Will African Airlines survive 2010?

Kulula.com has combined innovation with humour to create a winning brand in the South African Low Cost market

What does the year 2010 hold for African aviation?According to IATA,not very bright.IATA estimates that African airlines will lose $100 million this year.

Last year Kenya Airways lost close to $130 million due to expensive fuel hedging contracts !This was the first loss for the African Airlines in 13 years and caused a great deal of uproar in the Kenyan business community.

Kenya Airways and Ethiopian Airlines are likely to continue with their fierce expansion into African markets.Already Ethiopian Airlines has acquired 25% of ASKY airlines and launched Lome as its new West African hub.Kenya Airways looks set to extend its wings into the lucrative West African market too!

South African Airways is still struggling across the continent losing the market to fierce competition from Kenya Airways and Ethiopian Airlines.Gulf giants Emirates,Etihad and Qatar Airways are already smelling the opportunities that are slowly being created in Africa!

Emirates,already the official airline of the FIFA 2010,looks set to establish a firm foothold in the African market this year.Emirates flies to major hubs in Africa and has also establish countless interline connections with small African carriers.

The silver lining in African skies might as well be the growth of the low cost market.A few innnovative low cost carriers are emerging across Africa.African low cost market is still unmined market even though South African market is slowly maturing with the emergence of innovative and colorful carriers like Kulula and SAA small fruity airline,Mango Airlines!In Kenya Fly540 and JetLink are not doing that bad but South Africa leads in the low cost/budget airlines market!