Thursday 21 January 2016

Aviation Is Now Necessary No Longer Luxury

At the recent African Business Aviation Association (AfBAA) conference Mr. David Kajange, Head of Transport and Tourism of the African Union's Infrastructure and Energy Department noted that only two decades ago, air transport was not much of a priority to Africa's policy makers.

It was considered the domain of the rich, and governmental elites. With the development of the economic markets, product innovations by airlines and the expansion of international aviation networks, it has become more affordable and equally contributes to economic growth. However, aviation costs are still high, and the fractured nature of the sector means trans-continental connectivity is still restricted. Many destinations are still not accessible by direct flights, and in some cases, connections involve transit points in other regions like Europe or the Gulf States.

Yet it is no secret that the world is witnessing an economic and social development boom in Africa. Analysts suggest that seven out of the top ten growth economies worldwide over the next five years are African, and that by 2015, well over 100million Africans will populate a new middle class with, for the first time, a discretionary income.

This new middle class will have heightened travel requirements, as will the business executives who are supporting the economic growth. Both groups will have a need for strengthened aviation offerings.

Today as commercial aviation's growth is accepted as being driven by the needs of the international and continental trading community, the business aviation sector is still considered the domain of the elite, rich and lucky. However this is not the case, and as AfBAA clearly states business aviation is an economic and social driver that will significantly contribute to a nation's economic growth. Africa has a number of rapidly developing industry sectors attracting the interest of regional and international companies.

Mining, communications infrastructure, large-scale agriculture, manufacturing as well as renewable energy gas and oil sectors are all burgeoning industries. The AU is also aiming to make Africa a significant global manufacturing hub in the near future. As these areas develop so the need for business aviation grows to serve the needs of the international business community as a cost-effective means of transport.

Executives needing to travel between specified destinations that are not supported by hub-and-spoke commercial airlines need to use business aviation. A trip that requires a visit to three or four different African nations can be done in a two-day itinerary using a chartered executive aircraft, whilst the same trip flying commercially could take a week or more.

For high-level business executives this is just too costly in time - time is literally money when you consider the fees of some of the CEOs of larger multi-national corporations, all of whom are exploring opportunities in Africa. Business aviation puts them back in control of their agendas and enables them to operate in a private, discrete arena. Meetings can be held on board making flying time a part of the working day.

For the industries developing in remote areas, such as mining and agriculture, flying is the only alternative, and enables direct access in a speedy and efficient manner, compared to overland alternatives. Business aviation provides a genuine transport alternative; it is becoming a necessary and essential part of the transport infrastructure.

Africa's business aviation community does not operate in isolation and the international community understands that Africa is a dynamic continent with huge potential to develop new business in a professional manner. Europe has historical ties to the continent, and a number of European aviation companies are already investing heavily in expansion across the continent.

A new global trade route, driven by the need for land, minerals and other resources has developed, linking China, the Middle East, Africa and South America. The USA is also waking up to the value of increasing import and export activity on the continent. These nations are already using established business aviation industries to maximise their time and productivity, they will expect the same in Africa.

Demands for increased business aviation services are already prevalent and it is notable that the AfBAA membership includes as many international companies, as native African businesses. Business aviation stakeholders recognise that the sector is now a genuine business requirement, not a luxury for those from rarefied social strata.

For those in business there is no clearer message that business aviation is an integral driver of social and economic development. It is no longer a luxury, it is an essential means of transport for a business community eager to maximise the opportunities of working pan and trans-continentally with Africa. Africa is open for business and business aviation is an integral part of the continent's future economic development and transport infrastructure.

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