LCC AIRLINES MODEL
The emergence of the low cost carrier (LCC) model has proven highly profitable and successful throughout the world over the past two decades. The model continues to gain momentum globally, leaving Africa as the only remaining continent that does not offer a true low-cost carrier option.
West Africain airline duopoly environment has created a lack of competition, resulting incentive for the existing carriers to offer little competitive ticket prices to consumers.
The business model has been developed as part of the Tony Elumelu Entrepreneurship Programme (TEEP) and presented at Rothschild’s Bank (London). Strategies and plans have been reviewed by experts in African, Middle East and European Aviation.
We are at the launch of the West African Air Passenger Market. The region is ready for the West AF product. Innovative and proven techniques for managing performance and teams in the West AF ‘Everything is Connected’ concept will support efficiency and flexibility, keys to managing change in the low cost business model.
African passenger air transport has predicted growth for the next 20 years at a rate of 5.7% per year (Air Transport Action Group – ATAG Report). Even with recent studies highlighting slowing growth in Africa, ‘African economy facing headwinds’, the Aviation Sector will grow as it has been lagging far behind and is part of the infrastructure needed to boost economic growth.
The African continent only accounts for 2.85 percent of the world total in passengers transported in spite of being the second largest and second most populous continent.