| Description |
This paper assesses the economic opportunity for low-cost carriers (LCC) to successfully enter the sub-Saharan African (SSA) air transit market. To accomplish this, I address the future growth in passenger demand, the current state of African air travel infrastructure, and governmental barriers to supply-side growth. The region accounts for roughly two percent of global passenger volume yet is projected to far outpace global air travel growth in the coming decades. Regional liberalization, government taxes, physical infrastructure, safety concerns, and insufficient specialized labor will prove to be the most significant barriers to success. Until the frequency and connectivity of routes in SSA are improved, full-service carriers (FSCs) will remain unprofitable. Furthermore, key tenets of the LCC business model will remain unachievable and LCC entrants will not operate at the scale necessary to succeed. Due to the industry's adolescence, further research is required to better understand future of SSA air travel on a carrier, airport, and even country-level. |
