Airlines In Southern Africa Face Challenge Of Foreign Currency Shortage, Inadequate Infrastructure

Airlines In Southern Africa Face Challenge Of Foreign Currency Shortage, Inadequate Infrastructure

Mr. Aeron Munetsi is the Chief Executive Officer of Airlines Association Of Southern Africa (AASA). He relates the activities and challenges of AASA members to AVIATION MONITOR in this exclusive interview

Q: WHAT DO YOU SEE AS KEY CHALLENGES BEFORE AASA MEMBERS AT THE MOMENT?

A: One of the current situations that we find ourselves is that our airlines obviously feel the impact of the challenges that are coming from the Middle East crisis. Another big challenge is that even within our region in Southern Africa, we have countries that are still experiencing shortage of foreign currency. So, our airlines are not able to repatriate the proceeds of their sales activities and they end up with blocked funds in countries like Mozambique, Zimbabwe, Angola, Malawi. These challenges are impacting and inhibiting the progress of our airlines. That is one of the biggest challenges. Another one is the lack of adequate infrastructure to the extent that sometimes, our airlines are not able to operate the number of frequencies and schedules they want to operate simply because infrastructure is not all that standard.

Q: THERE IS THIS OTHER CHALLENGE OF CURRENT STATE OF ECONOMIES ACROSS THE WORLD, ALONGSIDE GLOBAL OIL CRISIS. WHAT ADVICE DO YOU HAVE FOR YOUR MEMBER AIRLINES?

A: I think it is important to understand that geo-politics is the way the world lives. It has always been there and there will always be geo-political considerations. Airlines are very much aware of this and they are resilient in terms of their business plans, operational plans and strategic plans. So, the outcome of this geo-politics is what we are experiencing in the Middle East- the Strait of Hormuz, impact on the delivery of crude and jet A1. Our airlines are like any other airline in the world. Our role is to make sure that we assist them to secure supply of fuel so that they can fulfill their schedules because an airline is predominantly all about schedule fulfillment and they can only fulfill their schedule when there is schedule integrity because all the operational requirements are in place. What we continue to remind our airlines is that first and foremost, they need to keep an eye on their schedules, their operational requirements in order for them to realize and determine what next they need to do, wherever they are operating to; and if there is advanced notification of either a shortage or a limited supply of jet A1, then, the airlines must be able to quickly adjust their schedule by either reducing their frequencies or combining flights, or in the worse case scenarios, cancel flights. We never recommend cancelling of flights but it is entirely up to the airline because we don’t get involved in their day to day operations. It is entirely their responsibility

Q: HOW WOULD YOU ADVICE YOUR MEMBER AIRLINES AFFECTED BY AIRCRAFT SUPPLIERS’ CHANGE IN DELIVERY DATES TO HANDLE THE CHALLENGE?

A. The reality is, yes, OEMs have had challenges with delivery of aircraft. Immediately after covid, there was already a backlog in the entire supply chain system; and now, with the Middle East crisis, I think it will be an excuse to say the Middle East crisis has affected the delivery of aircraft but it has always been there. The requirements for update in technology as well as requirements in the manufacture of aircraft that suit our requirements as far as sustainability of the environment is concerned, has also had an impact. So, we find that airlines that had already placed orders are experiencing challenges. If airlines are going to place orders now, they definitely are going to experience even longer delays. What we would like to see as airline association is that airlines continue to use the aircraft they have right now, make sure there is no shortage of aircraft by making sure maintenance of this aircraft is up to standards and as being required by the OEM specifications; that their MROs are up to standards. So, we actually say we need a more focus on MRO facilities on the African continent so that our airline operators can be able to maintain the current fleet of aircraft that they have in anticipation that when the new aircraft comes, it will relieve them from the pressure of what they are experiencing right now.

Q: THE IMPORTANCE OF COOPERATION IS VERY EVIDENT. WOULD YOU SAY THAT AIRLINES IN SOUTHERN AFRICA ARE COOPERATING ENOUGH RIGHT NOW?

A: I think we are actually much more aligned in terms of cooperation and collaboration. The difference is that when you are cooperating, you are using the same facilities. For example, we have the same fuel storage facilities. We actually have the same fuel suppliers and when there is a shortage of spare parts or fuel, the airlines cooperate and make sure that no schedules are impacted. So, the airlines are cooperating. Collaborating is more demanding. In that now, it means that there is actually a requirement for equity. There is requirement for equipment that needs to be put in the collaboration and we find that quite a number of airlines in our Southern African region are also collaborating.

Q: WHAT WERE AASA’S PRIORITIES FOR 2026 AND TO WHAT EXTENT DID YOU ACHIEVE YOUR TARGETS?

A: We have been able to achieve a couple of our objectives and targets. The first one was for us to represent our airlines at the highest possible level in the global affairs. So, through our collaboration with IATA through the IATA Focus Africa, we were able to secure facilities for our airlines to undergo safety and security oriented training. The second one was for us to be able to secure training for our member airlines in other business related environments through partnership with some of our associate members. The third one was the focus on skills development, not only at the highest level but at the global level. We were able to secure at least, some cooperation and partnership with some of our associate members and our regulators to be able to train and keep the skills levels so that there is no shortage of skills manpower for our members.AM

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Albinus Chiedu

Albinus Chiedu is a journalist, aviation media consultant, events management professional, and author. He has practiced journalism since 2000.

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