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 5th
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 5th 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 1st 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)
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