The business model of discount/no frills/budget airlines or Low Cost Carriers (LCCs) is based on low fares with limited services to keep costs to a minimum.  LCCs employ several cost cutting measures to ensure that their operating costs are less than those of traditional or Full Service Carriers (FSCs). The most common are; online ticket sales and check in, charges for checked in baggage and on-board refreshments, utilizing cheaper uncongested secondary airports, etc.

LCCs are popular on short haul and regional point to point routes associated with single aisle/narrow body aircraft[1].

Research by Sherine Farouk, Jacob Cherian and Ingy Shaaban[2] shows that a FSC operating an Airbus A320 between London and Rome spends USD 12,000 more on each round trip than a low cost carrier does.

Lower operational costs and ultimately cheaper tickets, has enabled LCCs demystify air travel, enabling more passengers to fly for business and leisure (holiday and adventure).

The tables below show LCCs by region as at 15^th April 2015 (Wikipedia).

Note: North America, South America, Europe and Asia have more than seven LCCs. Only the seven largest (by fleet size) were considered for purposes of this article. Australia and the Middle East have less than seven. All LCCs in Africa are listed.

NORTH AMERICA

EUROPE

CENTRAL AND SOUTH AMERICA

ASIA

MIDDLE EAST

AUSTRALIA

AFRICA

Africa comes last. The low figures and late commencement of operations indicate that in spite of friendly ticket prices associated with low operational costs, LCCs are not as popular as FSCs.

Data published by the African Airlines Association (AFRAA) for the period April to June 2014 indicates that African carriers conducted 224,270 intra Africa flights (24,841,776 seats).

AFRAA data also indicates the top five city pairs for international destinations within Africa as reproduced here below;

This data does not indicate how many passengers were ferried by LCCs. However, from my own knowledge of traffic on some routes, for example between Entebbe and Nairobi (fifty-five minutes flight time), the dominant carrier between April and June 2014 (702 frequencies) was Kenya Airways (KQ), for the following reasons:

1.  KQ flew four times daily, operating B737 and Embraer aircraft.
2. Air Uganda operated for only ten out of 12 weeks during that period, operating 50 seater CRJ 200 aircraft thrice daily.
3. Jambo jet and Fly Sax were not operating on this route during that period.

On the Gaborone- Johannesburg route, (30 minutes flight time) 1036 frequencies between April and June 2014, the dominant carriers were Air Botswana and South African Airways. Information from www.flightradar.24 indicates nine daily departures from Gaborone, seven of which are to Johannesburg (Four flights by Air Botswana and three by South African Airlines).

On the Lagos – Accra route, (45 minutes flight time) 849 frequencies during the period under consideration, is served by Aero Contractors, Africa World, Arik Air and Med-View Airline. Information from www.flightradar.24 indicates five daily flights from Lagos to Accra.

On the Tripoli-Tunis route, (50 minute flight time) and 695 frequencies during the period under consideration, the dominant carriers were Tunisair, Afriqiyah Airways, Buraq Air and Libyan Airlines.

These routes, ideal for LCC operations are dominated by FSCs. Even regional airlines that fly point to point prefer the FSC model.

Several writers on this subject have highlighted four limitations that impede growth of LCCs in Africa.

1. Lack of alternative and cheaper uncongested secondary airports meaning high fuel burn during delays and not quick enough turnaround times to effectively utilize aircraft.
2. Small flying population hence lack of passenger volumes to sustain a low cost model.
3. High Costs charged by Governments (taxes, landing, navigation, handling and other regulatory fees) raises ticket prices.
4. Lack of open skies.

I agree with the above limitations. However, can LCCs thrive in Africa if the above limitations are solved? NO, and I can explain why;

Alternative cheaper and uncongested airports have to be supported by road and rail networks (secondary infrastructure) to make access for travelers convenient. Considering Africa’s poor transport infrastructure, constructing an inaccessible airport is a waste of time and resources. Further, LCCs can only fly where passengers actually want to travel, which is mostly to primary airports close to urban areas/ centers in major cities. In East Africa for example, most domestic flights to secondary airports like Eldoret, Kisumu, Mombasa, Kilimanjaro and Mwanza originate from, and return to primary congested airports – Nairobi (JKIA) and Daresalaam (JNIA). This guarantees high operational costs and explains why LCCs in Africa are few in number and have only recently commenced operations, yet secondary airports in the region have been in existence for decades.

LCCs in Europe and United States sell tickets on-line and accept payments by credit/debit card to eliminate costs associated with agents and handling/storing/transporting cash. Unfortunately, majority of Africans do not operate bank accounts and the few that have, view card (plastic money) transactions with suspicion due to fraud[3].  Further still the African continent as a whole suffers from low internet connectivity. Compared to other regions, sub-saharan Africa has the lowest internet usage[4] which makes on-line sales unpopular.  Ticket purchases are made by cash transactions with travel agents or airline sales offices. This modus operandi raises operational costs making it unattractive for LCCs.

High ticket prices are not a problem especially where many travelers are public servants travelling on Government duty, and the cost is borne by taxpayers. Protocol dictates that high ranking government officials and statutory/private corporation employees on official duty travel business class, commensurate with their status. LCC single class economy configuration without reserved seating is viewed with contempt. Such officials find it demeaning to travel and rub shoulders with “low ranking” individuals.

Read: Kenya, Burundi fight over Jambojet aircraft deployment

Some African Governments have directives instructing public servants to use particular airlines. The Government of Kenya has a cabinet directive in place instructing all Kenyan Public Servants to fly on Kenya Airways[5].

Such directives lead to unfair competition and protect FSCs, enabling them take up a large share of the market by operating on routes and to destinations otherwise suited for LCCs.

High levels of income disparity and lack of a sizeable middle class, like in Europe and the United States, makes African societies divided between the haves and have-nots. The haves, though few in number, have the resources and means to travel, regardless of cost. The have-nots, who are the majority, cannot afford travel even on LCCs. Complacency on part of the haves keeps FSCs operational because they have money to pay for highly priced tickets.

The popularity and growth of LCCs in the 1960s is attributed to tourists and adventurous leisure travelers who sought destinations not served by FSCs and were willing to fly there with minimal comfort. Over the years, LCCs in Europe and North America have flown tourists to such destinations, sometimes on seasonal basis.

Although the middle class in Africa is steadily growing, the culture of holiday or leisure/adventure is alien to most Africans. Travel by air is limited to “essential matters” like work, business, education and medical treatment. The frequently flown routes indicated are between major cities, not to game parks or holiday resorts.

Shall LCCs ever compete with FSCs in Africa? Possibly, one hundred years down the road.

[1] A320, B737, Embraer, CRJ, ATR and MD80

[2]https://repository.cardiffmet.ac.uk/bitstream/handle/10369/9581/Low%20cost%20carriers%20versus%20traditional%20carriers_.pdf?sequence=5&isAllowed=y

[3] https://www.practicalecommerce.com/africa-emerging-ecommerce-market-many-challenges

[4] https://www.pewglobal.org/2018/10/09/internet-use-is-growing-across-much-of-sub-saharan-africa-but-most-are-still-offline

[5] https://www.businessdailyafrica.com/corporate/Government-directs-public-servants-to-travel-using-KQ/539550-2047338-ws98rqz/index.html