1. Developing Intra African Network
AFRICAN AIRCARGO SUMMIT 2016
Developing Intra African Network
By Sanjeev S. Gadhia
CEO – Astral Aviation

2. Who we are – What we do
All-Cargo Airline which is based at JKIA, Nairobi - Kenya and operational for 16 years. Designated by Government of Kenya as a National carrier.
Strategic Partnership with Network Airline Management (UK) with a combined fleet of 1 x B F + 3 x MD-11F + 2 x B F + 1 x DC9- 34F + 1 x F27. (Fleet on Order: B F)
Interlines with 6 African Airlines in addition to 16 Airlines from Europe, Middle East & Asia.
European Hub: Liege (Belgium)
African Hub: Nairobi. (Lagos & Johannesburg new hubs)
Scheduled Freighter Network: 20 Destinations
Charter Network: Destinations
Membership: AFRAA, IATA-ICH, WCA

3. AFRICA NETWORK
Dedicated B Scheduled Freighter from Nairobi – London, Stansted & Liege, Belgium.
Dedicated B Scheduled Freighter from Liege to Lagos, Port Harcourt, Luanda, Niamey & Nairobi.
Dedicated B F / DC9F from Nairobi to Dar-es- salaam, Mwanza, Zanzibar, Kigali, Entebbe, Juba, Mogadishu, Moroni & Pemba
Consolidation of African cargoes in Europe, USA, Asia, Middle East, South Africa via GSA Network of NAS.
On Demand Charter to over 50 African destinations for aid and relief, project cargoes, peacekeeping….

4. Membership Full IATA Membership
EXPANSION STRATEGY
Network Expansion
East Africa From 8 to 14 new routes
West Africa New hub in Lagos or Accra
South Africa New hub in Johannesburg
Fleet Expansion
International Increase B747F Fleet
Intra Africa B F & Cargo Drones
Membership Full IATA Membership
Infrastructure Investments in cargo infrastructure

6. Existing Intra-African Hubs
OVERVIEW OF INTRA AFRICA NETWORK
Existing Intra-African Hubs
East Africa: Nairobi & Addis Ababa.
South Africa: Johannesburg.
West Africa: Lagos.
North Africa: Casablanca & Cairo.
Airlines operating on the Intra African Network
East Africa: Astral Aviation, Ethiopian & Kenya Airways.
South Africa: South African Airlines Cargo.
West Africa: Allied Air & DHL Aviation.
North Africa: Egyptair & Royal Air Maroc.

7. Astral Aviation B747-400F / B727F / DC9F / F27F
FREIGHTERS ON INTRA AFRICAN NETWORK
Astral Aviation B F / B727F / DC9F / F27F
Ethiopian Airlines Cargo B LRF / B F
Kenya Airways Cargo B F
South African Airways Cargo B F / B F
Allied Air Cargo MD-11F / B F
DHL Aviation C208, ATR42/72, B F
Egyptair Cargo A300F & A F
Royal Air Maroc B737F

8. Return Freight: Lack of return cargoes / imbalance.
KEY FACTS ON INTRA-AFRICAN AVIATION
Growth: % pa Growth.
Belly Vs Freighter: Limited capacity on belly due to narrow-body fleet, hence more freighters are needed intra-Africa.
Return Freight: Lack of return cargoes / imbalance.
Connectivity: Limited intra-African connectivity.
Co-operation: Lack of co-operation between African airlines
Liberalization: Lack of liberalization and restrictions on traffic rights restricts accessibility / growth / potential.
Foreign Carriers: 80% market-share to/from Africa & 40% intra Africa ! Direct flights to key destinations in Africa.
High Cost: Jet Fuel, Cargo Handling, Royalties & Taxes

9. Infrastructure: Development of new cargo terminals / PPP’s
POSITIVE STEPS ON INTRA AFRICAN SECTOR
Liberalization: Creation of “Single African Air Transport Market” in 2017 by 20 African countries will improve market access, connectivity and new traffic.
Regional Trade: Creation of Tripartite Free Trade Area (Tripartite FTA) between 26 African countries. (632 million people / 57% of Africa’s population / GDP of US$ Trillion / 58% of Africa’s GDP) will boost regional trade.
Infrastructure: Development of new cargo terminals / PPP’s
Middle Class: Growth in the Middle Class population (300M / %) and role of e-commerce and mobile pay.
Lobbying: AU, AFCAC, AFRAA, ICAO & IATA

10. Conclusion
INTRA-AFRICA sector has the highest growth rate (10-15%pa) and offers immense opportunities for African airlines.
HUB’s of Johannesburg, Nairobi, Addis Ababa, Lagos and Cairo offer good opportunities and connectivity to their domiciled airlines.
CHALLENGES do exist for African airlines however the OPPORTUNITIES of further liberalization and increase in regional trade will boost the intra-African sector.
AFRICAN AIRLINES will need to invest in more freighters and expand into new regional markets, as the intra African sector will offer better yields and profitability.

11. Welcome to AFRICA