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African airlines must consolidate

posted Sep 20, 2012, 1:24 AM by Michael Adams
African airlines may need to consolidate to compete more effectively in the global aviation industry, Boeing EVP Jim Albaugh said Tuesday.
 
Speaking at the Wilson Center forum in Washington DC, Albaugh said, “In Africa alone there are well over 100 airlines. It’s pretty hard to be efficient when you have that many airlines.”
 
The multitude of carriers cannot get the economies of scale because their fleets aren’t big enough, but with consolidation the airlines would “find that they are more efficient,” and can compete better on an international scale, he said.
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