Thursday, April 18, 2013

■ BRAZIL: Embraer looks to double its presence in Africa over next 20 years though this depends on the Yamassoukoro Decision being implemented.

EmbraerBrazilian aircraft manufacturer, Embraer, is looking to double the number of its aircraft flying in Africa over the next 20 years, though this will largely depend on the  full implementation of  the Yamoussoukro Decision of 1999, whose objectives include the full-liberalization of the intra-African air transport market, free exercise of  first, second, third, fourth and fifth freedom rights for passenger and freight air services  by eligible airlines and ensuring fair competition on a  non-discriminatory basis while complying with international safety standards. Despite having been given a deadline of 2002 for implementation, the Decision still remains fanciful at best.

According to Embraer, air transport in Africa will grow above world average in the next 20 years, led mainly by the intra-regional environment. The main tool to support this growth will be the 30 to 120-seat segment, as its range capacity meets intra-African market requirements.

Embraer's seat capacity projections (Embraer)
Vice-president for Commercial Aviation in the Middle East and Africa, Mathieu Duquesnoy, believes should Yamassoukoro be fully implemented, along with the ensuing liberalization, 60% of Embraer's sales on the continent in the next 20 years would come from sector growth, with the rest to replace ageing aircraft.
"The total fleet in Africa is currently about 670 planes. This is set to increase to 1,400 aircraft in the next 20 years, of which we want 210 to be Embraers," he said. "If deregulation does not happen, the African skies will continue to be dominated by old, oversized aircraft and airlines will not be able to address the demand for better linking of the continent's large airports."
Source [TheAfricaReport]

Given Brazil's somewhat close relationship with Africa, Lusophone Africa in particular, numerous financial ventures have been organized in which Embraer aircraft would be sold or leased to African airlines at subsidized rates - Nigeria in particular where a government is looking at buying 30 new aircraft for use by its domestic aviation scene, with the Brazilians said to have "provisionally agreed" to participating, though no de-facto decision has yet been made.

On a more Pan-African scale, a contract entitled the "Aldus Aircraft Africa (AAA) Leasing Project" was signed in late 2012 in which the African Development Bank (AfDB), through Aldus Aviation Limited, an Irish-based international leasing company focused on the ownership and leasing of Embraer's E-Jet (70-120 seat) family of aircraft, would tentatively procure Embraer E170/190 jets for onward placement in "six or seven African airlines" through an Africa-based leasing facility.