Air safety: 2008 deadline for Africa.

The African Airlines Association (AFRAA) met for its 39th general assembly in Mauritius. Members discussed many hot issues concerning the future of air transport on the continent. Nasseem Ackbarally interviewed the organisation's secretary-general, Christian Folli-Kossi, for African Business.

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African Business: Can you sum up the thrust of discussions during the AFRAA 39th general assembly?

Christian Folli-Kossi: 'Doing business together' was the main theme. World experts in various fields talked about globalisation, the liberalisation of air services, air security, training and other topics.

We had a highly productive meeting where we launched a few common projects. In particular, we discussed co-operative purchasing as many of our members are small companies.

We agreed that even if we are too small to benefit from the economies of scale, we would pool our resources and together purchase the equipment and the services we need.

We also discussed the possibility of setting up an air leasing company. It is a promising idea and we are further studying it.

AB: Bankers and other finance experts also attended the assembly. What did they discuss with you?

CF-K: They advised us on all options on purchasing aircraft. And on leasing--which provides more flexibility. When our markets develop and grow we can ask our service providers to change our aircraft fleets to those that better suit our needs.

Other experts talked about new technologies, suggesting partnerships in terms of affordable IT solutions and management tools. We also discussed technical training and the price of oil which today represents 30% of our operating costs as compared to 12% to 15% a few years back. Other suggestions were on regrouping at regional levels, setting up strategic alliances and sharing information and experiences.

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We agreed that Africans should now look beyond their national borders and invest in companies that work. Where such companies do not exist, the private sectors of several countries could join hands and set up new companies. But the regulations of our countries should allow for such possibilities.

AB: Air security is of concern to everybody as Africa is the continent with the highest number of accidents. Did you discuss this issue?

CF-K: We have reiterated our commitment to apply the International Operations Safety Audit (IOSA). The world should know and understand it well that there are two Africas: one with regular airlines and good air security; and another Africa that of full of old Antonovs and Illyouchines. These aircraft do not form part of any company; they operate in conflict ridden countries such as the Democratic Republic of Congo, Sudan, Liberia and Sierra Leone.

We recommended the application of the IOSA Audit to our members. It was also agreed that the problem of air security be solved with the help of foreign as well as African experts.

AB: Do you have a deadline for the application of the IOSA Audit and do you envisage any sanction against airlines that are not certified by that date?

CF-K: May I remind you that air transport is still the safest mode of transport in the world--but it is excellence that we are looking for. We have said that by the end of 2007, all airlines should have signed an agreement with accredited safety agencies or organisations. Inevitably, it is the big companies that adhere to the regulations because they fly to European countries and the EU imposes rules on them.

At the end of 2008, any airline that does not possess a safety audit certificate will be excluded from the IATA and AFRAA. This applies to regular airlines, members of our organisation that do not pose any security risk. But this deadline will not solve the problem of old Antonovs and Illyouchines.

AB: The brain drain is another big problem affecting African airlines. How do think you can retain qualified people on the continent?

CF-K: Our position on this is clear--the problem of brain drain must be resolved. We call upon the African Union to handle it through the diplomatic channels and upon IATA to develop a code of conduct for all airlines.

We should do as in football. If any club wants a particular player, it pays compensation to the club losing the player so that the latter can use the money to train other players. Why should we not do something like this? Many big European clubs have set up football training schools in Africa in order to get top players. Why not the same for air transport?

It is generally admitted that today, Africans can be bought and put to work just like at the time of slavery. They'll bleed the continent and destroy the air industry. We should regulate this brain drain.

AB: Operation costs are rising constantly because of the high cost of fuel. Can regrouping airlines on a regional basis be a solution? Is it easy to discuss this issue with your members?

CF-K: It is very difficult when you have a continent of a size that can include Europe, America, Australia and India put together. Things are becoming so difficult that, whether we like it or not, we'll have to reach for some cooperation among ourselves.

Yes, at $100 per barrel, the cost of fuel has reached about 30% of our operating costs. We are in a business that is controlled by the law of supply and demand and where the economies of scale can be applied. The more you buy, the more your power to negotiate. It makes sense for our members to co-operate.

AB: You have appealed to the All to play the role of a facilitator on the continent. What are the relations between AFRAA and the AU?

CF-K: We are a privileged partner of the AU. We say that air transport can become an economic pillar to strengthen the AU just as steel did for the European Union a long time back.

Air transport allows people to travel around the continent, to consolidate trade, to bring people together and it is also a tool for trade with the rest of the world.

There is also the question of energy. We have so many long rivers with great hydro power potential--let us invest in them. There is also telecommunications. Let us use these three pillars to build a roof on the head of the AU.

But the AU is somewhat frustrating us as it is unable to do these things. We have also asked the AU to liberalise air access if they want air transport to develop. But they are unable to talk to member states. We are being handicapped because of these things.

AB: Why can't AFRAA talk to the member-states directly?

CF-K: Truly, nobody knows how to make his or her voice heard by African governments--except the former colonial masters. But as an intellectual and a man of action, I'll not renounce it. I have learnt to be patient. AFRAA considers that it has shaken the coconut tree through its communications and that will be beneficial to air transport in the future.

RELATED ARTICLE: Reality check for African airlines

Representatives of African airlines and their commercial partners met in Mauritius for their 39th general assembly. A central theme of discussion was the ways and means of improving co-operation and working together for the benefit of all.

Also under discussion was globalisation and whether African airlines were really prepared for its increasing influence on the industry.

"We are in a hurry, we want to succeed, so let us hurry up, slowly," declared AFRAA's secretary-general Christian Folli-Kossi who was intent on impressing upon AFRAA members that time was running out. (See interview).

Airline representatives are aware that globalisation is unavoidable, but each is travelling at their own speed depending on their circumstances and interests.

Members declared that the impact of globalisation should be measured by state authorities and that there should be regular updates regarding this phenomena.

AFRAA members also discussed the rising costs of fuel, air-side handling services, electronic ticketing and personnel training. In common with most world airlines, their profits are being hit by the rising cost of fuel, ranging from 25% to 30% of their costs.

AFRAA has announced several measures to meet these challenges including the joint purchase of fuel, co-operating on handling services and the introduction of electronic ticketing.

Joint fuel purchase agreements are already underway with Afriqiya Airways and Egypt Air whose representatives briefed the meeting on this project which is about to be launched.

Regarding joint handling services, the executive committee of AFRAA has selected certain airlines to undertake this new development. Other airlines will be invited to join this initiative in due course.

In 2008, AFRAA intends to implement the Yamoussoukro Declaration in its entirety meaning that all African carriers will be free to operate without restrictions on all routes of their choice within Africa. A meeting with countries ready for this initiative will be called later this year.

AFRAA also wants Africa's aviation industry to adopt, under the aegis of the African Union, a Common Air Transport External Policy so as to be able to negotiate with third parties such as the EU and other blocs with a single air space policy. This should, according to Folli-Kossi, pave the way for African airline consolidation and an increase in competitiveness.

AFRAA also determined that its members would vigorously tackle the problems linked to air security and safety so as to put an end to the recurrent bad image of Africa in this field.

In a final item on the business agenda, Mohamed Ghelala from Air Burkina was elected chairman of AFRAA to replace Sanjay Buckhory of Air Mauritius.