Wednesday, January 25, 2012

The Surge into Africa

The world does not wait, while you are sitting in the potty ("going through crap") and the rule applies perhaps more vigorously to our Industry than the rest. The Aviation Industry is in a perpetual hurry. 

So, with this master piece of an acquisition- Etihad's 40% buy into Air Seychelles,  a classic inorganic growth strategy fit for a latecomer to the market vs. someone like Emirates that has painstakingly built an organic business since 1986-7 (over 20 years) to reach where they are, is also the beginning of the surge into near virgin Africa. 

This also comes at a time, when Emirates is increasingly facing more resistance to roll out their organic growth program- from countries like Canada, Germany, Australia and even India (no A380's allowed so far). 

And if you have noticed where Seychelles is located and how many bilaterals they hold, it could also mean the end of the infantile, fragile & nascent, dream of several African and Indian/ Asian carriers to connect Asia to Africa. 

Because this would mean that India & large parts of Eastern & Southern Africa could be connected using a narrow body with a good range. 

Time will tell.  


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