From September 18, 2024, flights of the national airline Air Senegal to New York are suspended. Then, in a few days, it will be the turn of the lines that connect Dakar to Milan, Barcelona, Marseille and Lyon. Outside Africa, only the connection to Paris will remain operational. Decisions that can be explained by the financial difficulties encountered by the company, whose hole is estimated at 150 million dollars. But Air Senegal is not the only company to encounter difficulties on the continent.
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In recent decades, all Senegalese flags have encountered difficulties. Before Air Senegal, the country had Air Senegal International, then Senegal Airlines with, beyond the governance issues regularly highlighted, difficulties linked above all to the size of the market and the companies.
But what is true for Senegal is also true for most African countries that have their own company. All these companies lack synergies because they do not have enough planes. “, explains Didier Bréchemier, partner at the Roland-Berger firm, a specialist in African air issues. On the continent, maintenance and logistics are expensive because ” there are not enough planes, there is no large maintenance center on which there can be synergies with a large airline “, the expert continues. ” The cost of all subcontracting is ultimately relatively expensive compared to what can exist in Europe for example. So, they do not have the critical size ” he adds.
Net profit per passenger in Africa much lower than the rest of the world
According to the International Air Transport Association, this year, African airlines will record an average net profit of 90 euro cents per passenger, while the average worldwide is 6 dollars.
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To make this type of company viable, Didier Bréchemier believes that it is necessary to form alliances to ” sharing maintenance resources, sharing aircraft negotiation resources, optimizing crews, crew training “.
A consolidation of airlines that has been done for example in Europe around British Airways, Air France-KLM and Lufthansa. A desire for alliance from which West Africa still seems far. Each State wants to have its own company: a political strategy but also a question of prestige.
Notable exceptions
While many national companies are facing difficulties, a few have managed to pull through. The Togolese company Asky has established itself with its regional connections. In the sub-region, Air Côte d’Ivoire has managed to get back on track and has managed to ensure a balanced budget since 2021. To achieve this, the company has focused on acquisitions, training and partnerships.
There are also the heavyweights, of course: Ethiopian Airlines And Royal Air Marocwith regional services but also long-haul flights. Their secret: having made themselves essential by becoming regional hubs.
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