Africa needs greater coordination and a planned, step-by-step approach to issues if business aviation–and, by extension, the larger economy–is to succeed on the continent. That was the message from business aviation leaders at the second African Business Aviation Association (AfBAA) regional symposium, held recently in Johannesburg, South Africa. Among the issues that the industry needs to address are greater access to airspace, aircraft financing, capacity development and safety, according to keynote speaker Poppy Khoza, director general of the South African CAA

The industry needs to focus on flight tracking, the implications of flying over war zones and the macro-political environment and how this affects aviation, according to Khoza, citing the downed Malaysia Airlines flights as examples of the unpredictability of security and safety issues. She added that robust communication systems are also required to manage issues such as the outbreak of contagious disease (Ebola, for example). These diseases have an impact on aviation too.

Tarek Ragheb, chairman of AfBAA (which was launched in May 2012 and as of September had 77 members), outlined four pillars of success for business aviation in Africa: aircraft finance, safety and training, advocacy and data analysis. These pillars form a framework for AfBAA’s activities over the next year, he told delegates. He encouraged stakeholders to support AfBAA in its advocacy work with government and regulatory bodies.

On the finance front, Ragheb said that AfBAA has successfully mentored a $290 million fund for Africa-based citizens to purchase Brazilian products. “Aircraft formed the central focus of this fund,” he said, “and we anticipate this will support new aircraft purchases in the region.”

U.S. Ex-Im Bank senior v-p for business and product development Robert Morin told the conference that his bank has provided $7 billion to help the development of African aviation (citing Ethiopian Airlines) but he suggested that U.S. manufacturers need to work with Ex-Im Bank to maximize its use as a sales tool. He added that partners are needed in Africa to make things happen, and he acknowledged Investec and Air Finance as the bank’s newly appointed “qualified advisor” partner for Africa. He concluded by saying that Ex-Im Bank has also started to finance services and infrastructure such as MROs/FBOs (as long as there is a U.S. link).

Financing has become a bigger issue for African operators than it has been in the past as the market is becoming more discriminating. Once viewed as the dumping ground for the world’s older aircraft, the African market is becoming more sophisticated and customers will ask about age, engine cycles, logbooks and insurance and maintenance history. Demand for new equipment is growing, although African buyers tend to want their aircraft now, rather than wait for a position in a line for a white tail.

With respect to data and analysis, Ragheb said that U.S. publication JetNet iQ has collated, in association with AfBAA, statistics (currently available only to AfBAA members) relating to the current status of African business aviation. This includes business aviation fleet, purchasing intentions, aircraft usage and aircraft ages, and challenges to growth.

Rolland Vincent, whose company Rolland Vincent Associates partners with JetNet to produce JetNet iQ, launched a survey at the conference, aimed at bolstering the information available and drawn from leading stakeholders and AfBAA members. He said that he would report back on the research at the AfBAA Rendezvous (a members-only event) in Angola next February.

Long Flight to Freedom

In further discussion on development, delegates discussed an approach to liberalization and open skies on a step-by-step, region-by-region basis, focusing on forging partnerships between allied countries first rather than “trying to join the whole continent at once.” Delegates suggested that steps have already been taken in this direction at a high level.

Further progress requires AfBAA to advocate for improving ease of access to over-flight clearances between countries; creating systems that enable more efficient access to landing permits; consistency of document acceptance, including insurance and airworthiness papers at all African airports; and more understanding from and education of local CAAs.

Another issue that was discussed was the need for common standards and regulations–perhaps requiring a single, continent-wide regulator along the lines of the EASA.

A later panel discussed South Africa, the continent’s biggest aviation market. Although there has been a relatively high rate of growth in the business jet fleet, the Rand currency is quite weak, reducing its purchasing power. There were calls for the South African government to treat business aviation as an economic enabler. Recent trends have seen an influx of international businesses setting up in South Africa to use it as springboard into the rest of Africa.

In summing up the two-day event, Ragheb said, “We are here to share the success, frustrations and knowledge of our colleagues and to use these as a means of shaping AfBAA’s future. With our growing membership we should use this as a force multiplier to reach regulators, civil aviation authorities and leaders in business aviation. We have a framework for the future and this is enriched by the practical experience of our members. We must use this to maximize the significant potential the continent of Africa holds for business aviation.”

Operators Enhance Support

In the year since last year’s symposium, OEMs have strengthened their presence on the continent, welcome news for all those involved in business aviation. Nuno Pereira of Bestfly (an Angolan FBO/MRO company) thanked OEMs for helping with support since the last AfBAA regional symposium in 2013. In particular he said that the major OEMs have taken steps to improve the availability of spares and access to maintenance knowledge. He thanked Bombardier, Beechcraft and Embraer in particular for making great strides in expanding their offerings on the continent.

Bombardier has opened a regional office, as well as a support office for the 80 aircraft it has in Africa. Most of its aircraft are based in Southern Africa. Embraer has entered an MOU with ExecuJet in Lagos and is setting up an office in Johannesburg. Beechcraft continues to support the market across the board.

All OEMs have responded to the call for spares on the continent, and operators seem to be more satisfied with access.

“The improved [MRO] offering, wider implementation of [SMS] and an increased number of experienced aircraft management companies has served to support greater sales across the continent,” said AfBAA.

FBO Infrastructure Needed

Industry players and governments alike need a clearer understanding of the function of an FBO within the framework of business aviation, according to symposium attendees. There are probably only four full FBOs in the whole of Africa if an FBO is defined as a facility that offers full ground handling, fuel, catering access, trip planning services, notams and so on. That number shrinks to as low as two if customs and immigration facilities are considered essential services.

Fuel continues to be a major issue. A dedicated fuel truck moves an FBO to a whole new level, but finding the equipment in Africa is difficult. Most fuel is government owned, so business aviation is not a priority. A widebody airliner is always going to be first in the queue at an airport while the business jet will sit waiting idly at the back of the line.

In Ethiopia, for example, the national carrier is government owned, and consequently business aviation struggles to be heard. In this instance a potential FBO developer might need to apply not to the government but to the national carrier (Ethiopian Airlines) as it has the monopoly in the country.

The experts agreed that keeping FBOs in the private sector is the best way forward and that investment is key. However, some government involvement is unavoidable since customs and immigration is also a factor in success.