NAIROBI, Kenya- Kenya Airways believes that merging Africa’s national airlines could solve sky-high intra-African travel costs.
Speaking at the Aviation 101 Media Lab event in Nairobi, CEO Allan Kilavuka explained that fragmented markets and smaller fleets are pushing airfares far beyond those seen in other regions like Europe and Asia.
“It costs more than double to travel within Africa for similar distances compared to other parts of the world,” Kilavuka shared.
His argument is simple: Africa’s numerous small national airlines are driving up ticket prices due to inefficiencies, and consolidation could streamline the industry while benefiting travelers.
Kilavuka’s call for action stems from the reality that most African national airlines are operating at a loss, in part because they lack scale.
For a commercial airline to be profitable, Kilavuka pointed out, it needs a fleet of at least 50 aircraft. However, many African airlines struggle to reach this number, leading to higher operational costs that get passed on to consumers.
Instead of competing in fragmented markets, he proposed that African countries merge their national carriers.
This would allow them to pool resources, reduce operational redundancies, and potentially create regional aviation hubs, which would make air travel more affordable.
In theory, the savings could then be passed on to passengers, creating a more accessible air travel network across the continent.
Merging airlines isn’t just a theoretical idea. Airline alliances have worked in other parts of the world, as seen in regions like Europe, where pooling resources has helped national carriers stay afloat and reduce costs.
Kilavuka believes Africa could follow a similar path to improve both profitability and service quality.
Kilavuka also touched on the Single African Air Transport Market (SAATM), which was launched in 2018 with the goal of liberalizing the continent’s aviation industry.
However, the slow implementation of the agreement has been another roadblock for African airlines, leading to low seat occupancy and operational inefficiencies.
According to Kilavuka, full implementation of SAATM could unlock significant benefits for the industry, but until that happens, consolidation may be the best option to drive down costs and improve airline profitability.
Africa’s aviation industry faces several challenges, but the potential for growth is enormous. With over 1.2 billion people across 54 countries, the demand for affordable air travel is there—what’s missing is a unified strategy to make it happen.
The CEO’s vision for airline consolidation across Africa paints a clear picture: fewer, larger airlines could mean cheaper flights and more efficient service.
By pooling resources, avoiding duplicative costs, and creating regional hubs, the continent could finally tackle the long-standing issue of unaffordable air travel.
