Demand Takes off despite the Downturn: Emerging from a Period That Has Seen a Volatile Fuel Price Coupled with a Global Economic Downturn, the Prospects for Africa's Aviation Industry Might Be Viewed, at Best, as Difficult. Yet the Picture Is Not Entirely Gloomy, Reports Stephen Williams

By Williams, Stephen | New African, August-September 2009 | Go to article overview

Demand Takes off despite the Downturn: Emerging from a Period That Has Seen a Volatile Fuel Price Coupled with a Global Economic Downturn, the Prospects for Africa's Aviation Industry Might Be Viewed, at Best, as Difficult. Yet the Picture Is Not Entirely Gloomy, Reports Stephen Williams


Williams, Stephen, New African


Not only is next year's FIFA World Cup hosted by South Africa forecast to increase airline passenger demand from across Africa and further a field, bur one investment bank's research into the aviation sector suggests that, even with the financial slowdown, the outlook is quite positive. On the back of Africa's continuing growth in per capita income as well as rapid urbanisation, the research asserts, some African countries will see annual air travel growth rates of more than 9% over the next decade.

[ILLUSTRATION OMITTED]

In the first eight months of the 2008-09 financial year, Ethiopian Airlines' revenues rose by an astonishing 45%, despite the global economic crisis. In local currency terms, the airline earned Br8.37bn ($745m) over eight months, with gross revenue of Br6.12bn ($545m) on ticket sales for nearly two million passengers.

The airline's operational capacity has been increased with the acquisition of three additional aircraft. "The airline has bought a cargo plane for $60m and leased two Boeing 757s and a Boeing 737-800," Girma Wake, its chief executive reported in June.

But Kenya Airways is not that lucky. It suffered a Sh5.6bn ($76m) loss for the year ending March 2009, compared to Sh6.5bn ($88m) pre-tax profit recorded during the same period last year. It is the airline's first loss in the 13 years since it was privatised. Some comfort was, however, taken in Nairobi with the fact that the company's revenues were up by 19% from Sh60.4bn ($822m) in 2008 to Sh71.8bn ($977m) this year. Although Kenya Airways' earnings from passenger traffic, cargo and handling services rose by over 10%, the airline had clearly misjudged the oil market and was continuing to pay a high price for its fuel because of its hedging strategy.

A similar misfortune seems to have befallen South African Airways (SAA); it could be facing another financial crisis this year if penalties are exacted over a contested order for 15 new planes. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Demand Takes off despite the Downturn: Emerging from a Period That Has Seen a Volatile Fuel Price Coupled with a Global Economic Downturn, the Prospects for Africa's Aviation Industry Might Be Viewed, at Best, as Difficult. Yet the Picture Is Not Entirely Gloomy, Reports Stephen Williams
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.