What are the benefits of establishing a LCC in Africa?

As previously mentioned, “the airline industry is the flywheel for the engine of the world’s industry”. This means that the airline industry is regarded as a distinctive and attractive sector. Research indicated that the airline industry is directly, indirectly, and induced, worth more than US$1,000 billion and employs approximately more than 22 million people, transporting and servicing over 1.25 billion passengers every year. The aviation industry is equally at the core of travel and tourism, which is considered to be the world’s largest industry.
So what would the benefits be for Africa?

 

Africa is a vast and diverse continent with a population of over 1 billion, with more than 50 countries and accounts for less than 2% of global airline passenger traffic. Research undertaken by Boeing predicted that African air traffic will grow at 5.7% annually, which is considerably faster than the world average of 4.9%.

Up until now, it is fair to assert that an ''average'' person in the street does not think about travelling by air as it is still perceived as a luxury that is solely accessible to certain members of society. To put this in perspective, the flying tendency in Europe is 2 seats per head, while it is only 0.02 in Africa. This therefore supports the fact that air travel is significantly expensive.

Introducing a LCC in Africa will be beneficial for the continent given as it will be a significant player contributing not only to the economy of the continent, but equally induce social, political and technological developments. 

“Aviation is a machine that will develop the region” - (Van Rex Gallard - Boeing’s vice president of sales in Africa)

Do you have any other suggestions on the benefits of establishing a LCC in Africa?