Aviation Capacity Building and

Cooperation in Africa

Raphael Kuuchi Vice President , Africa

© ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 2

OUR INDUSTRY TODAY

OUR INDUSTRY TODAY

World

1,379

Airlines

25,332

Aircraft in

service

3,864

Airports

Africa

245

Airlines

1,273

Aircraft in

service

371

Airports

Africa in a year…

• 119 million passengers

• 3% of the world passengers

• 6.9 million jobs

• $80 billion in GDP

• 1,584,000 flights

Record 2015 profits for the industry as a whole

IATA Economics www.iata.org/economics 6

Source: ICAO, IATA

-8

-6

-4

-2

0

2

4

6

8

-30

-20

-10

0

10

20

30

2000 2002 2004 2006 2008 2010 2012 2014

Global commercial airline profitability

Net post-tax profit

EBIT margin

% revenues US$ billion

IATA Economics www.iata.org/economics 7

Net Profits of $29.3 billion

on Revenues of $727 billion

IATA Economics www.iata.org/economics

8 Source: IATA, McKinsey, IHS Global Insight

Record 2015 profits still only $8.27 per passenger

Profits in Africa too, but challenges are ongoing

IATA Economics www.iata.org/economics 9

Source: IATA

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

-0.20

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

2007 2008 2009 2010 2011 2012 2013 2014 2015f

Net profit (LHS) EBIT margin (RHS)

US$bn Net Profit & EBIT margin - Africa

% revenues

Africa’s 2015 profits are just $1.59 per passenger

IATA Economics www.iata.org/economics 10

Revenue Cost Net profit

$189.54 $187.95

$1.59

Africa (per passenger)

Source: IATA

AFRICA HAS THE

GREATEST POTENTIAL

Today ….

With over 1.2 billion people, air connectivity limited GDP is growing Middle class is increasing FDI into Africa is big and Intra-Africa trade is expanding

Confirmed by InterVista Study

$1.3 billion of incremental

GDP

155,000 additional jobs

Fare drop of 25-35%

Time savings - Efficiency

Additional 5m passengers

IATA Economics www.iata.org/economics 13

Only 2 countries have direct connections to more than half of the other countries in Africa

Source: SRS Analyser, IATA Economics

Additional 1,170 aircraft for Africa, 2015-2034

IATA Economics www.iata.org/economics 15

Source: Boeing

38,000 new aircraft, valued at $5.6 trillion

Critical Skills

Pilots – 25,000 per year or 498,000 over next 20 years

28,000 maintenance technicians annually or 556,000 over 20 year period

Africa

1,500 pilots

600 maintenance technicians

4,000 airport operators

annually

• Training – IOSA/ISAGO/Diploma courses

• Joint advocacy with AFCAC, AFRAA, etc

• Infrastructure development

• Charges, taxes and fees negotiations

• Sustainable aviation growth – the environment

• Smarter regulations

• Connectivity – VoA study

• Technology adoption

IATA in Capacity Building

Infrastructure development - both physical and financing will impact aviation growth

Going Forward …

• Uniformity in standards through harmonised

aviation regulations

• Share training resources and capacity – avoid

duplication

• Fund for aviation skills development

• Mechanism of compensation for brain-drain

Thank you