababa – Mogadishu plus services to Puntland capital, Garoowe.  (Aug 2018)

Uganda Airlines Government has officially launched the new airline. The Minister of Works and Transport says that US$1.2m cash deposits have been made to purchase 4 CRJ900s (delivery 1Q 2019) and 2 A330-800neo (delivery 4Q 2020).  An Interim Board and management team have been appointed and Cabinet has approved a business plan.  Launch of operations meanwhile has slipped to Mar/April 2019.  (Aug2018)

SOUTH / CENTRAL AFRICA

Air Zimbabwe Government sacks the Board and appoints Grant Thornton, Chartered Accountants, as caretaker administrator. The existing management team under CEO Joseph Makonise remains in place. The estimated debt is USD320m. (Aug2018)

Fastjet Zimbabwe adds a 4^th Embraer ERJ145 to the fleet, leased from shareholder Solenta. (Sep2018)

Proflight (Zambia) wet leases a B737-500 primarily to meet Lusaka-Ndola demand levels.  Acquisition of a Dash 8-300 is also confirmed. Present fleet; 3x Jetstream J41 plus a CRJ100. (Aug 2018)

SAA plans launch of  a Jo’burg – Maldives route in December  (Aug 2018)

SA Airlink plans to open Jo’burg – Libreville .  (Jul2018)

SA Express Siza Mzimela, one time SAA CEO (2010-12) and founder of domestic carrier Blue Crane Aviation, is appointed as Acting CEO.  (Aug 2018)

SA Express as operations resume after the May cancellation of its AOC the carrier again seeks a capital injection from Govt, this time US$123m.  (Aug  2018)

TAAG (Angola) Has increased Luanda-Maputo frequencies mfrom 3 to 5 weekly, B737-700 (Aug 2018)

Zambia Airways re-launch is delayed to Jan 2019.  Ethiopian has signed the US$30m joint venture agreement. Ethiopian with 45% and the Zambian Govt 55%. Launch fleet will be 3 leased aircraft from Ethiopian Airlines rising to 12 aircraft by 2028. An initial regional network will be followed by international routes.   (Aug2018)

WEST AFRICA

Africa World Airlines (Ghana) might see Chinese ARJ21s enter the fleet with parent company, Hainan Airlines Group, leading the discussions.  he current fleet is

6 ERJ145s  (Sep 2018)

Air Peace (Nigeria) added daily Lagos-Kaduna ERJ145 flights to its Air Peace Hopper network. An eventual fleet of 6 ERJ145sis planned.  (Aug2018)

Air Peace (Nigeria) has ordered10 B737-Max 8s.  (Sep2018)

Air Senegal plans launch of Dakar-Paris services from Feb 2019 following delivery of the first of 2 A330-900s ordered in Jan this year.  (Sep 2018).

Dana Air Nigeria adds a B737-700 on wet-lease from Asky under an aircraft partnership agreement.  (Sep 2018)

Dana Air (Nigeria) The Nigerian CAA, eff 2 Sep, suspended the AOC ‘to carry out investigations’.  24hrs earlier an MD83 had left the runway on landing at Lagos. There were no survivors from the 153 souls on board.  (Sep 2018)

Nigeria Air  Govt stops development work on the proposed start-up. Aviation Minister, Hadi Sirika, has announced that “the Federal Executive Council has taken the tough decision to suspend the National Carrier project”.  No reasons have been given.  The launch announcement was made 2 months ago, in July with the date set for December this year.   (Sep2018)

PassionAir (Ghana) Start-up has taken delivery of the first of 3 Q400s. Accra-Kumasi flights are imminent as is the delivery of the second and third aircraft.  The domestic network will be expanded progressively to include Tamale and Takoradi.  (Aug 2018)

Senegal Airlines Government has appointed ex-Airbus executive Philip Bohn as Director General to head-up the launch the new company.  Start-up is scheduled for 9 Dec to coincide with the opening of Dakar’s new airport.  2x ATR72-600s will operate a domestic schedule. The later delivery of 2x new A330neo ordered in 2017 will enable regional ops plus Paris.   (Aug2018)

Tchadia Airlines (Chad) new national carrier to be launched in October with Ethiopian Airlines holding 49% and the Chad Govt 51%.  Initially 2x Q400, from Ethiopian, will link 4 domestic points plus nearby regional links. Toumai Air Chad operated domestic and regional flights from 2004 until its grounding in 2012.  (Aug 2018)

NORTH AFRICA

Air Algerie eff October is to launch Brussels ops plus, in December, both Algiers-Libreville and Doual, all with B737s. (Aug 2018)

Royal Air Maroc anticipates delivery of the first of 4 B787-9s in December plus the first of 4 B737-8s before year end.  Casablanca - New York, in December, is to be the first B787-9 route followed by Miami in April 2019. Montreal and Sao Paulo are also mentioned.  (Aug 2018)

Tunisair The signing of an EU ’Open Skies’ Agreement is anticipated before the end of this year.  The heavily protected, over-staffed, state-owned carrier complete with militant trade unions, is ill-prepared to compete with European LCC operators. As a result the reduction of 1200 staff is being discussed.  Expansion of intra-African routes is being pursued with Khartoum and Douala to come on-line before year-end.  6 additional aircraft are planned to be leased during 2019. (Aug2018)

NON-AFRICAN AIRLINES

KLM eff Dec is to drop recently added Freetown and Monrovia from the network in December.  (Sep2018)

Qatar Airways plans a December launch of 4 weekly, A320 ops, Doha-Mombasa. It should have immediate appeal to anyone who has had the hassle of transferring from international to domestic or vice versa flights.  (Sep 2018)

Turkish Airlines plans December launch of 2 weekly Lusaka frequencies via Dar es Salaam (without local traffic rights).  Also to come on line is Marrakech (Aug2018)

MISCELLANEOUS

Ghana the process of establishing a new national carrier is “far advanced” with Ethiopian, Air Mauritius and Abu Dhabi Aviation and local African World Airlines each bidding to be the strategic partner. Securing FAA Cat1 status enabling direct Ghana-USA flights is a priority.   (Aug2018)

IATA states that since January it has successfully released more than US$500m of airline funds trapped in Africa.  (Aug 2018)

Kenya congestion at Jomo Kenyatta and Wilson, the 2 Nairobi airports, has prompted the KCAA to consider a freeze on new carriers.  This is the price of several large developments at Jomo Kenyatta having been announced but not moved into a construction stage over the last twenty years. Wilson has never had a coherent plan, each operator being left to build its own terminal facilities. Immigration remains in the confined space where it has been since at least the 1950s. (Aug 2018)

Kenya Govt plans discussions with low-cost airlines such as Ryanair (Ireland) and EasyJet (UK) to begin flying to the country. How that chimes with its apparent lack of enthusiasm for Fastjet isn't clear.

Zambia has signed a sales agreement for a single VIP configured SSJ100.  Talks for a further 4 passenger configured SSJ100s continue.  (Sep2018)

JOHN WILLIAMS- SEPTEMBER 2018

African Roundup    June - July 2018

Air Tanzania’s fleet upgrading continues.  The last of 3 new Q400s arrived in March followed by the sole B787-8 early in July.   Within days the B787 was operating Dar-Kilimanjaro-Mwanza-Dar triangles to build crew hours and landings and to delight passengers. Its full capability will be exploited with Mumbai services planned for a September start.  The arrival of 2 new CS300s later this year – the first for Africa - will complete the upgrade. Profitability is now expected by 2023.

The next few months will see several longhaul network expansions by African carriers.  In addition to Air Tanzania’s Mumbai opening, Kenya Airways is to start their long-awaited venture to New York. Rwandair plans also to add New York, plus Guangzhou.  Slightly less visible will be Ethiopian’s introduction of a Moscow routing via Istanbul.  Meanwhile non-African carrier Etihad has announced its imminent withdrawal from Dar es Salaam. The welcome result: African carriers, plus 4; Others, minus 1.

The rebirth of several dormant carriers is close.  Also the re-creation of carriers in some of the continent’s smaller countries.  The 2002 collapse of Air Afrique created many ripples throughout the Francophone area, likewise the post-independence troubled childhood of new national carriers in Anglophone countries.  Ethiopian Airlines has stepped in to fill voids on maps. Its Vision 2025 ‘Multiple Hubs in Africa’ strategy already has several visible successes, eg, ASky in Togo, Malawi Airlines and Ethiopian Mozambique Airlines.  To these will shortly be added a new Zambia Airways for launch in October.  Plus, agreements have been signed with Guinee, Chad and Djibouti for help in forming new airlines.  Uganda Government has established a new Uganda Airlines and signed for CRJ900s and A330-800s for delivery in 2019 onwards.   Lastly the Nigerian saga following Arik Air’s problems has reached a conclusion with Government announcing the creation of a new national carrier, Nigeria Air, in which it will hold just 5%.

Problems in South Africa continue, this time with state-owned SA Express. As with SAA, its financial problems are profound resulting in a capital injection being sought in early May.  But within days the problems escalated. The SCAA, following an audit, identified ‘serious safety concerns’ and withdrew the carrier’s AOC and other approvals, effectively grounding it.  Revenue dried up.  SAA, Mango and Airlink cobbled together replacement schedules and Government met outstanding salaries.  By end July, a new AOC had been granted and several aircraft had passed inspections allowing limited ops to be resumed.  Others, presumably, will follow.  Any effect on passenger confidence will then be visible.   Government has initiated the merger of SAA and SA Express. Bringing them both within the remit of the Public Enterprise Department - for now SAA reports to the Treasury – is the first task.

Fastjet too continues to suffer financial difficulties.   The relocation from Gatwick to South Africa plus restructuring is reported as proceeding well but at a cost.  The June available cash balance was revealed as being just USD1.55m.  Shareholders responded with an additional USD10m, sufficient for operations to continue to year-end.  A revenue boost from the imminent launch of domestic South African operations was pledged in return.

And … IATA statistics show that for the 3 months to Mar 2018 African passenger traffic rose at a world leading 12.7% year on year.

EAST AFRICA

Air Tanzania Eff 29 July B787-8 ops were launched.   Training and familiarization will be completed on Mwanza and Kilimanjaro routes with Mumbai ops planned for Sep. Discussions with Boeing on the possible delivery of a second aircraft are underway.  Arrival of the 2x new CS300 is anticipated before year-end.  (Jul 2018)

Ethiopian Airlines eff Nov plans launch of Addis-Istanbul-Moscow ops (Jun2018)

Ethiopian Airlines sole shareholder, the Ethiopian Government, signals it is prepared to sell a minority shareholding in various sections of the Ethiopian Airlines Holding Group.  Share sales in the airline itself are unlikely. Its profitabilty makes it source of capital for growth, says the CEO.   (Jun2018)

Ethiopian Airlines eff 17 July and after a gap of 20 years restarts ops to Eritrea, daily to Asmara, increasing to double-daily eff 28 July,  B737-800.  (Jul2018)

Ethiopian Airlines drops the idea of a new 100-seat fleet.  Rapid regional market growth will instead lead to increases in the B737 fleet.  (Jul 2018)

Kenya Airways looks to expand African regional ops including the possibility of closer relationships with SAA and Ethiopian.  (May 2018)

Kenya Airways increases Cape Town capacity to 10pw with 3pw non-stop ops.  The daily ops route via either Livingstone or Victoria Falls. (Jun2018)

Kenya Airways may possibly be merged with Kenya Airports Authority.  Cabinet has approved the proposal by Kenya Airways Chairman.  Rwanda and Ethiopia are cited as successful examples of such linkages.   (Jun2018)

Kenya Airways having considered selling its 3x B777-300 on return from sub-lease to Turkish Airlines the idea has overturned the idea in favour of boosting ticket sales as the path back to profitability.  The first B777-300 will return in September. (Jun2018)

Kenya Airways plans to launch New York services eff 28 October.  (Jul 2018)

Kenya Airways is to drop Jeddah from the network eff September. (July2018)

Rwandair will add 2x A330neo plus 2x B737Max8 during 2019.  New York and Guangzhou ops are being planned for the first half of the year. The 2x CRJ900 will leave the fleet. (Jun2018)

Uganda Airlines Government has officially launched the new airline.  The Minister of Works and Transport says that USD1.2m cash deposits have been made to purchase 4x CRJ900 (delivery 1Q2019) and 2x A330-800neo (delivery 4Q2020).  An Interim Board and management team have been appointed and Cabinet has approved a business plan.  Launch of ops meanwhile has slipped to Mar/April 2019.  (Jul2018)

SOUTH / CENTRAL AFRICA

Air Botswana places firm orders for 2x ATR72-600 for delivery later this year.  Other fleet renewal steps, eg replacement of the 3x ATR42-500 in service for more than 20years, remain unclear.  Earlier this year the acquisition of an Emb170 was mentioned as was the pending launch of yet another attempt to privatize or find a strategic partner, also remain unclear.  (Jul2018)

Air Namibia again looks to West Africa for revenue growth and plans 29 June launch of Windhoek-Lagos-Accra, 4pw, A319 ops.  (Jun  2018)

Angola Express The State President vetoes the formation of the putative new carrier announced in February planned to serve a domestic network with a Bombardier turbo-prop fleet with mixed public and private financing. (Jun2018)

Fastjet sought shareholder support for additional funding revealing a current cash balance of USD3.3m of which USD1.75m is trapped in Zimbabwe. USD10m was provided enabling operations to continue to year-end. In return the company offered the prospect of domestic South African ops starting in ‘first quarter 2019’.  These will be covered by a licensing agreement with FedAir of Durban who operate domestic routes to 10 destinations. (Jun 2018)

Fastjet (Zimbabwe) eff 20 July launched daily Emb145 ops Harare-Bulawayo with additional frequencies being planned.  Other Zimbabwe routes link Harare-Jo’burg 4 per day, Harare Vic Falls 2 per day and Vic Falls-Jo’burg 3 per week. (Jul2018)

flyafrica.com Zimbabwe AOC withdrawn by the ZCAA. Ops ceased in Dec2015. (Jun2018)

LAM A lack of cash for the purchase of fuel caused flight cancellations including one on which the President of the nation was to travel.  He promptly sacked the Board. The company is in financial distress with reports not filed since 2010.  (Jul2018)

Malawi Airlines eff 15 July launched daily B737-700 ops Blantyre-Lilongwe-Dar es Salaam. (Jul2018)

SAA  Musa Zwane, acting CEO for two years until being placed on leave in November 2017 has been fired for financial dishonesty. So too, CFO, Phumeza Nhantsi. (Jun 2018)

SAA is ‘working closely’ with Ghana in evaluating potential traffic rights for Accra-London adding to the current Accra-Washington ops.  (Jun2018)

SA Airlink is to add a second weekly service to St Helena for the Dec to Apr 2019 period.  An extra service will be added to the once every 2 weeks extension to Ascension Island over Christmas/New Year.  The ETOPS E190 ops route Jo’burg-St Helena outbound with a Windhoek tech stop but non-stop inbound.  (Jul2019)

SA Airlink is evaluating possible Jo’burg – Libreville ops.  (Jul2018)

SA Express Govt provides funds for staff salaries as a new AOC is sought to enable ops to restart. The SACAA withdrew the AOC on 24 May citing ‘serious safety concerns’ thus grounding the carrier. (Jun 2018)

SA Express is to be merged with SAA, says Public Enterprise Minister Pravin Gordhan, with both to be under the authority of the Dept of Public Enterprises.  Currently SAA falls under the Treasury and Public Finance.  (Jul 2018)

SA Express  The SCAA reinstates the carrier’s AOC and AMO withdrawn in May.  Following inspections two of the nine non-compliant aircraft precipitating the grounding have received new CoAs. Aircraft inspections continue. (Jul 2018)

Zambia Airways is on schedule for re-launch on 24 October in a USD30m joint venture with Ethiopian Airlines, Ethiopian Airlines (45%) and the Zambian Govt (55%). Launch flee will be 3x leased aircraft from Ethiopian Airlines.  (Jul 2018)

WEST AFRICA

Africa World Airlines (Ghana) talks of adding an EMB190 to the fleet to meet Accra-Lagos demand.  The current frequency is 5 p/day with ERJ145s. (Jun2018)

Air Burkina (Burkina Faso) has taken delivery of the first of 2 wet-leased CRJ900s with the second to follow later this year.  Government is now the sole shareholder The Aga Khan foundation sold its 88% shareholding last year.(Jun2018)

Air Côte d’Ivoire eff 2 Aug plans launch of Abidjan-Bouake-Bamako ops providing the first cross-border flights from the central Ivorian region city.  (Jun 2018)

Air Peace (Nigeria) eff 6 Aug is to launch 4 p/w ops to both Abuja-Accra and Abuja-Freetown.  Current operational fleet is 13x B737-300/500.  (Jul2018)

Cabo-Verde Airlines Government targets end-2018 for successful privatisation.  The current management contract with Icelandair is not to be renewed.  (Jul 2018)

Camair-Co Has extended Abidjan ops to Dakar and plans imminent launch of ops to Lagos and Bamako (Jun2018)

Ceiba International (Equatorial Guinea) eff 26Jun extended Malabo-Abidjan ops to Dakar  (Jun 2018)

Max Air (Nigeria) eff 12 July commenced daily ops from Kano to Abuja and Lagos with a fleet of 3x B737-300.  A wider domestic network is planned.   Charter ops continue with its fleet of 4x B747.   (Jul2018)

Nigeria Air  The new national carrier, as announced by Government, to be owned and managed by the private sector.  Government will hold 5%. Target launch date is December this year with an initial 5 aircraft fleet of B737Max and A330s. The finance partner has yet to be secured as have the AOC and other regulatory approvals.   Start-up capital needs are estimated to be USD300, spread over 3 years.   The original Nigeria Airways collapsed in 2003.  Virgin Nigeria survived from 2004 to 2009.  (Jul 2018)

Overland Airways (Nigeria) Lagos-based domestic carrier plans imminent entry of regional ops to Lome, Niamey, Cotonou with 9 strong fleet of ATR42/72 and Beech 1900Ds. (Jul 2018)

NORTH AFRICA

Royal Air Maroc anticipates delivery of the first of 4x B787-9 in December plus the first of 4x B737-8 before year end.  Casablanca - New York, in December, is to be the first B787-9 route followed by Miami, Montreal and Sao Paulo.  (Jul 2018)

NON-AFRICAN AIRLINES

Etihad eff 30 Sep will drop Dar es Salaam from the network echoing the withdrawal from Entebbe 3 months ago.  (June 2018)

Oman Air eff Jul 2019 plans launch of 4pw Muscat-Casablanca B787-8 ops (Jun2018)

Turkish Airlines plans end-2018 launch of Marrakech ops. (Jun2108)

MISCELLANEOUS

Gabon Govt discusses with Saudi-based Nexus Aero the completion of a feasibility study for a new national airline. The original Air Gabon collapsed in 2005.  (Jul2018)

Libya  Work continues on the rebuilding of badly damaged Tripoli Airport, closed in 2015. Italian companies have been contracted for the USD93m project. (Jul2018)

Zimbabwe Govt is to merge Air Zimbabwe and putative Zimbabwe Airlines with its ex-Malaysian 4x B777s.  Details vague. (July 2018)

Zimbabwe Govt commissions a USD154m, 3 year, project to upgrade Harare’s Robert Mugabe International Airport.  A Chinese concessionary loan will finance.  (Jul 2018)

JOHN WILLIAMS  August 2018