Business in Sky

Sunday, September 1, 2013

Aviation Business: Constraints To Growth of Business Aviation


Constraints To Growth Of Business Aviation

General economic activities in a country determine the growth rate of business aviation therein. However, in the midst of such huge potential uses for business aviation in Africa lie several limiting factors top of which is the low level of economic activity in many of Africa's states. Though African economies have continued to grow and outperform world average, the difficulty of getting approvals and doing business continue to be a cog in the wheel of attracting foreign investments. Corruption remains a stumbling block also, while even oft reported GDP growth has not translated to economic empower-ment for the majority of Africa's population.

Political Instability

This continues as a recurring decimal in Africa's geo-politics and makes many a business executive avoid travelling to Africa in order not to be caught in its web of political uncertainly and whirlwind. From Cote d'Ivoire in the West to Somalia in the East, and from Cairo, Tunisia and Tripoli in the North to Congo DRC in the South, Africa has refused to shed its toga of a perennial conflict region.

Administrative And Regulatory Bottlenecks

Where political and economic situations do allow business aviation to thrive, administrative delays by Civil Aviation Authorities in Africa in processing of flight permits are a major threat to developing African business aviation market. A source at one of the leading fixed based operators in Africa notes that on average CAAs in Africa require 72 hours to process permits. Business aviation is based on speed and flexibility and a 3-day period to process a permit for a business trip does harm to business aviation.

Others

Additionally, safety and security issues have been known to affect the growth of business aviation in Africa.

Uncertainties in fuel availability especially avgas, and cost of acquiring business aircraft and running a business aviation unit contribute further to limitations on business aviation.

These challenges are further exacerbated by poor air traffic and airport infrastructure.

Conclusion

The role of business aviation in Africa's economy will grow in the coming years as GDP and other parameters improve. Africa's need for business aviation is expected to increase correspondingly as long as Africa's resources keep attracting investments from other continents.

What is needed is to speed up the process of its evolution and thereby releasing its innate energies to contribute to employment and general economic well being of the continent. To do this, however, governments in Africa need to create an environment not only favourable to free enterprise but also able to protect investments and secure lives of persons within their borders.

Having said this, the future is definitely bright for business aviation in Africa.


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