African airlines are expected to be put under immense pressure by a strong dollar throughout the course of 2017, and state-owned airlines particularly will need to carefully evaluate their route network. Vice-chairman of aviation consultancy Seabury, Michael Cox, said on Tuesday that in the 10-year period between the consultancy working on turnaround strategies for South African Airways (SAA), the underlying economic conditions underpinning planning had become far more challenging [and that] state-owned airlines occasionally fail to fully analyse the economic implications after being given political directives. Despite rapid growth expected in Africa, airlines are expected to struggle to remain profitable, the 26th annual African Aviation Summit heard on Wednesday. Passenger demand in Africa is expected to grow at a compound 4% to 5% for the next 20 years, but airlines are expected to be put under pressure by both Middle Eastern carriers and emerging low-cost carriers. Seabury is cu...
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