Kenya on Monday urged African airlines to merge or increase cooperation to cope with losses due to high fuel price and increased competition if they are to survive in the competitive industry.
Kenya's Transport Minister Chirau Ali Mwakwere said the African airlines must consolidate and increase efficiency to cope with myriad challenges facing the industry.
"African governments must be prepared to operate joint ventures aimed at forging mergers or increasing cooperation between airlines to survive the ever-increasing competition," Mwakwere told a regional aviation meeting in Nairobi.
The minister said plans to merge or cooperate are underway among the three East African countries of Kenya, Uganda and Tanzania.
"Africa's civil aviation industry is faced with many challenges and therefore is unable to cooperate with the expected efficiency associated with the industry," he said.
State-run South African Airways is the continent's biggest carrier while other airlines serving the region include Air Mauritius, Ethiopian Airlines and Kenya's flag carrier, Kenya Airways.
European carriers Air France and British Airways also have a big presence, usually linking the continent with Europe.
The International Association of Transport Association (IATA) had forecast airline losses in 2005 of 7.4 billion U.S. dollars as soaring fuel costs outstrip measures by airlines to cut costs.
"In order for civil aviation to survive the dynamics that characterize the industry and which to a large extent are dictated by technological advancement far beyond the regulatory frameworks of governments, adoption of cost cutting measures and innovative ideals is inevitable," the minister said.
"This has also necessitated the introduction of structural adjustment, which at times is a threat to the job security for those working in the industry. It is incumbent upon managers in the industry to ensure that workers are made aware of such challenges in order to avoid industrial unrests."
Mwakwere said the maintenance of safety and security standards in the civil aviation was prerequisite to the growth of the industry.
"This requires strict adherence to the International Civil Aviation Organization (ICAO) safety and security requirements by airline operators as well as through monitoring of the same by the relevant governments bodies," the minister said.
He warned that safety and security should not be compromised for commercial considerations.
Aviation authorities say safety concerns have led some countries to ban suspect airlines from landing at their airports, with some African airlines included on the list.
The world aviation body, IATA said recently it was working with its members in Africa to increase efficiency in their system and was negotiating with airports to lower their user charges.
A key measure is helping airlines in Africa to switch from paper tickets to electronic ticketing ahead of the association's targeted deadline of 2007.
So far Africa has achieved 40 percent usage of electronic ticketing.
But the figure is misleading because only airlines in South Africa, Kenya and Zimbabwe have made progress.
A three-day International Transport Federation/International Labor Organizations East Africa Civil Aviation conference brought union officials representing workers in the aviation industry from East, Central and Southern Africa.
Source: Xinhua
June, 6, 2006
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