With every passing day and without any signs that the flight ban over Europe might be soon over the world economy is loosing billions of dollars. Air travel is the biggest driver of economic activity with a clear positive correlation between the two. Hence, both tend to increase or decrease together.

According to Brussels- based Eurocontrol, the European Organization for the Safety of Air Navigation, 70% of Europe’s air travel has been brought to a still stand by the Icelandic Volcano.

This has a similar impact on all other regions world wide as incoming and outgoing traffic and trade volumes are connected on both sides of the travel origin and destination equation. The following video shows world air traffic flows between continents during a normal 24 hour day of normal operation.

Considering that 70% of European air traffic is missing it would be interesting to see how the current flow across our globe might look like.

National emotional baggage has handicapped African carriers, making the continent a lucrative target for foreign attacks. But now Africa’s airlines are ready to fight back, using partnerships to reclaim their territory

African countries are like proud parents towards their airlines. They want them to succeed. They want them to be all they can be. They want to bask in the glory of their offspring. But over-protective parenting can be harmful.

While Africa has focussed on wrapping its airlines in cotton wool, it has taken its eye off the predators lurking nearby. Instead of being protected, Africa’s airlines have been left dangerously exposed. Meanwhile, the wider economy has been neglected. “We have to move past the time when paint on the tail is the heaviest part of an aircraft, even an old aircraft,” says Lance Brogden, IATA regional vice-president for Africa.

Africa is home to 30% of the world’s land surface and 14.2% of the world population, but accounted for only 3% of world traffic in 2008 despite the lack of alternative transport and harsh terrain. Over the past decade, African air transport has increased by 6.6%, making it the most rapid growth region after the Middle East, albeit from a low base. African GDP is expected to rise by 4.5% in 2011, compared with the world average of 3.7%. The potential is undeniable, but the reality is challenging.

One aviation executive likens travelling across Africa to a game of pool, where you have to rebound off the cushion – in this analogy, Europe or the Middle East – to get to your planned destination. Point-to-point services are limited. Long-haul services are the Holy Grail to aspiring nations, but regional services are what the continent really needs. The rub is that successful long-haul operations need feed, and regional services need liberal markets. Partnerships are also important, but Africa’s carriers have historically been blinkered by their own agenda.

“Instead of building small, regional carriers, everyone has made the same mistake, of wanting long-haul and large widebody aircraft, without developing the vital infrastructure and the hub needed to support it,” says Royal Air Maroc head of industry affairs Souad Meziane. Airlines Association of Southern Africachief executive Chris Zweigenthal agrees: “This is one reason that the grand plans for long haul don’t work: you need a regional base to feed it. The Middle East carriers are using a feed strategy into Africa, and it is working for them.”

Africa’s cash economy has weathered the financial storm better than most, and it remains a premium market, attracting foreign airlines. “Of course Africa is being attacked by international carriers,” says Embraer sales director Patrice Candaten. “Today, Africa is one of the only positive markets. You don’t expect Emirates to attack Europe. They are going to attack you. This is only the beginning.” And it is not just on long-haul. Emirates is involved in the new Senegal Airlines, and Air Arabia has Air Arabia Maroc.

But, as the cake gets divided and eaten, African carriers continue to bicker among themselves. “We have failed as a continent to unite ourselves and exploit our own resources: whose fault is that?” says Air Seychelles chairman David Savy. “The boat has sailed by, and we have missed it.”

The assault continues. Virgin Atlantic has just announced a new service to Ghana from London, and Brussels Airlines will launch four new West African routes in July, swelling its African network to 18 destinations. “Africa is our second home, and this new investment perfectly reflects that,” says Brussels Airlines co-chief executive Bernard Gustin.

Meanwhile, US carriers are returning to Africa, putting huge pressure on local carriers. But sympathy is not on the agenda. IATA’s Brogden delivered a hard-hitting message at the African Airlines Association general assembly, staged in Maputo last November.

“You need to rise to the challenge, otherwise you don’t deserve this continent and you don’t have the right to moan and whine like girls, complaining and crying when someone else takes it away,” says Brogden. “You can’t afford to lose this opportunity. You are already on the back foot. Congratulations to the guys outside this conference [non-African airlines]. They got it right. But it has to stop. Now.”

Nick Fadugba, the new AFRAA secretary general, says 70% of Africa’s long-haul traffic is carried by non-African airlines. “This is damaging to the African airline industry and to the economies of Africa. We welcome non-African airlines in Africa, but we would like to see our member airlines enjoying a greater slice of the pie.”

But in Africa the status quo is plenty of talk and only limited action. And the entry of foreign carriers proves that if you do not seize an opportunity, someone else will. Fadugba is therefore urging African carriers to take concrete action, to communicate with one another and to form true partnerships. “InAfrica we talk a lot about co-operation,” he says. “We talk more than any other country in the world about co-operation, but – in terms of tangible action – we have not got very far.”

PARTNERSHIPS

To help the process along, AFRAA has hinted that it might be looking to set up a partnership scheme, similar to the Arabesk co-operation among Arab airlines. Fadugba says: “Why can’t we have, in Africa, an African airline alliance with an à la carte menu? I’m not talking about equity. I’m talking about a concrete, tangible strategy to move airlines forward, with co-operation in areas such as simulator training, maintenance and spares pooling. You can compete for traffic on one hand but also co-operate to gain benefits.”

Dapo Olumide is chief executive at newly renamed Nigerian Eagle, which was formerly known as Virgin Nigeria. Olumide agrees with Fadugba, but he is quick to note: “We don’t want to create Air Afrique, some monster which is not going to survive. The world is changing and we don’t have the resources to do it on our own. Even British Airways is not capable of creating the network it would like, so it has to go to partners.”

AFRAA is also urging the continent’s largest players to work with smaller carriers to create codeshares, joint ventures, cross-border and equity partnerships. Ethiopian Airlines is already fulfilling this mission, as a part-owner of Togolese start-up ASKY. But chief executive Girma Wake is keen to see more action. “Have we done enough as airlines? I don’t think our governments would tell us to only maintain aircraft from airline X, Y or Z. If we train staff at one another’s facilities, I don’t think the governments would interfere. But we feel more honoured to work with a big European carrier than to form partnerships among ourselves. This has to be washed out of our systems. Let’s knock on one another’s doors and work together, rather than just working with somebody, somewhere.”

Another example of a big carrier teaming up with a smaller sibling is Tanzania’s Precision Air, which is 49%-owned by Kenya Airways. “I think the message of co-operation is not a fancy, trendy word, but an absolute necessity for Africa,” says Kenya Airways chief operating officer Bram Steller.

And others are looking to join the throng. Gidon Novick, joint chief executive of South Africa’s Comair, says: “We are certainly looking to see how we can help other African carriers, in terms of partnering with them and helping them to become sustainable, reliable airlines.” Comair is looking at several partnership opportunities across southern Africa.

SURVIVAL INSTINCT

But while African airlines recognise the need to consolidate their resources and work together, there is a huge amount of fear and mistrust that larger players will take advantage of their smaller brothers. Zweigenthal says: “Many carriers think that, if they co-operate, they will get dominated and blown out of market, but the sooner we co-operate together, the better.”

“It is a question of building up the confidence of both partners,” says LAM Mozambique commercial director Aderito Macaba. “When the sun rises, both lions and gazelles run: one to eat, the other not to be eaten. We would like to be a small lion and not a gazelle. If we want to succeed we must work hand-in-hand. It is time to wake up and run, for all of us.” Acting as one pride, he believes, is the key for survival.

Mind-set and a lack of communication are still huge obstacles for African aviation. “Sometimes the big players think they are big and that the others are nothing,” says LAM chief executive Jose Viegas. “All they seem to do is complain about their bigger brothers. How are we supposed to ask for their support if they would like to kill us?”

On the flip side, the bigger players are keen to shed their bully-boy image. “The problem is, we are small on the world stage and too big on the African market,” says Kenya Airways’ Steller. “We don’t want to be seen to overwhelm smaller players: co-operation is our goal, not ownership. Our philosophy is to develop a joint market, not to rob someone else.” Wake from Ethiopian is also keen to put things in context. “There is no big carrier in Africa. The largest big carrier in Africa is the same size as the smallest European carrier.”

Wake accepts that, at least in the short term, partnerships can involve sacrifice, but he believes co-operation and idea sharing will lay “proper foundations” for the difficult times. “If all want to win, it just doesn’t work. We have to start to change our mentality,” he says. “I believe, without co-operation, African carriers will find it very, very difficult in the short-term, let alone the next five years.”

POLITICAL BICKERING

Fadugba is also calling for co-operation at national level and he has struck out at a lack of progress towards liberalisation, saying: “The African economy will only start to thrive once political bickering is eliminated.”

Based on the 1988 Yamoussoukro Declaration, the legally-binding 1999 Yamoussoukro Decision set the scene for gradual African air transport liberalisation, through bilateral and multilateral agreements.

“For many people, Yamoussoukro has been on paper gathering dust for 20 years,” says Fadugba. “This is no credit to Africa. We must realise that the real competition is not between ourselves, but betweenAfrica and the rest of the world. Ghana must not look at Equatorial Guinea as a competitor. We have to work together to move forward.”

Some African carriers are still denied market access within their own continent, and Fadugba describes this situation as extraordinary and unacceptable. “Some African states, which have ratified these legally binding documents, have done nothing. This means many airlines are hamstrung when it comes to developing their networks within Africa.” But he also criticises markets that have liberalised their international markets too rapidly, creating an influx of foreign competition, undermining Africa’s airlines and economies.

The African Civil Aviation Commission has been tasked with overseeing progress towards Yamoussoukro and Fadugba intends to work closely with the commission to move things forward. But while progress towards Yamoussoukro’s heady ambitions is widely criticised, very little research has been done, prompting World Bank principal air transport specialist Charles Schlumberger’s doctoral thesis.

Implementation of the Yamoussoukro Decision is being handled by regional organisations, and Schlumberger’s research shows that these bodies are making headway. Several African carriers are already benefiting from Yamoussoukro Decision-conforming bilaterals. He also found that the number of seats offered typically fell in Africa’s liberalised markets. Schlumberger proposes that this is caused by the right-sizing of capacity and the system being cleansed of non-viable airlines.

Looking forward, Schlumberger’s report observes that a “clear majority” of African countries favour full application and countries which have dominating state-owned carriers, such as Egypt, Ethiopia, Kenya, Morocco and South Africa, are pressing ahead. But 20 countries with weak or small state-owned carriers are still dragging their heels. “Where there is very little air transport, there is not a problem. Where airlines are privately owned, there’s not a problem,” says Schlumberger. “The issue lies with ailing flag carriers.”

Although some policy work still needs to be processed by the regional bodies,Schlumberger believes that states forming bilateral deals “may set the motivating example to set up these missing elements”. Royal Air Maroc’s Meziane agrees with the professor: “If things progress, it will only be thanks to the carriers themselves.”

Her views are seconded by Nigerian Eagle’s Olumide: “Governments talk the talk, but they don’t walk the walk. But huge steps have been taken. We’ve now recognised that we shouldn’t leave it to the government. Airlines have to do it themselves.” The liberalisation research supports this. “Royal Air Maroc and Ethiopian have developed strongly, based on bilateral relationships and that is the way forward,” says Schlumberger. “This is how we move forward, not through another two-week conference. Yamoussoukro is alive. People like [Ethiopian's] Girma Wake and Royal Air Maroc are going out to other countries and asking them if they want to come. This is how you implement Yamoussoukro.”

A further issue looming on the horizon is Africa’s inability to negotiate as a block when faced with the might of Europe. Tunisair manager for international affairs and alliances Koussai Mrabet says: “This is difficult, but it is important. The impact of not doing this will be that a lot of African carriers will disappear. The will of the group is better than the will of an individual: 20 are obviously stronger than one. EU carriers can gain the right to fly every route in Europe to Tunis. This is a big danger, especially with low-cost carriers.”

LOW-COST CHALLENGE

Morocco has actively liberalised its market, attracting a deluge of low-cost operators. Since signing key deals with Europe and the USA, tourism figures have leap from 2.2 million to 8.5 million, creating 200,000 new jobs. New private operators such as Jet4you have sprung up and Royal Air Maroc doubled its fleet to 52 aircraft. “Liberalisation has clearly been a success in Morocco,” says Royal Air Maroc chief executive Driss Benhima. “In the first phase Royal Air Maroc did very well, expanding its passengers and doubling its fleet. Now I think the rules are changing.”

Benhima, who is a former transport minister, insists that “development of the national carrier should take second place to liberalisation”, even if this means “losing some ground”. Indeed, Royal Air Maroc has had to refocus on its home market since liberalisation, abandoning its other African airline ventures – many of which were separately hampered by political pressures.

“Transport ministers are not here to protect the national flag carrier; they are here to increase air transport. If it gives tourists increased frequencies and cheaper fares, liberalisation can address national interests. You don’t have to have a national carrier and I don’t think national policy should be to protect the flag carrier at any cost.”

Benhima says states fear losing their national carrier because international routes subsidise vital domestic and regional operations. But Morocco is addressing this issue by using taxes from its newly expanded traffic base to support its fully liberalised domestic market, where operators do not have to pay taxes.

Regional routes are fundamental to Africa’s economic growth. Embraer’s Candaten says Africa’s 70% load factor sits at the bottom of the world league table, while 600 routes lack a daily frequency, showing overcapacity. Only 16% of Africa’s routes are daily. “If you want to go from A to B you have to go via E, F and G,” says Candaten. “Consumers want to fly the shortest way, the fastest way.”

Bombardier statistics show that 75% of Africa’s scheduled operations are domestic, whereas in a mature market the majority are regional. Bombardier Commercial Aircraft marketing and airline analysis manager Frederic Morais says today there are 751 non-stop markets served in Africa, but there is potential to add a further 386 regional routes, including 70 from the continent’s major hubs.

“On domestic and regional services, there are no excuses. We have nobody to blame apart from ourselves,” argues Fadugba. “There are too many excuses for not developing domestic air transport and nobody takes the blame. In reality, there are no excuses for not developing regional air transport.”

But the challenges are clear. Benhima states that he has 4,500 staff and neatly sums up the problem. “This means I have 4,500 chief executives and, in the country as a whole, I have about 30,000 consultants. The relationship between the public and their national carrier is same as the relationship between the public and their national soccer team.”

Brogden from IATA concludes: “We have made a lot of progress. My commitment is ‘no more meetings, only action’. The foundations have been laid. Returns will come from liberalisation, but we must be careful not to blame the governments for being slow. We are accountable. We are the ones to make the changes. It’s far too easy to say, ‘Let’s just look after our own airline.’ There’s no way we can do this unless we throw away our arrogance and work together.” Source: (ATI)

See full graphic

By Daniel Michaels (WSJ) – Airlines world-wide have been slashing flights to match dropping demand amid the economic crisis, but one unlikely region is bucking the trend: Africa.

Long the aviation industry’s forgotten continent, Africa has recently posted a significant increase in the list of destinations served by foreign and local carriers. Routes are traveled more frequently, and the number of nonstop overseas connections is rising.

In the past two years, as airlines globally cut flights by 3.2% during the worst of the industry’s troubles, nonstop frequencies between Africa and major overseas markets jumped 11.4%, according to Innovata LLC, an aviation consulting firm in London.

The growth comes off a low base—Africa accounts for less than 5% of global air traffic—but that is part of the appeal.

Africa offers carriers an underserved market where tickets sell at significantly higher fares than for routes of comparable distance elsewhere. Activity is rising even though routine tasks, such as tanking up on drinkable water, can be challenging. That makes operations expensive, particularly in countries between the Sahara Desert and South Africa. Most passenger facilities are rudimentary, many regions need modern air-traffic control, aviation safety regulators lack resources and airport security poses big concerns.

Delta Air Lines Inc. was forced to delay scheduled route launches last year in part because the U.S. Transport Security Administration withheld certification of some African airports. But Delta, which was the first big U.S. carrier to serve Africa after more than 15 years when it launched flights to Senegal and South Africa in late 2006, still wants to add four destinations this summer that were slated for opening in 2009.

“We’re going to continue to invest in Africa,” said Glen Hauenstein, Delta executive vice president for network planning. “It’s more expensive to operate, but you do get more for it.”

Traffic is being stoked by a combination of foreign business passengers chasing the continent’s resources, local entrepreneurs doing business abroad, and a steady flow of Africans shuttling to and from numerous ethnic communities abroad.

The coming World Cup in South Africa is another factor boosting demand, but growth is evident across the continent. For example, UAL Corp.’s United Airlines, Britain’s Virgin Atlantic Airways Ltd. and Belgium’s Brussels Airlines all recently announced new services to Accra, Ghana.

Airlines in parts of Latin America, Asia and the Middle East are also now posting growth amid the broader industry slump, but no region had been so roundly ignored in the past as Africa.

“Africa is maturing aviation-wise,” said Craig Jenks, head of Airline/Aircraft Projects, a consulting firm in New York. “Carriers look at it as a place they need to be, and not just for specialist airlines, as previously.”

Gradual improvements to Africa’s underdeveloped aviation infrastructure are another catalyst. Senegal is building a new airport near Dakar; Republic of Congo has added runways and terminals at Brazzaville and Pointe Noire; and South Africa has installed a cutting-edge air traffic control system.

“There is a major move in many countries to build or rebuild infrastructure,” said Etienne Rachou, senior vice president for Africa and the Middle East at Air France-KLM SA, the leading foreign airline in Africa.

Still, African skies are the world’s most dangerous in terms of crashes per million flights, and rising traffic could exacerbate the problem. Nigeria and several other countries have made notable improvements recently, but experts see big gaps in safety systems.

One positive factor is that African carriers are starting to reverse years of shrinkage. Intra-African frequencies are up 30% over the past five years, according to Innovata.

As wars, poverty and neglect ravaged Africa at the end of the last century, many of its carriers struggled and shut down. But over the past decade, local players including Kenya Airways, South African Airways, Egyptair and Royal Air Maroc have pulled themselves together. Ethiopian Airlines in January opened a second hub across the continent in Lome, Togo.

African carriers are now expanding links to secondary cities such as Ndola, Zambia, and Ouagadougou, Burkina Faso, whose only air connections have long been either on unreliable local operators or via convoluted routings through Europe.

European carriers are by far the biggest outside players in Africa, due to colonial ties, and the top carriers are battling to grab markets. Air France-KLM leads the race with 42 destinations in 33 African countries. It relies on a mix of Air France’s longstanding domination in French-speaking West Africa and KLM’s strength in the east. Dutch KLM in 1995 bought a 26% stake in Kenya Airways—one of Africa’s best-run carriers—and has since built strong links between their hubs in Amsterdam and Nairobi.

Now, German giant Deutsche Lufthansa AG is racing to catch up by adding flights of its own and with its subsidiaries Swiss International Air Lines and Brussels Airlines. Brussels Airlines is the successor to Belgium’s defunct Sabena, which was once one of the biggest foreign operators in central Africa. The Lufthansa group now serves 36 destinations in 31 African countries, and is linking closely to Ethiopian Airlines, another leading African carrier.

Lufthansa, like Air France-KLM, works to cut costs by finding synergies among its carriers in Africa, such as sharing offices, airport facilities and local expertise. “We are able to grow and increase profits,” said Thierry Antinori, Lufthansa Executive Vice President for Marketing and Sales after announcing four new destinations for Brussels Airlines.

One risk in Africa’s new popularity is that carriers add capacity faster than demand grows, starting price wars that erode profits. The danger is rising as rich carriers from the Middle East and Asia expand Africa services. Fast-growing Persian Gulf airlines boosted Africa frequencies by more than 31% over the past two years, according to Innovata. Dubai’s Emirates Airline recently added its 19th African destination, Dakar.

Still, veterans see room for growth as Africa integrates with the world economy. “It won’t be frenetic competition, but customers will have more choice,” said Mr. Antinori at Lufthansa.

Libyan Airlines is aiming to complete its long-proposed merger with Afriqiyah Airways within two years, to strengthen the carriers’ competitive position. Both airlines are already under a single holding company, Libyan African Aviation, but are yet to proceed to full integration.

“We are trying to work something out with Afriqiyah,” said Libyan Airlines chief Mohamed Ibsem at the last AFRAA meeting in November. “Initially we will codeshare and then we will go into one airline, through a merger, to make the business worthwhile. The idea is for this to take place within two years.”

The carriers are hoping to gain stronger negotiating power from the merger. “While we are separate, people treat us as small airlines. I think after the merger we will be in a better condition to compete and negotiate with the mega-carriers,” says Ibsem.

Combined, Libyan Airlines and Afriqiyah Airways would operate a fleet of 35 aircraft, including 16 long-haul jets. Ibsem adds: “Our network would go up to around 50 destinations when we merge, but that would be certain to increase later on.”

In the meantime, Libyan Airlines is to create a new leisure brand, which it will roll out when it receives the first of its seven new Airbus A320s next autumn.

Ibsem says Libyan Airlines will offer holiday packages, including flights and accommodation, under a new brand to keep the product isolated from its normal regional operations.

“It will be a separate operation, but it will be organised by Libyan Airlines,” he says. “Our target is to attract more passengers and help increase the load factor of our aircraft. By the time our first A320 is delivered, around September 2010, we should have the brand ready.”

Chinese Airline

Chinese carrier Hainan Airlines plans to launch a service to the capital of Sudan, a close political ally of China’s and a major oil producing nation, according to Air Transport Intelligence.

The Civil Aviation Administration of China says in a statement Hainan Airlines has applied for traffic rights to launch a thrice-weekly service from Beijing to Sudan’s capital Khartoum. The twice-weekly service starts 20 November and uses an Airbus A340, says an airline spokesman.

China is investing heavily in Sudan’s oil industry and has close ties to the government there. China’s foreign direct investment to Sudan was in 2005 worth over $300 million (Uncat).  The Washington Post reports that Trade between China and Africa jumped 45 percent, to $107 billion, in 2008, a tenfold increase since 2000, and that the new loans offered during the 4th China-Africa summit in Egypt are likely to sustain the expansion.

Economic development and financial ties also generate movement of people, goods and services between two points of gravity. Air transport correlates perfectly with trade activities and often fuels the pace of development between two trading regions.

The fact that a Chinese airline is opening air services to an African country shows that these trade relations must be quite advanced and a very serious matter to China. Hainan Airlines will have a monopoly on the connection Bejing to Khartoum as no other airlines operate on the route.

Departures

Planning to visit Eritrea this winter? You will have several options to get there by air during the coming winter schedule 2009/10, which will start by the end of this month.

According to the latest update Eritrean Airlines, Nasair, Lufthansa, Egyptair, Yemenia and Sudan Airways will operate flights to Eritrea from various destinations.

The number of weekly departures to Eritrea shows a net decrease of two for the coming month of November compared to the same month last year. This is mainly due to the reduction of number of flights operated by Eritrean Airlines and Nasair.

Although Eritrean Airlines ceased operating flights from Asmara to major European cities, the national carrier continues to serve flights twice a week between Asmara and Jeddah. Eritrea’s second carrier Nasair will operate scheduled flights from Asmara to Assab, Cairo, Dubai, Rome, Jeddah, Khartoum and Massawa.

United Airways offers flights to Asmara under a code share agreement with Lufthansa from the United States via Frankfurt. The most consistent schedule is offered by Lufthansa, which will continue to fly three times a week from Frankfurt to Asmara via Jeddah.

In terms of price Egyptair is one of the cheapest options to fly to Eritrea, if tickets are booked well in advance. In comparison to the same period previous year, the Egyptian carrier has increased weekly frequency from two to three on its route from Cairo to Amara .

Egyptair is connecting major European cities such as Frankfurt, Amsterdam, Rome, Brussels, Vienna and London via Cairo to Asmara.

Yemenia is going to operate two days a week to Asmara from Sana. Sudan Airways has posted flights operating on Saturday and Wednesday from Khartoum to Asmara on its official home page.

Traffic to Eritrea’s main Airport Asmara remains strong with passenger numbers reaching 117000 in 2008, which is an increase compared to 2007 (RATI).

Latest figures show that air traffic on the continent is growing faster than in many other regions.

“We are keeping a presence in all traffic regions and cancelling flight connections only when alternatives are available to our passengers. At the same time, we are opening up new markets in Africa, for example, so as to harness new growth opportunities” explains Lufthansa board member Karl Ulrich Garnadt in a interview last week.

At the same time Lufthansa is going to expand on its long-haul routes to Africa by cooperating with Brussels Airlines starting this winter season on a code share basis. African economic growth prospects, as well as the up coming 2010 Fifa World Cup in South Africa, have caused a revival of many routes to Africa, which ceased many years ago due to low demand.

For many years Brussels Airlines has been developing a strong route network to African destinations long before other European carriers have realized the growth potential of African aviation. Lufthansa owns a 45% stake in Brussels Airlines and hopes to get a greater foothold in the African market through the current partnership and a possible future takeover of the Belgian carrier by 2011.

EL AL 767

According to the Israeli newspaper HAARETZ the national airline of Israel (El Al) is blaming Eritrean air traffic controllers for an error last months, which nearly lead to a midair collision between an El Al plane and another aircraft over the Red Sea.

According to an Airline official a plane carrying 200 passengers was en route to the Far East when it received permission from air traffic controllers in the Eritrean capital, Asmara, to enter an international air lane.

However, the controllers neglected to tell the El Al plane how close it would be to another aircraft.

The pilots flying the Israeli plane, a Boeing 767, were alerted to the danger by the plane’s Total Access Communications System when they were only 700 feet from the other plane, and changed course to avoid a collision.

“The junction of the Red Sea flight corridor and the African air lanes is very problematic,” said Lior Yavor, El Al’s Senior Vice President of  Operations.

“El Al asked the Transportation Ministry to take care of the issue through official channels to reduce chances of a conflict.

The transportation minister has taken action and the incident is being handled by the chief air accident investigator, Yitzhak Raz.”

Flights from Israel to the Far East have to fly south over the Red Sea before turning east, because they cannot fly over most Arab countries.

The area near the Gulf of Eden is particularly dangerous because it is not  covered by radar, and plane locations are reported solely by radio. All El Al planes are equipped with TACS, which warns pilots when an unidentified aircraft is within 19 kilometers.

In 1998 the Israeli company was among the first in the world to furnish all of its planes with the technology, at a cost of NIS 5 million, three years  before it became mandatory.

 ATI reports that African carriers, represented by the African Airlines Association (AFRAA), have not escaped the downturn and are likely to suffer heavy losses in 2009.

AFRAA president and LAM Mozambique Airlines chairman Jose Viegas says first quarter profitability has been “quite poor”, after lower fuel costs and capacity adjustments failed to offset falling traffic and yields.

He adds that the world financial crisis will “most certainly hit African airlines during 2009″, causing record operating losses and significant budgetary constraint. “According to IATA research, Africa will be hit by losses of up to $300 million in operating results and $600 million in net profits,” says Viegas.

But the AFRAA president notes that “Africa hasn’t plummeted to the bottom line yet” and traffic volumes are expected to pick up from the third quarter of 2009.

Tourism is a key driver for the region and the 2010 World Cup is expected to boost passenger and cargo revenues in South Africa and neighbouring countries.

Viegas says: “Southern African airlines are facing an unprecedented crisis. In the last 12 months alone, some have filed for bankruptcy. The lack of cash flow has hit the region’s so called ‘big brothers’ too.”

He says the commercial aviation is “under pressure” and “shaky”, creating an urgent need for partnerships. He is backing stronger regional relationships, “energising” of some hubs, flight schedule co-ordination and other commercial co-operation as key ingredients in the recipe for recovery.