Africa's lack of adequate air infrastructure means a loss of trade, revenue, and investment. The region's air infrastructure network sorely needs an update, and the recently-proposed Single African Air Market (SAATM) initiative aims to catalyze this change. With 23 signatories, SAATM aspires to fully liberalize intra-African transport and create a unified air transport market by implementing the Yamassoukro Decision of 1999, ultimately serving as the impetus for Africa's economic integration. While the Yamassoukro Decision entails a number of market reforms, it has not evolved since 1999, despite the significant changes in the air transportation market. Considering SAATM is a reincarnation of the two decade-old Yamassoukro Decision, it is up to airlines to bridge the gap and modernize, by developing and adopting a digital-first framework to pricing, training, and communication between airlines, airports, and consumers. A connected continent requires the participation of all 55 African Union member states. Without the support and implementation by the remaining 33 states that have not ratified SAATM, the agreement will fail.
Technology and increased data could help these airlines better understand their target markets, implement dynamic pricing, reach new consumers, and ultimately expand across the continent. The global trend of digital transformation across all industries is taking root in Africa in sectors from fintech to education to healthcare. Such forward-thinking technology integration is just as crucial to developing the African aviation industry. African airlines are undercutting their own success by depriving people across the continent from access to air travel,. While a number of low-cost African airlines such as South Africa-based Kulula and Tanzania-based fastjet have expanded in recent years, they operate only in a handful of markets and have struggled to secure funding from both governments and private investors. Yet the popularity of these airlines highlights the market potential for airlines that price in accordance with local incomes. Increased technology can also help better train Africans to work in air transport jobs. Ethiopian Airlines hosts the continent's largest aviation academy where it trains pilots, ground staff, maintenance technicians, cabin crew, and management students from across Africa. The training center is capable of training 4,000 students annually, and is equipped with market-leading simulators that ensure students are trained to the highest possible standard. Increased training capabilities and skills for employees will make African carriers more competitive in a global market.
By implementing smart technology and improving airline-to-customer communication, airline-to-airline communication, and airline-to-airport communications, carriers can save money by providing on-time flights while providing a more enjoyable passenger experience. The US Federal Aviation Administration found that advanced technologies that provide better and more frequent data aggregation tend to improve collaborative decision-making and reduce delays, as airlines can schedule flights more efficiently. Google recently announced that is it developing a new feature that will use big data and artificial intelligence (AI) to predict delays in advance of official announcements from the airline. While this capability does not mitigate delays, it provides passengers with the information for greater flexibility to make alternative plans. When airline-to-airline connectivity is improved, it will enable code-sharing to permit passengers who have purchased tickets on one airline to easily fly on another airline by paying a small interline fee. The two airlines can settle tthe charges behind the scenes through connections via a switching platform. By embracing a digital ecosystem, airlines can improve communication with all stakeholders – customers, other airlines, and airports – to increase efficiency and facilitate smoother travel.
Rwandan President Paul Kagame, currently also serving as African Union President, has been lauded as the doer needed to implement a project as ambitious as SAATM. But for SAATM to truly succeed it needs the whole continent to support and enact it. At its current capacity and without the buy-in of all 55 AU member countries, SAATM has major holes in key markets, from Senegal to Tanzania. According to Raphael Kuuchi, Vice President for Africa at the International Air Transport Association (IATA), if 12 African countries open their markets and increase connectivity, an additional 155,000 jobs and $1.3 billion in GDP would be created. A common aviation market cannot exist without all 55 countries – the onus is on the AU to ensure that the remaining 32 countries come on board.
SAATM makes progress in cutting the red tape, but it is only the first step. In order to harness Africa's sky-high potential, the AU must push universal ratification and airlines must bridge SAATM's technological gap. Consumer demand for African air travel grew by 7.5% in 2017, which was on par with the global average, but African carriers are missing out on a multi-million dollar market unless they tap into tech-driven culture to bring innovative pricing, training, and communication strategies to the air travel market.
Bunmi Akinyemiju is CEO of Venture Garden Group, a leading provider of innovative, data-driven, end-to-end technology platforms
