Africa’s ailing national airlines survive on USD2.5 billion of government subsidy. Not sound policy

Africa's unenviable record of government interference in the continent's aviation system is demonstrated by no less than nine carriers currently surviving at the behest of their respective governments through a variety of financial support mechanisms collectively worth about USD2.5 billion.

In most cases this support serves only to distort any prospect of a level playing field, preventing privately owned carriers from competing effectively. Nigeria is even taking this a stage further as state support of private carriers is being undermined by a desire to relaunch a government owned national flag carrier. In other cases, such as Uganda, new state-owned airlines are planned to compete with successful privately owned operators in markets that often lack sufficient demand to support them both. Whatever the motives, and many of them are questionable at best, the outcome is sadly predictable.

In most cases Africa's national carriers suffer at the hands of government mismanagement and interference, key among them is the continent's largest airline, South African Airways (SAA) which is the subject of the biggest turnaround plan currently under way. This could offer a vital precedent if it succeeds - and if it doesn't.