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