Sunday , 25 September 2022
Secretary General of African Airline Association (AFRAA), Abderahmane Berthe speaking virtually at the 3rd Aviation Leadership CEOs Forum/Aviators Africa Tower Awards themed Corporate Governanace Structure: A Pathway to sustainability in African Aviation.

Corporate governance, other challenges leave African airlines unprofitable for 11 years – AFRAA

SECRETARY General of African Airline Association (AFRAA), Abderahmane Berthe has said one of the consequences of the myriad of challenges (including lack of corporate governance)  that have bedeviled the airlines in the continent for years,  is 11 consecutive years of non- profitability of carriers in the region.

 

 

He said this while speaking among an array of global industry players and investors in air transportation who graced the 3rd Aviation Leadership CEOs Forum/Aviators Africa Tower Awards  themed Corporate Governance Structure: A Pathway to sustainability in African Aviation.

 

 

Berthe also said  the role of responsible leadership in the sector cannot be over-emphasized stating that corporate governance is about making sustainable business decisions which take into account interest of all stakeholders.

 

He said,” Africa has been facing various challenges for many years;  we don’t need to go into these challenges we all know already. The consequences  is the  non-profitability of African airlines for 11 consecutive years. We need extreme leadership to enforce the recommendations which we all know will move the industry.

 

 

Ethiopian Minister of Transport,  Dagamawit Moges who chaired the occasion virtually in her address said that for a profitable and sustainable aviation industry in the continent, there needs to be modern corporate governance that prioritizes transparency, accountability, and security.

 

 

She charged  African governments to  proffer forward looking solutions for an effective aviation  sector’s  corporate  governance  structure stressing that among others,  it is a key determinant of an airline performance.

 

Moges said, “For  the  success  of  an  African  airliner  transparency,  accountability,  and  security  are  critical  ingredients.    All  these  are  important  to  form  solid  professional  relationships  among  the  aviation  sector  stakeholders which include board directors, managers, employees, and shareholders.

“As  the  Aviation  industry  has  followed  the  principles  of  corporate  governance  in business  operations  through  different  administrative,  it  is  a  must  that  the  industry  considers  an  effective,  transparent,  and  measurable  administration  which  shall  create confidence  for  Shareholders,  investors,  and  stakeholders,  which  in  turns,  will  be  the key factors to generate return and maximize value as well as enhance competitiveness of the industry to sustainable growth,” she said.

 

 

Convener of the Aviation Leadership CEOs’ Forum (ALCF), Tony Ukachukwu in his welcome address said the intent is to correct the anomaly in the system in the continent  stressing that a lack of corporate governance  fuels unethical practices, indiscipline and  contributes to low life span of airlines in Africa among others.

 

 

He stated,”To make this edition of ALCF achieve its intended objectives, we have attracted delegates of high aviation experts within the different aviation value chain to discuss leadership challenges in African aviation and proffer sustainable solution(s).

 

” Our belief is that no significant development can be made in aviation unless the leadership gaps are addressed. This is because many airlines in Africa are one man show with the owners in full (fist) control of decision making. This approach of leadership, which fuels unethical practices, fraud, indiscipline; lack of accountability and contributes to low lifespan of airlines in Africa.

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