Climate change[ edit ] Radiative forcings from aviation emissions gases and aerosols in as estimated by the IPCC Like all human activities involving combustionmost forms of aviation release carbon dioxide CO2 and other greenhouse gases into the Earth's atmospherecontributing to the acceleration of global warming  and in the case of CO2 ocean acidification.
Tickets are significantly more costly for similar flight times and distances. The historical reasons for this air travel difficulty in Africa are numerous. From governments which restricted market access for private participation while trying to protect inefficient state-run airlines, to the requirement for difficult and costly agreements to expand to new destinations.
The difficulty in air travel also has other unforeseen costs most notably in reduced links between countries, lost trade and investment, reduced tourism, and the associated jobs that are not created.
Notwithstanding these challenges, the continent is witnessing a steady growth in its air traffic. Given the rise in air passenger traffic, it will be short-sighted for airports to rely solely on income from airport charges.
Lower airfare can be achieved if they paid more attention to what in aviation economics is known as non-aeronautical assets i. Sectors such as tourism and hospitality would also benefit.
A report about South African airports gives real life meaning to this submission. The challenges of interconnecting flights and opportunities in non-aeronautical revenue, are not news to many governments.
These efforts would be a win-win situation at best. This will require investments not just from governments but from the private sector as well.
Mind you, one key factor behind the higher costs of tickets in Africa is the relatively small number of passengers, the costs of airport infrastructure, and the difficulty in attracting long term private sector investment. Indeed, if a few passengers have to indirectly pay for infrastructure built using short term financing then the burden can get quite large given that more of the costs will need to be included up front in ticket prices.
This will of course reduce ticket prices which should positively influence passenger numbers, triggering a virtuous cycle. The key strategy for private sector investment therefore, involves lengthening the financing terms for airport infrastructure. Longer term financing implies lower ticket costs as infrastructure costs are more spread out.
Accessing long-term financing will however require institutional arrangements to deal with the risks involved. Extra financing options outside of ticket prices also play a vital role in airport infrastructure financing.
That is why issues on business partnerships aimed at improving extant services or creating new revenue facilities and resources would take the centre stage at the ACI conference.
It is hoped that experts and investors meeting at the event would also look critically at the different roles that partners can play in the transformation and development of the industry through business innovation in airport retail and other such avenues.
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Of course, earlier versions of such meetings have yielded desired fruits, producing some of the current growth experienced in the industry, while creating enabling environments for consolidation.
Before the issues of investments, safety standards and environmental concerns had been focus of deliberations, especially as they interface with infrastructure. As a direct gain from previous ACI conferences, Africa has made significant strides in improving its safety record with regards to aviation.
Certainly, there is still room for improvement. As passenger numbers increase, continued special attention will have to be paid to maintaining and improving the safety records in African aviation.
I will be watching out for the panel discussion on tax-free shopping which is the first source of non-aeronautical revenue in most airports around the world.
It is a problematic issue as its future is uncertain in many airports given the new national and regional regulations such as the ban on the sale of cigarettes and alcohol or the limitation of transport of purchases by air carriers. The conference will hold in Lagos from the 14th to the 20th of April at the Lagos Oriental Hotel and will hopefully result in ideas and solutions for providing aviation infrastructure for an expanding African aviation sector.
Obikili is an economist working in Nigeria and South Africa.From ground school to CFI, online training to maintenance, our goal is to help you be the best you can be. Our integrated aviation training system has the most comprehensive training packages available.
Infrastructure development Cost-effective and appropriate infrastructure development is critical to the sustainability and expansion of African aviation. Consultation and collaboration among airlines and their infrastructure partners during planning and development is crucial.
As Airbus, Boeing and others focused on selling to China, by all outward appearances, China is deploying its infrastructure development dollars across Africa to seed and cultivate a future export market for its own commercial aerospace ambitions.
If it is done alternately and India hosted it last year, it means that it should have been Africa’s turn this year. So, what happened? There is a process for bidding for the hosting. Thank you to everyone who attended the Aviation Finance Conference The Aviation Finance Conference took place on October 2nd-3rd in Dublin, Ireland, and which heard from CEOs, CFOs and aircraft trading chiefs representing over half of the world's leased fleet on how the aviation finance eco-system is set to evolve in the context of potential demand patterns for aircraft financing.
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