African airlines face a persistent challenge that undermines their growth and profitability—the inability to maintain modern aircraft independently. According to George Uriesi, Chief Operating Officer of Ibom Air, this systemic issue leaves many carriers dependent on foreign competitors for critical maintenance services. These competitors charge steep premiums for maintenance, further straining the fragile operational efficiencies of African airlines.
“Owning modern equipment without internal maintenance capabilities remains a debilitating issue for the sustainability of African airlines’ business models. You must outsource it to other foreign airlines competing with you. They provide services for you at a huge premium while competing against you,” Uriesi explained.
This dependency has driven up costs significantly, forcing African airlines to operate on inefficient business models that limit their competitiveness. Outsourcing maintenance significantly increases costs for African carriers compared to the streamlined in-house operations of foreign competitors, Uriesi noted. Consequently, these airlines face increased operational expenses, reduced profit margins, and diminished capacity to compete effectively.
Uriesi emphasized that Ethiopian Airlines, Egyptair, and SAA offer practical blueprints for African carriers seeking to improve operational sustainability.Uriesi emphasized that these airlines have built ecosystems designed to integrate key operational components like maintenance, simulators, and training. These ecosystems allow airlines to maintain modern aircraft independently and create revenue streams through third-party services. “ET built capacity over time as it was clearly essential that this component of the business had to be ‘inside’ to be an efficient and profitable airline,” he said. READ ALSO: Ibom Air ED/COO Highlights Collaboration at NAFSA Conference
These airlines have leveraged their ecosystems to not only maintain their fleets cost-effectively but also generate additional revenue streams through third-party services. For example, Ethiopian Airlines operates comprehensive maintenance repair and overhaul (MRO) facilities, which serve other airlines while ensuring operational efficiency for their fleet. Similarly, Egyptair’s investment in the A220-300 aircraft included simulators and training infrastructure to sustain operations and offer services to others.
“Egyptair invested in 12 A220-300s plus a flight simulator and cabin crew mock-up at once. We don’t know how profitable or not Egyptair is with this model, but they put their eyes on the big picture. They must have a modern airline to profile and market Egypt and bring people to Egypt,” Uriesi observed.
These ecosystems demonstrate how African airlines can achieve the efficiency required to compete in the global aviation market. Uriesi called on the industry to either develop internal capacities or rely on regional partnerships to establish shared ecosystems. “ET has shown us that building your own ecosystem gives you efficiency advantages that make you a reliably profitable airline as long as you keep your focus,” he said, advocating for strategic collaboration to ensure sustainability.
In conclusion, the path to sustainability for African airlines lies in reducing operational inefficiencies through integrated ecosystems or cooperative frameworks. Strategic investments in MRO capabilities, simulators, and training facilities will enable African carriers to maintain modern aircraft independently while enhancing profitability and market presence. As Uriesi aptly put it, “African airlines will just have to try to create their ecosystems in one way or another or rely on one another to secure the efficiencies that are required to build proper airlines.”
