Ground Support Worldwide - 24

INTERNATIONAL

The Pitfalls and Potential of Ground
Handling in Africa
With ground handling forecast to grow on the continent, Africa faces both unique
growing pains and opportunities as the region's air transport industry booms.
By Mario Pierobon

he aircraft ground handling sector in Africa
is geared to grow substantially as a result
of the forecast demand for air transport,
thereby enhancing intra-African and international business, trade and tourism. Indeed there
are significant opportunities - but also threats - in
doing business in the aircraft ground handling
environment throughout the African region.
"Data from major aircraft manufacturers suggest
that fleet expansion and replacement is paramount
to satisfy the demand for air travel. Hence forecasted demand will not only increase the number
of passengers but this growth will also drive airport infrastructure expansion. This prospect may
allow Africa to enhance and expand its limited
connectivity. More importantly, the opportunity
for ground handling companies will increase in
scope. Ground handling companies will have to
increase their service offerings to accommodate the
increased demand of the carriage of passengers,
baggage and cargo," says Vees Lochan, chief operating officer at Airlines Association of Southern
Africa (AASA).
"One of the major threats that ground handlers
face in Africa is that the concession to operate at
airports is provided by the Airport Authority, and
it is for a set period. This impacts the long-term
investments in ground support equipment (GSE) as
it is then limited to the concession period granted.

24 GROUND SUPPORT WORLDWIDE

MAY 2019

In South Africa, ground handling contracts are
often granted on an open tender basis.The Airport
Authority sets the standards required and potential
ground handling companies compete/bid for the
right to operate at airports. In some jurisdictions,
only the Airport Authority is permitted to provide
ground handling services. In most cases this tends
to be non-competitive."
"Ground handling used to be provided by
African airlines at their respective home bases.
However, Africa generally follows the liberalization trends of aircraft ground handling. As Africa
represent only 2.5 percent of the world air transport
market, ground handling service providers surely
continue to assess business opportunities. Indeed
the 'big names' have more recently begun to operate
at relatively big airports in the region," says Gaoussou Konate, consulting director technical and operations at African Airlines Association (AFRAA).
"Business opportunities exist in the relative big airports, and the challenge of being profitable even for
duopoly handlers are real at several international
airports as their markets are just tiny. Generally,
big African carriers handle their flights at their
home bases and provide their services to foreign
carriers. Four out of the top five air carriers face
fierce competition for ground handling business
at home either with several local companies or the
international handlers."

Ground Support Worldwide

Table of Contents for the Digital Edition of Ground Support Worldwide