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