Loading

Government ownership is the default position for Africa

Airline Leader

Like the Middle East, government ownership is the default position for Africa; that it is coupled with excessive government intervention is no surprise, nor is the poor financial performance of the continent's airlines. Few are listed, in this environment.

Summary
  • Government ownership and intervention are common in African airlines, leading to poor financial performance.
  • Ethiopian Airlines had a strong performance in 2015, while Tunis Air and Comair remained in positive territory.
  • South African Airways is facing further challenges and has not undergone necessary restructuring.
  • Tunisair has a recovery plan called 'Vision 2020' that includes various measures to improve the company's performance.
  • The plan includes reorganization, management of subsidiaries, improving staff and fleet productivity, and increasing ancillary revenue.
  • Tunisair aims to adopt a new mode of governance, improve service quality, modernize management tools, and contain costs.

Ethiopian continued its longstanding strong performance in 2015 and Tunis Air and Comair remained in positive territory.

Of the region's struggling airlines, South African Airways descended further into disarray, failing to make the necessary restructuring and, with a constantly meddling government itself in similar condition, the outlook is not favourable. 

Tunisair, via its official Facebook account, stated on 21-Apr-2016 that its 'Vision 2020' recovery plan is in the final stage of approval. The plan includes reorganisation of the company, management of subsidiaries, studying the integration of subsidiaries and Tunisair Express, adoption of a new mode of governance, business strategy, improving staff and fleet productivity, improving service quality, modernisation of management tools, cost containment and increasing ancillary revenue.