The eurozone crisis poses a serious threat to African airlines as the number of passengers has decreased, according to a report by the Namibian news agency.
Tobias Günzel, deputy director for Aviation, Administration and Navigation for the Namibian Civil Aviation Directorate in the Ministry of Works and Transport, said the economic crisis in Europe affects air transport and passengers are holding back their money. Günzel said the increasing fuel price poses a challenge for Africa, adding that 40%of airlines’ capital goes to fuel purchases.The business manager of Landover Company in Nigeria, Monday Ukoha, echoed the same sentiments, saying the smallest airline in Africa needs to benefit from the economic scale.
Ukoha also said that the industry also faces infrastructure challenges, even though there are a few improvements, adding that there is a need to tackle the issue of infrastructure in areas of public-private partnership. Air Namibia’s general manager for Commercial Services, Xanier Masule, said that since the economic recession of 2008, the airline has been facing many challenges. He added that a huge 55%of its revenue is derived from the European market.