Airlines vital for battling economies: Airbus

DESPITE African airlines proving to be a major financial drain on their countries’ limited resources, it would stifle their nascent economies if they did not have one, says Europe’s major aircraft manufacturer, Airbus.

“If you take away the airline, you’ll kill the economy,” says Airbus Vice President for Sales in Africa, Hadi Akoum. African airlines, he said, already faced a tough time competing with airlines based in the northern hemisphere to bring tourists to the continent.On a vigorous marketing drive, especially in Africa where old aircraft contribute to exorbitant operational costs, Airbus maintains African airlines that opt for diversifying their fleets with Airbus aircraft stand to save up to 30 per cent in operational and fuel costs.”Air Namibia has made the right move,” Akoum maintains.In the face of criticism of Air Namibia’s decision to lease two A340-300 Airbuses to operate its two long-haul overseas routes, Akoum told The Namibian that the decision would definitely save the airline money.”It’s a very good choice, it now just depends on how they use it [to their advantage],” Akoum said.Akoum says Airbus is very aware that African airlines depend heavily on their governments to keep their planes in the sky, but that national airlines still played a vital role in terms of growing African economies.Good management of the airlines could overcome the political pressures of running them, he reckons.With oil prices having topped the US$60 a barrel mark, Akoum says this situation particularly affects African airlines, which pay more for fuel than their overseas counterparts.Much of African airlines’ financial woes, he says, are linked to operating old fleets which cost them dearly in maintenance and fuel costs.According to him, Airbus boasts better operational efficiency on its newer long- and short-range aircraft than its major rival, Boeing.Akoum says African airlines spend as much as 60 per cent of their costs maintaining their fleet.Even if Air Namibia was not to achieve massive savings by leasing the Airbuses compared to what it has been spending on hire-purchase costs for the Boeing 747-400 it sold last year, it would still save on overall costs by operating Airbuses, maintains Akoum.Air Namibia carried its first passengers from London to Namibia on Monday, since relaunching the London route this past weekend.The direct flight is currently being operated by an MD 11, which will later be replaced by the Airbus aircraft, the first of which is scheduled to join the Air Namibia fleet before the end of the year.The other will come into use next year.Air Namibia hopes to carry 30 000 passengers between Namibia and Britain in the next year on its three weekly flights.Last month, the DTA’s Johan de Waal warned that Air Namibia was doomed to failure if it pursued expanding its services, and disagreed with Government’s ongoing financial support for the airline.The Airbus aircraft will be leased at a cost of US$530 000 a month each.The Boeing 747-400 cost the airline as much as US$900 000 a month in financing costs.The Airbuses are expected to save the airline 40 per cent on operational costs – US$1 700 an hour to fly compared to the US$2 656 of the Boeing.The Boeing 747-400, which was sold last August, used as much as 100 tonnes of fuel on a flight to Europe – 40 tonnes more than the Airbus 340-300 is expected to use.Air Namibia Operations Manager André Compion told The Namibian that the airline was expected to make further savings over up to 30 per cent in landing fees and other flight-related taxes by flying the Airbuses, which are much lighter than the Boeing.Air Namibia will receive N$116 million from State coffers this year, and Government support is set to continue for at least another two years.Last week, Finance Minister Saara Kuugongelwa-Amadhila said Government support for the airline was vital if the country wanted to boost tourism, investment and trade, while also reducing the country’s dependence on other airlines for linkages to the West.By the end of 2006, Government would have spent N$1,5 billion since 2000 to keep Air Namibia in the sky.Airbus currently has a 56 per cent market share in Africa – largely due to Air Mauritius’s all-Airbus fleet, and South African Airways’ purchase of 41 new Airbus aircraft in 2002.African airlines, he said, already faced a tough time competing with airlines based in the northern hemisphere to bring tourists to the continent.On a vigorous marketing drive, especially in Africa where old aircraft contribute to exorbitant operational costs, Airbus maintains African airlines that opt for diversifying their fleets with Airbus aircraft stand to save up to 30 per cent in operational and fuel costs.”Air Namibia has made the right move,” Akoum maintains.In the face of criticism of Air Namibia’s decision to lease two A340-300 Airbuses to operate its two long-haul overseas routes, Akoum told The Namibian that the decision would definitely save the airline money.”It’s a very good choice, it now just depends on how they use it [to their advantage],” Akoum said.Akoum says Airbus is very aware that African airlines depend heavily on their governments to keep their planes in the sky, but that national airlines still played a vital role in terms of growing African economies.Good management of the airlines could overcome the political pressures of running them, he reckons.With oil prices having topped the US$60 a barrel mark, Akoum says this situation particularly affects African airlines, which pay more for fuel than their overseas counterparts.Much of African airlines’ financial woes, he says, are linked to operating old fleets which cost them dearly in maintenance and fuel costs.According to him, Airbus boasts better operational efficiency on its newer long- and short-range aircraft than its major rival, Boeing.Akoum says African airlines spend as much as 60 per cent of their costs maintaining their fleet.Even if Air Namibia was not to achieve massive savings by leasing the Airbuses compared to what it has been spending on hire-purchase costs for the Boeing 747-400 it sold last year, it would still save on overall costs by operating Airbuses, maintains Akoum.Air Namibia carried its first passengers from London to Namibia on Monday, since relaunching the London route this past weekend.The direct flight is currently being operated by an MD 11, which will later be replaced by the Airbus aircraft, the first of which is scheduled to join the Air Namibia fleet before the end of the year.The other will come into use next year.Air Namibia hopes to carry 30 000 passengers between Namibia and Britain in the next year on its three weekly flights.Last month, the DTA’s Johan de Waal warned that Air Namibia was doomed to failure if it pursued expanding its services, and disagreed with Government’s ongoing financial support for the airline.The Airbus aircraft will be leased at a cost of US$530 000 a month each.The Boeing 747-400 cost the airline as much as US$900 000 a month in financing costs.The Airbuses are expected to save the airline 40 per cent on operational costs – US$1 700 an hour to fly compared to the US$2 656 of the Boeing.The Boeing 747-400, which was sold last August, used as much as 100 tonnes of fuel on a flight to Europe – 40 tonnes more than the Airbus 340-300 is expected to use.Air Namibia Operations Manager André Compion told The Namibian that the airline was expected to make further savings over up to 30 per cent in landing fees and other flight-related taxes by flying the Airbuses, which are much lighter than the Boeing.Air Namibia will receive N$116 million from State coffers this year, and Government support is set to continue for at least another two years.Last week, Finance Minister Saara Kuugongelwa-Amadhila said Government support for the airline was vital if the country wanted to boost tourism, investment and trade, while also reducing the country’s dependence on other airlines for linkages to the West.By the end of 2006, Government would have spent N$1,5 billion since 2000 to keep Air Namibia in the sky.Airbus currently has a 56
per cent market share in Africa – largely due to Air Mauritius’s all-Airbus fleet, and South African Airways’ purchase of 41 new Airbus aircraft in 2002.