Share on social media. Pierce further pointed out that whilst global cargo performance is in the midst of a strong economic upturn, driven mainly by e-commerce, current demand for air cargo is actually growing faster than available capacity. Despite this, many analysts feel the continent continues to face enormous challenges in its air-cargo development strategy due to the lack of liberalisation, restrictions on traffic rights, limited intra-Africa connectivity, lack of co-operation between African airlines, high costs and taxes in fuel and airport services, inadequate infrastructure and lack of capacity building and training.
He added that while institutions - like IATA - are trying to push the cargo industry to change faster, they need to be cognisant of e-commerce and its overall impact on the cargo business. In general, the global cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields.
Volumes are expected to grow by 4. The boost to cargo volumes in was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand.
This led cargo volumes to grow at twice the pace of the expansion in world trade 4. Cargo yields are expected to improve by 4 percent in down from 5 percent in While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in In , airlines transported 52 million metric tonnes of goods, representing more than 35 percent of global trade by value, but less than 1 percent of world trade by volume.see
Freedoms of the air
On average, cargo business generates 9 percent of airline revenues, representing more than twice the revenues from the first-class segment. Be the first to post a comment You might also like Popular this Week. Game over for Malaysian Airlines? Then we have Arab airlines, which provide luxurious facilities and all kinds of perks.
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By comparison, some state-owned national airlines are starting to look damagingly outdated. In South Africa, for example, government-owned flag carrier South African Airways SAA has been operating at a loss for six years straight while the government keeps it afloat and the airline goes through round after round of restructuring attempts in search of profit.
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Of course, when decades of national pride is tied to an airline brand, seeing it disappear can be a humiliating prospect. In , a former personnel manager with the company described to the BBC the effect on national morale. All those Swiss values — punctuality, efficiency, high quality — were supposed to be embodied in that airline.
The lure of a prestigious and profitable national airline can present a financial sinkhole in the making. Tanzania and Uganda have revived flag carriers in the last year, and in July Nigeria unveiled a third attempt to revive its national carrier at Farnborough Airshow. While many countries in Africa move away from protectionism and towards liberalised air transport markets in which a wider range of operators can thrive, others remain attached to national airlines.
Clearly, different approaches will work for different countries, but to some critics, the obsession with flag carriers is a red herring distracting from more productive improvements.
Opening up airspace could make sky the limit for African trade and tourism
Adapt to survive In some cases, the failure of a national carrier, while painful, can work out well. At the time of writing, a last-ditch takeover proposal is being considered by Italian state rail company Ferrovie dello Stato and US-based Delta Air Lines, but with foreign players including Qatar Airways already positioning to expand in Italy, is preserving Alitalia worth the risk?
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Open skies could earn EAC $ million annually: study | The New Times | Rwanda
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Credit: Aero Icarus Ethiopian Airlines has flourished under public control. Credit: Alan Wilson.