New African air carriers will struggle for takeoff

Subject

African carriers.

Significance

The African air transport market presents significant untapped potential demand. Recent growth in GDP and in air traffic across several Sub-Saharan African states has led to a wave of government-sponsored backing for new or rejuvenated national carriers. This comes despite successive new flag carriers failing to secure market foothold.

Impacts

• Emerging carriers will struggle to ensure enough government support over the medium to long term.
• Poor risk-based strategic management will mean many new carriers are unable to attract enough private-sector investment.
• A more open regulatory environment could provide newer carriers with profitable new route opportunities, including to the United States.