Organization Partner

The increase in terrorist attacks, poor Airline security, rising fuel costs, declining sales and a plummeting global economy has led to low profit margins for most Airline companies. In fact flying is no longer a privilege, and can really be a hassle and a burden due to wait times. Most Airlines and Aircraft manufacturers facing low profit margins are being forced to seek growth opportunities, by capitalizing on investment opportunities in global markets. This has led to the emergence of certain demand sectors gaining immense focus, such as the African Airline Industry. The African continent long-time abandoned for fear of risky investment, greatly due to factors such as corruption has emerged as a highly sought after market. Most African airline companies, are in huge demand for help with Airline Re-structuring and re-organization. Many African Airlines and airports, for years have been crippled with issues such as; blatant mismanagement, corruption, in-efficient staff, poor aircrafts, poor maintenance of facilities and aircrafts, poor security and limited infrastructure. These issues have led to a great need and demand for re-structuring and re-organization within the African Airline industry.

Despite the drop in Airline profit margins and revenue, it should be noted that notable Airlines which maintain frequent routes to African airport hubs, have continuously increased air-fares. Despite these air-fare hikes, there has still been an increase in the growth margin of passengers travelling to the African continent. The passenger growth increase margin highlights the huge client base within the African Airline industry, for which demands and services can be ameliorated. The IATA’s passenger growth index indicates that Africa’s internal passenger growth has increased greatly to becoming a business travel hub that should see major international airlines shift their focus there for future growth.

Cameroon, a former French and British colony located between in West and Central Africa bordering Gabon, Equatorial Guinea, Nigeria and Chad, is an example of one of the developing African nations whose Airline industry in going through a major re-structuring and re-organizational phase. Cameroon best known for its modest oil resources and great agricultural resources has one of the best endowed primary commodities economies in sub-Saharan Africa. Cameroon since its independence has enjoyed stability thus far, leading to development of roads, infrastructure, sustainable development projects and re-merging industries such as its Airline and petroleum industries. Cameroon’s main airline company Camair-Co has chosen Lufthansa Consulting as its major partner to help, Camair-Co in its re-structuring and re-organizational efforts. This is a major positive effort which if maintained, would allow Cameroon’s ailing Airline industry plagued by corruption, mismanagement and in-efficiency to not only start over but set a viable structure for business success. Lufthansa through its expertise not only allows Camair-Co to set a solid business structure, a solid foundation, recruitment of better staff and management and provide training ad logistics. A guided recovery process allows the Airline to also implement guided performance measurable tasks and services for review.

The investment opportunity has become evident and Airlines are competing to seek ways to gain a competitive advantage in the African airline industry. Thus an increased and competitive bidding wars by competing airline companies to win contracts in the African Airline industry. Lufthansa Consulting has stood out from its rivals due it host of services it provides in the aviation industry. Lufthansa re-organization and re-structuring consulting unit provides an extensive array of services and experience through, Airline operations, development, infrastructure and logistics, sustainable aviation, Asset management for used for used or new aircrafts. This services and experience are much needed and in demand by ailing African airline companies and thus provide a competitive edge for Lufthansa. Other Airlines and aircraft manufacturers, who are seeking to invest in the African Airline industry, would have to follow suit in Lufthansa footsteps. Companies such as Boeing which is primarily a major Aircraft manufacturer provide limited number of services and thus cannot compete extensively with companies such as Lufthansa.

Airline transportation has a very important role to play in the economic and physical integration of the goods and services in global transportation. A reliable African airline industry is necessary and key to global and regional integration and development in Africa. Most African nations do not have the available resources to fund much needed infrastructural development projects due to a plague of issues. Nevertheless the burgeoning increase and demand for re-structuring and re-organization within the African Airline industry marks an important step on the road to financial recovery.