African Airlines Rising in Airline Strategy Awards

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Last Sunday I was privileged to announce and present the SITA-sponsored Award for Executive Leadership at the “Airline Strategy Awards” held, as always, at Lincoln’s Inn in London.  The very well deserved award went to James Hogan, the CEO of Etihad Airways, from Abu Dhabi.

I was very struck by the fact that two of these prestigious awards went to African airlines – the first time that any airline from Africa had won one of these awards.

The CEO of Ethiopian Airways, Tewolde GebreMariam, won the Regional Leadership  Award. He won because Ethiopian Airways has delivered consistent profits whilst expanding its network and fleet.

The CEO of Kenyan Airways, Titus Naikuni, won the Airline Business Award, awarded by the magazine’s Editor.  In the 10 years that Mr Naikuni has been CEO, Kenyan Airways has trebled its revenues and doubled its fleet.

This is a very interesting development and shows how quickly the world and the airline business is changing.  Parts of the African Continent are now experiencing fast growth.  The World Bank reports that the economy of Sub-Saharan African countries grew at rates that match or surpass global rates.  The rate of return on investment in Africa is currently the highest in the developing world.  During 2011, Sub-Saharan economic growth rate was 4.9%.  Excluding South Africa, which accounts for over a third of the region’s GDP, growth in the rest of region was 5.9%.

Trade has driven much of the growth in Africa’s economy. China and India are increasingly important trade partners with 12.5% of Africa’s exports being to China and 4% to India.

It is therefore not surprising to see African airlines rising, and it was good to see this recognised at the Airline Strategy Awards.

About paulcoby
I am CIO at the John Lewis Partnership in the UK. I was Chair of SITA - the airline solutions company owned by the Air Transport Community - for 11 years. I am also on the Boards of Clydesdale and Yorkshire Bank and Pets at Home. Previously I was Head of BA Services and for 10 years CIO at British Airways. I am interested in Roman and Military History. The views expressed are entirely my own not my employers.

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