RwandAir to break even by 2018, eyes more routes in Africa.
The RwandAir chairman Girma Wake, who is in Ethiopia, with President Kagame, announced today that RwandAir revenues are growing by 20 percent annually. The airline plans to break even, by 2018.
"It has not achieved profitability yet, but soon it will. I am sure in two or three years, it will be able to break-even," the former chief executive of Ethiopian Airlines said, without giving more detailed figures.
Moreover, RwandAir will add more routes in Africa, in next few years. According to Girma Wake, the demand in Africa is growing, but there is a lack of connectivity. It's mainly due to a bad management, a lack of infrastructures and a protectionism, from Africans States, despite Yamoussoukro Decision of 1999.
"Africa has a problem. The interconnectivity of Africa is still weak and airlines like Rwandair can fill that gap," Girma said.
"The big carriers are looking for non-stop flights so the inter-Africa link is getting weaker and weaker," he said.
Thanks a good management RwandAir improved its reputation. RwandAir is became an IOSA airline. The airline has switched from a second hand leasing fleet to a brand new aircraft fleet. In 2015, the airline ordered two A330s and one Q400 NG.
With the improvement of the Kigali Airport and the strong support of the Governement, RwandAir has seen its traffic rose, and opened new destinations like in South Sudan, Zambia, Ghana or Nigeria. With the arrival of A330s, new routes to India, China and Europe will be on the RwandAir network.
"This is an airline that is covering already over 80 percent of its cost, which is very good for an airline which is at an investment stage," said Girma.
SOURCE : REUTERS by Aaron Maasho : //af.reuters.com/article/investingNews/idAFKBN0N81D520150417?pageNumber=1&virtualBrandChannel=0
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