Business
Africa’s Private Jet Industry on the Rise
Despite the global private jet market suffering severe blows in the 2008 economic crisis, Africa’s private jet charter industry still grows. According to Brazilian aircraft manufacturer, Embraer, there were an estimated 420 business jets operating in the continent in 2012, and expected that the number would rise to over 600 by 2022. While still being small compared to other continents, Africa’s private jet charter industry is one of many industries that are on a steady growth path.
Deloitte and Touche’s 2013 report on the rise of Africa’s middle class estimated that the African middle class will grow to 1.1 billion in 2060, making up 42 per cent of the population. Much of the continent’s development is now riding on its thriving middle class, and the private charter jet sector is no exception.
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“The increasing demand for charter is within the African continents, as this is a growing enterprise for mining. Certain destinations are tricky when it comes to scheduled flights due to runway conditions [and other aspects], so chartering is more of an interest to the consumer at the moment,” Jenny Van Wyk, passenger sales manager for Africa at Chapman Freeborn, told CNBCAfrica.com.
Van Wyk added, “One of the many factors that are encouraging the desire to acquire private jets is, according to analysts, the growing frustration with the kind of services offered by commercial airlines.” According to the International Air Transport Association (IATA), intra-Africa passenger numbers increased by 9.4 percent year on year in January 2013, and continues to be spurred on by strong economic growth in the sub-Saharan Africa region.
While most African countries still have national carriers, with the exception of a few whose carriers have been replaced with other airlines, intercontinental and international flying is still relatively expensive for the every-man. As more Africans begin to demand more facilities and options while flying, the wealthy few have begun to opt out of taking commercial flights and invest in private jet charter flights.
Van Wyk went on to explain, “The commercial flight services are generally poor, experts argue, making wealthy [Africans] opt to acquire their own jets to save the time that would, otherwise, have been lost waiting for flights.” Successful national carriers such as Kenya Airways, Ethiopian Airlines and Egypt Air continue to connect the continent with their continental and international routes. According to IATA’s air passenger market analysis for 2013, African airlines international air travel expanded by 5.5 percent in 2013, but minimal compared to 7.5 percent in 2012.
Other national carriers have however been struggling, such as Air Tanzania, which was disposed of in 2006 after four consecutive years of losses. RwandAir, Rwanda’s national carrier, has also been rumored to have sustained a loss-making path for some time despite still being in operation. National carriers treading fragile ground is nonetheless another opportunity for private flight charter services to expand their base.
