Why Africa needs a joint-African airline with continental shareholders

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OPINION

By David Sempala

In the bustling terminals of Entebbe International Airport, frustration has become as common as departure announcements. Uganda Airlines, the nation's revived flag carrier, has been plagued by a series of setbacks that epitomise the broader struggles of African aviation. Just this month, passengers bound for Dubai and other destinations found themselves stranded for days due to technical faults, with planes grounded in Lagos and London. Reports of poor communication, lack of accommodations, and even police intervention in Dubai to secure meals for affected travellers have sparked public outrage. 

The airline, already haemorrhaging losses, nearly 300 billion Ugandan shillings (about $80 million) in 2024 alone, faces accusations of mismanagement, including an unqualified CEO earning a salary ten times that of her counterpart at profitable Ethiopian Airlines. These incidents aren't isolated; they reflect a continent-wide crisis where national carriers buckle under operational constraints, rising costs, and fierce competition from well-capitalised global players.

Africa's aviation sector, despite leading global growth in passenger numbers post-pandemic, remains hamstrung by structural barriers. The International Air Transport Association (IATA) projects African airlines will eke out a meagre $0.2 billion in profits for 2025, translating to a slim 1.1% net margin, far below the global average. Challenges abound: fragmented markets and policies hinder seamless operations, while high fuel costs, excessive taxes, and blocked funds (where governments restrict repatriation of airline revenues) erode viability. Safety concerns persist, with Africa's accident rate at 1.1 per million flights in 2025, underscoring inadequate infrastructure and regulatory gaps. 

Geopolitical tensions, from conflicts rerouting flights to security risks in volatile regions, compound these issues. Meanwhile, intra-African connectivity lags: only 20% of air travel on the continent stays within Africa, forcing passengers to endure costly detours via Europe or the Middle East.

Uganda Airlines' woes mirror those of peers like Kenya Airways, which has grappled with debt and required bailouts despite partnerships with KLM. As the attached post notes, these carriers face operational constraints, fleet underutilization, and the harsh realities of competing against entrenched regional giants. Yet, the post also highlights a path forward: strategic private partnerships and governance reforms. But why stop at national fixes? Africa's aviation needs a bolder vision, a joint Pan-African airline where countries hold shares, pooling resources for collective strength.

Imagine a carrier modelled on the African Union's aspirations, with equity distributed among member states based on population, GDP, or aviation needs. This "Air Africa" could leverage economies of scale to negotiate better fuel deals, aircraft leases, and maintenance contracts, slashing costs that currently cripple smaller operators. Shared fleets would optimise utilisation, addressing issues like Uganda's limited wide-body aircraft that led to recent disruptions. By focusing on unserved routes, it could boost intra-continental travel, plugging gaps in the network and fostering trade under the African Continental Free Trade Area (AfCFTA). 

Tourism would flourish with affordable, direct flights between Lagos and Johannesburg, or Nairobi and Dakar, unlocking economic growth estimated at billions in added GDP. The benefits extend beyond economics. A Pan-African airline would embody unity, much like the defunct Air Afrique, which connected West African nations in the 1960s-2000s before succumbing to mismanagement.

Lessons from that era, ensuring transparent governance and avoiding political interference, could guide success. Shareholder countries would enforce accountability through a multinational board, blending public oversight with private expertise. Sustainability gains traction too: collective bargaining for sustainable aviation fuel (SAF) could overcome current barriers like high costs and regulatory voids, positioning Africa as a green aviation leader.

Critics might argue that fragmentation makes such a venture improbable, citing past alliances' failures. Yet, recent moves—like Kenya Airways' partnerships reshaping alliances—show momentum. With the Single African Air Transport Market (SAATM) aiming for liberalisation, a joint airline could accelerate implementation, reducing protectionism that shields inefficient carriers.

National pride, as Uganda wants to be, can't sustain an airline alone. But smart, continent-wide partnerships can. By uniting as shareholders, African nations could transform aviation from a perennial loss-maker into an engine of integration and prosperity. For Uganda Airlines and its counterparts, this could be the lifeline: not revival in isolation, but rebirth through solidarity. The skies await Africa's collective ascent.

The writer is a seasoned Communication Consultant & Chief Executive Officer-Royalway Media Ltd