Your SlideShare is downloading. ×
Awakening Africa's sleeping giant: prospects for business aviation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Awakening Africa's sleeping giant: prospects for business aviation

423

Published on

2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE - June 13, 2013 …

2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE - June 13, 2013

Published in: Business, News & Politics
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
423
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 0© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 ‘JOIN THE DEBATE’ BUSINESS AVIATION PROSPECTS AWAKENING AFRICA’S SLEEPING GIANT… June 2013 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 1BHG, the ‘idea factory’ thinking ahead strategies www.1bluehorizon.com       
  • 2. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 1© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 The aim of today presentation is to enhance our knowledge about the African market to be able to assess potential opportunities in Africa F a c t ‘Aviation can be a vital catalyst for Africa’s Economic & Social Development’ D i l e m m a s O Some African Governments are reluctant to cede control to truly autonomous National Civil Aviation Authorities… O Can a developing country promote ‘Open Skies’ and still protect its own Airline Industry? Africa has made some headway in implementing Air Transport liberalization, but still has much to achieve… O Full implementation of the Cape Town Treaty that gives Aircraft Lessors and Lenders the ability to repossess their assets worldwide in the event of default with Aircraft Collateral Assurance, 60 Day Repossession and Governments Support… O Lack of fixed-base operator (FBO) to ease business aviation operations (crucial matter of attractiveness) and maintenance, repair and overhaul (MRO) facilities… EVENT: The African Business Aviation Association (AfBAA) Regional Symposium next September in Marrakech (Morocco) will debate the future of business aviation, discuss different business models, enhance the knowledge about the African market, and learn about the regional infrastructure development, and network with leading experts as well as business aircraft operators. (Thursday, 26 September, 2013 to Friday, 27 September, 2013)
  • 3. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 2© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Awakening Africa's sleeping giant is still to be considered as developing economies region (continent) with a few exceptions  Advanced Economies – Post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure.  Emerging Markets – Former developing economies that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s.  Developing Economies – Low-income countries characterized by limited industrialization and stagnant economies.
  • 4. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 3© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Awakening Africa's sleeping giant potential is tremendous with the travel within Africa increasing by 30% in the last ten years  Opportunities: – Economy forecast to grow to $2.6 trillion in 2020 from $1.6 trillion in 2008 – Growth in: mining, agriculture, development of ports, roads, and other infrastructure – From 2000 to 2010, foreign direct investment increased six fold to $58.56 billion – Large & Growing Population  Challenges: – Poverty – Mainly Small & Weak National Economies – Low Per Capita Income – Political Instability & Conflicts in Several Countries – Africa ranks low on World Bank’s Ease of Doing Business survey  Aviation sector baseline: – Little Disposable Income for Air Travel & Tourism, etc. – Africa is an underserved market where tickets sell at higher fares compared to other markets (Government-Regulated) – Traffic is increasing due to more entrepreneurs doing business abroad – Gradual improvements to Africa’s aviation infrastructure Source: © 1BlueHorizon Group Research & Analysis
  • 5. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 4© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Developing business within the awakening Africa's sleeping giant might be very challenging and required a long term investment commitment  Political instability  Looking to take immediate profit (upfront…)  Weak Intellectual Property protection  Bureaucracy and lack of transparency  Dual economy / contrasts  Accessing capital  Partner availability and qualifications  Finding the right physical resources (office space, utilities, etc.)  Understanding local consumers  Understanding and working with Family Conglomerates Source: © 1BlueHorizon Group Research & Analysis
  • 6. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 5© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Africa’s Aviation Industry: Challenges and Opportunities  The performance of the African aviation industry is still lagging behind those of the rest of the world. Nonetheless, demand for air transport has increased steadily over the past years with passenger numbers and freight traffic growing by 45% and 80%, respectively. Over the period 2010-2015, Africa will be the third fastest growing region in the world in terms of international traffic with an average growth rate of 6.1% compared to the global average of 5.8%.  This trend is expected to continue in the coming years due to a number of factors, notably robust economic growth, demographic boom, increasing urbanization, and emergence of the middle class. Air transportation plays a vital role in the country’s growth process by accelerating convergence of goods and persons. 5.8 7.9 6.9 6.1 5.8 5 4.9 0 2 4 6 8 10 Global Middle  East Asia  Pacific Africa Latin  America Europe North  America Aviation industry growth  (2010 ‐ 2015)  Growth in air transportation has directly maps into economic growth due to spillover effects through creation of direct and indirect jobs in the industry and other auxiliary sectors such as tourism and other service sectors.  Expansion in air transportation creates market opportunities for local entrepreneurs by creating regional and global economic centers. In 2010, the aviation industry in Africa supported about 7 million jobs (including 257,000 direct jobs) through the impact on travel and tourism which translated into USD67.8 billion of the continent’s GDP. Forecasts indicate that the aviation industry’s impact on African economies is set to grow. Over the next 20 years, implied job creation by the industry is projected at 1 million.  Africa can maintain the growth of its aviation industry if more and more people can afford to pay for the cost of air travel. Currently, only 10% of Africans travel by air but given the current rate of economic growth and emergence of the middle class, there be high demand for services linked to air transportation.
  • 7. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 6© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Challenges: The rapid expansion in Africa’s aviation industry is hampered by a number of factors  The main constraints the industry is facing are : - poor record of safety and security; - lack of adequate resources and infrastructure; - distance and limited connectivity; - lack of regulation and government actions.  These constraints add to competition and high operating costs resulting from surging oil prices. Addressing these challenges could significantly unlock the industry’s potential for future growth.  A recent report on 24 African States sponsored by the African Union, the African Development Bank, the Development Bank of Southern Africa, the Infrastructure Consortium for Africa, NEPAD and the World Bank ‘estimates that US$93 billion are needed annually over the next decade, more than twice what was previously thought’, to fund infrastructure and other development. A substantial amount of this would be required in the capital-intensive aviation industry, therefore it is critical that African countries invest in those infrastructures...  The industry is still not the top priority of African governments. More, some African governments are still reluctant to open their skies fearing foreign competition could undercut national airlines. Source: : The Wall Street Journal June 2nd 2013, 1BlueHorizon Group Research & Analysis
  • 8. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 7© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Opportunities: Nowhere is the potential for aviation greater than on the continent of Africa  Nowhere is the potential for aviation greater than on the continent of Africa – the home to a billion people spread across 20% of the world’s land mass.  Air travel is essential to the prosperity of Africa as it opens up opportunities that did not exist before. Fostering the African aviation industry may be one of the driving forces of regional integration on the continent.  Better connected African countries and regions through a viable air transport industry could be the catalyst that can boost intra-African business, trade, tourism as well as cultural exchange.  Developing the aviation industry may also represent an opportunity to mitigate chronic transport problems faced by the 16 landlocked African countries.  World class safety is possible in Africa and various organizations support their commitment to achieving it by 2015. It will also be a time to remind governments of the many challenges that stand between African aviation today and its potential to drive growth and development – from high costs and taxes, to inadequate infrastructure and unreliable fuel supply…  Without any doubt, Africa is a sleeping giant awakening too slowly… Source: 1BlueHorizon Group Analysis
  • 9. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 8© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 General aviation services provider are already active to awake Africa's sleeping giant – transforming marketing events to results might take time ExecuJet Promotes Futuristic Jet Travel to World Cup VIPs for VIPs and sporting personalities passing through its FBO in Cape Town, South Africa Vista Jet promoting their services to Government representatives during a road show in various African countries, here in Kinshasa (DRC) early 2013 (Illustrative)
  • 10. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 9© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Indisputably the role of business aviation in Africa's economy will grow in the coming years as GDP and other parameters improve Drivers of Business Aviation in Africa… Business aviation has been defined as that part of general aviation that focuses on the business use of aircraft. This excludes regular scheduled airlines and military operations. The raison d'être of business aviation is ‘the need for fast, flexible, safe, secure and cost-effective access to destinations across the country and around the world’. Perhaps, one of the major drivers of business aviation in Africa is, or ought to be flexibility. Business aviation in Africa has continued to grow even though figures may not readily available. However, the African air transport industry is poised for growth of averagely 5.5% in the years to come and many believe this growth should also be felt on the business aviation side of the industry in the same proportion, if not more. While there are many factors expected to drive the growth of business aviation in Africa, there exists a number of challenges the sub-sector must wriggle itself out of in order to bring its immense benefits to communities and organizations in Africa. … with administrative and regulatory bottlenecks to be considered Where political and economic situations do allow business aviation to thrive, administrative delays by Civil Aviation Authorities in Africa in processing of flight permits are a major threat to developing African business aviation market. A source at one of the leading fixed based operators in Africa notes that on average CAAs in Africa require 72 hours to process permits. Business aviation is based on speed and flexibility and a 3-day period to process a permit for a business trip does harm to business aviation.
  • 11. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 10© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Africa's need for business aviation is expected to increase correspondingly as long as Africa's resources keep attracting investments Implementing FBOs in those countries is highly advisable As example, the Chinese way… Source: Chinese investment offers in Africa (2010), 1BlueHorizon Group Research & Analysis
  • 12. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 11© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 SHOUKRAN - THANK YOU LEONARD FAVRE Partner, Group Managing Director 1BlueHorizon Group P.O. Box 34154 M +971 50 6164007 (U.A.E.) Abu Dhabi M +41 79 2080256 (Switzerland) United Arab Emirates leof007 leo@1bluehorizon.com www.1bluehorizon.com Abu Dhabi | Bern | Madrid | Montreal | Paris Any clarifications or questions regarding this document should be addressed to: OEM Pilatus launches a new jet that aims at Africa, presented as ‘the world's first super versatile jet’. The new PC-24 not only has the ability to use short runways but can also land on unpaved surfaces and will have a cargo door fitted as standard. ‘The PC-24 is the first business jet to have the ability to use very short runways, paved or unpaved, and a cargo door as standard’ said Pilatus chairman Oscar Schwenk. Even Africa's giant is still sleeping, the future is definitely bright for business aviation in Africa – B e r e a d y t o la n d in A f r ica…
  • 13. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 12© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 SOLUTIONS PACK 1BLUEHORIZON GROUP GENERATING THRUST TO PROPEL YOUR BUSINESS FURTHER... January 2013 We generate 1B l u e Horizon ® out of the Rough... www.1bluehorizon.com P R O P R I E TA R Y I N F O R M AT I O N        A b u D h a b i | B e r n | L o n d o n | M a d r i d | M o n t r e a l | P a r i s A s s e t M a n a g e m e n t | M a n a g e m e n t C o n s u l t i n g | I n t e r i m M a n a g e m e n t
  • 14. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 13© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Source: © 1BlueHorizon Group | Corporate profile 1BlueHorizon Group® value proposition is simple — Going the Extra Mile by generating trust to propel your business further O 1BlueHorizon Group® (Asset Management | Management Consulting | Interim Management) was established in 2007 as a network of International aviation professionals, providing objective, independent, evidence-based analysis, advice and implementation support. We build on the experience of our team to help clients realize real and measurable results, quickly. Start-ups, restructuring, cost cutting, project management office, due-diligence or exploiting growth opportunities, we have experts who have faced these challenges. O Our highly competent seasoned senior professional have experience from leading companies in both management roles within their disciplines and as senior level professional advisors throughout diverse and complex locations in the Middle East, Europe, Africa, Asia Pacific and North America. O Privately owned, 1BlueHorizon Group® is independent of any financial institution, manufacturer, operator, insurance company or maintenance provider assuring our clients the benefit of truly unbiased, comprehensive and flexible provision of service. O 1BlueHorizon Group® believes in working closely with client staff to transfer our knowledge and experience, which means 1BlueHorizon Group® continues to deliver value long after the project is complete. O A unique blend of languages, age groups, cultural backgrounds and skills qualifies 1BlueHorizon Group® to provide turnkey solutions for any and all of your aviation requirements - worldwide. O 1BlueHorizon Group® range of services is continuously tailored and adapted to suit the geographical scope and needs of our customers. P R O P R I E TA R Y I N F O R M AT I O N
  • 15. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 14© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Wataniya Airways - Chairman Mr. Abdulsalam Al Bahar with Mrs Ghaida Abdul Latif, vice chairman – director general & CEO of Syrian Arab Airlines. Flydubai - CEO Mr. Ghaith Al Ghaith Gulf Air - Ex CEO Samer Majali H.E. Mohamed Hamad bin Azzan Al Mazrouei, WRDC's Director General and Acting Under Secretary of the Court of the Ruler's Representative in the Western Region (al Gharbia) of Abu Dhabi Emirate Democratic Republic in Congo (Transport) AerospaceOne Company in India Jet Green in Pakistan Ababeel Air in Libya His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman & Chief Executive of Emirates Airline & Group Note: Detailed references upon request For the last ten years we have been actively involved with our Senior personnel in major airlines, start-ups or Economic development ventures P R O P R I E TA R Y I N F O R M AT I O N
  • 16. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 15© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Interim Manage- ment Managing Consulting Asset Management  The Management Consulting (MC) Practice is our ability to strike a rapport working side by side with you and quickly understanding what you need when the margin of error is thin… Providing a highly targeted surgical strike (to-the-point) to improve de performance and going the extra mile…  The Interim Management (IM) Practice help you by giving comfort and control with relevant seasoned advisors whenever and wherever they are needed… Whereas a management consultant provides an advisory role, Interim managers with performance improvement focus are directly responsible in delivering quick results, visible and measurable...  The Asset Management (AM) Practice works individually with each of our clients to develop creative strategies and solutions for all types of aviation equipment, with innovative financing models.… Source: © 1BlueHorizon Group | Practices Performance improvement Quick results / Hands-on Turnkey solutions Knowledge transfer Ahead of Strategies… The 1BlueHorizon® difference 1BlueHorizon Group® three dedicated Practices are built to propel clients business further with a comprehensive approach ahead of strategies P R O P R I E TA R Y I N F O R M AT I O N GENERATINGTHRUSTTO PROPEL YOUR BUSINESS FURTHER...
  • 17. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 16© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Family conglomerates (Governance, Portfolio analysis and investment Strategy) Economic development (Business review / Cluster / Project Management office) Air Transportation (Airline / Airport / General Aviation / Aerospace & Defense) Management Consulting Operational Improvement Our understanding of operational improvement is quite simple: Whereas restructuring is about stabilizing a company and fixing how it does things, operational improvement is about seeing a company through the transformation of becoming more competitive – going the Extra Mile. Asset Management Fleet Strategy & Planning With our Fleet Solutions, we can help you expand your fleet, transition from older models to newer aircraft types, or provide interim capacity. We back our support with a global team of technical experts and industry specialists who will provide you with the fleet solution and support that meets your specific needs. Interim Management Knowledge transfer Finding talent is difficult even at the best of time. Finding resources to assist for a short- term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization or to take on critical projects or senior positions for a limited time is even more difficult. Ahead of Strategies Three Practices Shareholders and management of companies with specialized needs often choose 1BHG for our unique custom turnkey solutions. If you want a business plan or a feasibility study to assess the case, or your are burning cash and running into trouble, or seek help to assess the case for entering immunized joint venture or looking for an interim management solution… 1BlueHorizon Group® highly competent seasoned professional will assist you to propel your business further… Going the extra mile ahead of strategies … 1BHG® Business model dedicated to particular Sectors is built around three Practices providing clients with turnkey solutions to maximize Value Creation Source: © 1BlueHorizon Group | Business model with Sectors (Horizontals) & Practices (Verticals) P R O P R I E TA R Y I N F O R M AT I O N … no matter how complex the issues are!
  • 18. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 17© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 Our three Sectors expertise covers the entire breadth of the Aviation and Defense sector, Economic development and Family conglomerates Airline Economic development Corporate governance structure  Portfolio analysis  Investment strategy  The family element  Performance Management  Organization Improvement  Privatization  Aerospace cluster  Logistic, Cargo, GH Airport Family conglomerate  Restructuring MRO, Aerospace & Defence  Performance Management  Organization and Change Management  Pricing and Revenue Management  Market Forecasting  Branding, Marketing and Sales General aviation Aerospace & Defence  Feasibility, Business Plan  Operations Improvement  Merger & Acquisitions  Due Diligence  Fleet Planning  Business review  Cluster strategy  Project Management office  Public–private partnership (PPP) Source: © 1BlueHorizon Group | Core competencies in the main three Sectors P R O P R I E TA R Y I N F O R M AT I O N … and our clients well recognize this!
  • 19. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 18© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13 “1BlueHorizon Group is the only consulting firm that works successfully on all levels: Board level, middle management, implementation" “1BHG senior personnel come in with strong views but integrate perfectly in our teams" “1BHG has convinced us through it's excellent industry- and technology expertise" "The 1BHG team knows perfectly well how to push the necessary change" “1BHG guys are implementation - oriented and their cooperation with my people is very good " “1BHG Practice has very qualified people who really know a lot about our industry" Testimonials - What do our Customers think about 1BlueHorizon Group® "In each project step, we could clearly identify 1BHG's added value and improve the overall bottom line" P R O P R I E TA R Y I N F O R M AT I O N THE ONLY WAY TO DO GREAT WORK IS TO LOVE WHAT WE DO… A MILE OF RUNWAY WILL TAKE YOU ANYWHERE NO ONE HAS EVER COLLIDED WITH THE SKY Note: A list of qualifications is made available separately
  • 20. 2nd Middle East Corporate Aviation Summit (MECAS 2013) – Sofitel Dubai Jumeirah Beach, UAE 19© 2013 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | Aeropodium Conference MECAS 13.06.13

×