Better overall connectivity could bring revenue larger than the individual GDPs of 70 per cent of the countries in Africa
African aviation is a hidden source of a potentially large direct revenue as per AviaDev’s estimations in conjunction with Midas Aviation and Futureneers Advisors.
With regard to African aviation, better overall connectivity could result in higher revenue. This includes new flight routes to, from, and within Africa and connecting the largest airports in each African country.
At present, only 34 per cent of the market is being served. Serving only about one third of the market means the revenue is $19bn short of its potential annual revenue.
“We’ve looked at how well-connected Africa is in terms of the flights between the largest airports in every country, which mostly means the capital cities. Only a third of these routes currently have regular air services,” said Rebecca Rowland, partner at Midas Aviation.
AviaDev helps to create new partnerships and routes
AviaDev is now in its fourth year of existence. The event brings together airports, airlines, tourism bodies and suppliers. Through its setup, the aim is to establish new partnerships and routes. Its mission is to connect the largest airports in each African country with one another.
“AviaDev aims to challenge the status quo through encouraging disruptive thinking,” said Jon Howell, managing director of AviaDev.
“We believe our new mission crystallises the opportunity that African aviation presents, and we look forward to driving the industry forward and measuring the progress made.
“We are encouraged by the drive on the continent towards partnership and collaboration,” he added.
— ADB SAFEGATE (@ADBSAFEGATE) April 25, 2019
Moreover, improving the overall connectivity could result in additional hotel growth which would bring in even more revenue.
Martin Jansen van Vuuren, founder of Futureneer Advisors, said: “Considering the anticipated increase in air connectivity, estimations on the number of room nights and expenditure per person can be made.
“With this in mind, it is fair to say that anticipated investment of US$194 billion could be made in new and existing hotels across the continent in the coming years, further showcasing the untapped potential of Africa.”