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Africa's Aviation Crisis

November 1, 2005

Sector battling high energy costs and poverty


Africa's aviation industry has been hard hit by rising fuel costs, just like airlines in other parts of the world. However, one of the biggest challenges unique to the continent's air carriers is the very low purchasing power of Africans.

While that challenge cannot easily be remedied, a recent gathering of aviation experts resulted in suggestions for combating some of the problems. First, the African aviation industry should cut its dependency on government aid and open itself to private sector investment, they recommended. Secondly, air carriers should enter into partnerships and alliances as a strategy for gaining strength against mega carriers. In addition, aviation experts advised that African governments improve the foreign investment environment in the aviation sector.

Improving the foreign investment climate (an important element), has its own challenges, acknowledged aviation experts. In particular, Africa is still regarded as a high-risk area by the international community because of corruption and policy instability. Therefore, for the sector to achieve sustainable growth, aviation experts say it's imperative for African governments to make the continent's aviation industry the haven of investments.




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