2.6 Conclusion
The aim of this chapter was to introduce to ASECNA's air
transport industry, and to find out its main characteristics. This is what was
found.
1. ASECNA region is characterised by under development and
extreme poverty
2. Air Transport infrastructure is in a bad state or is largely
insufficient and the substitutes to air transport are poorly developed.
3. The airline industry is very weak, and mostly composed of
small aircraft
a. Local companies are facing economic and financial
difficulties
b. Operating costs are hit by soaring fuel costs, and low
aircraft utilisation
c. Yields and margins are low on the domestic market
d. Most local airlines are very small and very often
inefficient
e. The fleets are very old
f. The long haul and medium haul markets are dominated by
foreign carriers
g. The domestic market is insignificant
4. Air travel is still constrained
a. On the demand side by low incomes
b. On the supply side by regulations
5. Some changes are being observed
a. Aircraft manufacturers expect a fleet renewal over the next
years
b. Liberalization policies are slowly being adopted on the basis
of the Yamoussoukro decision
c. New entrants are expected, even low cost carriers
What do these characteristics mean for air navigation service
provision and for ASECNA?
The poor development of air transport substitutes means air
transport is crucial to ASECNA region and should be among the priorities. In
order to develop safely and orderly, the region's air transport industry needs
a reliable air navigation infrastructure and an adapted air navigation service
provision. Air transport cannot develop without these conditions.
Airlines facing difficulties need to improve their efficiency
to mitigate the effects of high fuel costs. With the very low level of yields
on the domestic markets and on some international routes, and given the ultra
competitive environment in a limited number of profitable routes in ASECNA, it
is unlikely that there is significant scope for a recovery in the yields in the
next years. Airlines are going to renew their assaults on costs according to
African Airlines Association (AFRAA). These include flying the shortest routes,
carrying optimum of fuel, cruising at optimum speed, minimizing flights at low
altitude during descend and climb. Therefore ASECNA must deliver enough
capacity and airspace flexibility to its customers
But efficiency also means that ASECNA must deliver a cost
effective service provision.
These airlines' fleets are often very old. Ageing fleet means
they are unable to cope with technological advancements and automation of
security and safety systems. However the fleet renewal expected by
manufacturers means higher speeds, and increased speed variability in ASECNA's
airspace.
The predominance of foreign carriers in ASECNA means the agency
must pay attention to their requirements as well as those of local airlines.
The liberalisation process and the growth of economies in the
region will have a positive impact on competition and on air travel. ASECNA
must anticipate these mutations, and their foreseeable impact on the air
navigation system, and articulate its strategy to match the other exigencies
mentioned above.
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