RwandAir receives another A330 but is their strategy sustainable?

December 1, 2016. RwandAir receives a second brand new A330 as the airline embarks on its strategy to connect Rwanda to points outside of Africa.

During the CEO panel at the 2016 AFRAA AGA, Mr Busera Awel, CCO of Ethiopian stated that if an airline is not profitable in Africa before expanding its operations overseas it will die. Whilst helping set up ASKY in Togo, Mr Busera said he repeatedly ignored calls to start operations to Paris until the airline was profitable in Africa.

A strong statement that led Mr Raphael Kuuchi, VP Africa at IATA to ask the RwandAir CEO:

"Is Rwandair commuting suicide by buying wide bodies before they are profitable and sustainable in Africa?"

A tough question to answer. However, the CEO, John Mirenge took this head on and identified 3 key points that he feels will ensure their success:

1. Rwanda as a country does not have a reputation for being reckless.
2. RwandAir's growth plan is performing according to the predicted trajectory.
3. African routes do not currently offer the yields that they have previously due to the commodity crisis, so the simple fact is they have to look elsewhere. He believes that by only having one trunk route out of the continent, they cannot compete. RwandAir may be a young airline but it has grand ambitions to leap-frog the competition.

There is little doubt that the strategy is bold and innovative for the African continent. I for one hope it pays off and paves the way for other African countries to invest in their aviation industries and identify the sector as an economic catalyst.

Happy landings Umurage from all at AviaDev!