Nairobi — Member airlines of the African Airlines Association (AFRAA) have placed orders for 154 new aircraft, up from 84 aircraft on order last year.

The new orders, placed with aircraft manufacturers Airbus, Boeing, Bombardier of Canada and Embraer of Brazil, follow growing demand for air travel in the continent. Traffic carried grew by over seven per cent last year - a tempo expected to be maintained up to 2009.

Addressing members of the AFRAA during their Annual General Assembly held in Mauritius last week, Secretary General, Mr Christian Folly-Kossi, said African carriers are increasing frequencies and launching new inter-continental routes despite growing competition from foreign airlines.

"Some airlines have modernised their fleets, and 154 more new and modern aircraft are on order. New routes and markets continue to be opened on intra-African routes across the continent," he said.

More carriers are joining global alliances. South African Airways and EgyptAir have joined Star alliance, while Kenya Airways became a member of the Skyteam. "Ethiopian Airlines may soon choose a global alliance partner too," he said.

Afraa forecasts put Africa aircraft requirement between 2006 and 2026 at 490 worth $50 billion. The fleet renewal process presents funding challenges for African airlines, which requires the intervention of governments and development institutions.

Afraa member airlines fleet stood at 478 as of November 2007; comprising 377 jets, 92 turbo propellers, three helicopters, six aircraft from the former USSR, Folly-Kossi said.

The real average GDP for the African region is expected to grow by six per cent for 2008 and 2009. This will give the impetus to African airlines to improve their passenger growth rates from an average of 5.7 per cent achieved for 1996-2006 to an impressive average of 7.1 per cent for the period 2007 to 2009.

The Secretary General pleaded with African governments and parliaments to ratify the Cape Town Convention to reduce aircraft financing costs. "It is anticipated that African Airlines will be seeking Ex-Im financing support for an estimated $1.2 billion in the next three years and the saving - if all the States of these airlines ratified the treaty - is an estimated $12 million," he said.

On liberalisation, Folly-Kossi advocated for the formation of the "Club of the Ready and Willing States" to fast track the 1988 Yamouskro Decision which called for African countries to reduce red tape and to open up their skies to airlines from fellow African countries. Currently, most African countries are more willing to allow Middle East and European carriers access to their airports as opposed to perceived "competitors' from Africa.

Folly-Kossi called for a common 'African Negotiating Guideline' with EU Member Countries and for a Joint Fuel Purchase agreement among African carriers. "Three meetings have been held on Joint Fuel Purchase plans and the project is progressing well. We are learning from members of the Arab carriers association," he reported.

And although African carriers are progressing well on the implementation of e-ticketing, the biggest challenge presently is interlining. Some 19 African airlines (including non-Afraa members) issuing e-tickets today have not signed a single inter-lining agreement.

Giving his report to Afraa members, Folly-Kossi said that this year, the association admitted into its membership Virgin Nigeria, Aero Contractors, Toumai Air Tchad and Nasair. In addition two partners - Lufthansa Systems and Safran, joined the Afraa partnership programme.

The Secretary General admitted that the African airline industry in general is still fragmented, weak and fragile. However, the continent's major carriers are gaining strength and are well positioned for the competition

"Afraa will continue to support member airlines in all their endeavours to ensure that they increased market share, remain viable and profitable in the years ahead," he pledged.