WITH Africa's yearly economic growth forecast expected to exceed the world average, and air travel now more affordable to the continent's population of one billion people, the continent has been asked to match its growth with the development of aviation infrastructure with.However, in recent years, this optimism has translated into firm orders for both jet and turboprop aircraft manufacturers and more opportunities for aircraft leasing companies.Deputy Head, FL Technics Training, Lithuania, Mr. Tobias Sakalauskas stated at a summit in Nairobi, Kenya that Africa must keep an open dialogue with governments on infrastructure, adding that Africa needs infrastructure investment that should be seriously funded.According to him, 'Since 2008, we have seen a worrying trend of infrastructure development fees being imposed with little prior notification and often with no consultation and in the absence of transparency. For example, Mali, Senegal and the Democratic Republic Congo are among 12 states to have introduced such fees since 2008.'He disclosed that the combined annual cost to airlines was over $100 million, more than the African industry made in 2010.The Chief Executive Officer of African Aviation, Nick Fadugba stated that financing the African aviation industry remains a challenge, hinting thatmany African airlines have not yet succeeded in managing business risks and controlling their costs.To survive and prosper, African airlines he further stated need to adopt a sound business plan and to seek strong partners.Fadugba explainedthat many of the challenges needed to be addressed, stressing thatair safety in Africa was still a major concern, adding that a practical solution needed to be found to the European Union blacklist issue the problem of travel visas for Africans within Africa, to him needs to be resolved.He listed other challenges to include market liberalisation, which to him remains a hot talking point with insufficient action, very weak balance sheet of many African airlines, difficulty in accessing capital, below expectations of airlines cooperation and lack of consolidation.His words, 'African governments and aviation regulators, on their part, need to create an enabling environment so as to attract the financial resources and investment that are urgently required to fund the development of the African aviation industry.'He, however, decried the high turnover of airlines chief executive officers and management instability as source of concern at some African airlines, disclosing that one government-owned carrier in Africa, for example, recently appointed its eighth chief executive in 13 years.'While airline business models have certainly evolved in Africa, the reality is that a paradigm shift in attitude is needed in order to capitalise on growth opportunities, which are achievable through increased co-operation and consolidation.'As for African airports, he noted that many have benefitted from the new business provided by the growing number of foreign airlines now flying into the continent, but added that African airports, too, like African airlines, need to improve their strategic, operational and financial performance.
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