Some of the local ‘low-cost’ carriers appear to have missed almost every lesson from Southwest’s playbook.
When the Ryan brothers launched an upstart airline in 1986, it was a shoestring operation: one turboprop shuttling between Waterford in south-east Ireland and London’s Gatwick Airport. Their father, Tony Ryan’s 10 per cent stake in Guinness Peat Aviation gave him sufficient wealth to invest a million Irish pounds, roughly Sh180 million. But the real innovation was what they chose to copy. They lifted their model from Southwest Airlines, the Texas carrier that had mastered cost leadership and quietly rewritten the rules of aviation.
Southwest’s genius lay in disciplined execution of a brutally simple idea. They flew into secondary airports. They turned planes around in 15 minutes while competitors took 55. They operated a single aircraft type, the Boeing 737, slashing complexity in maintenance, training and spare parts.
When Ryanair entered the Dublin-London route, they knew three-quarters of a million travellers were choosing the nine-hour rail and ferry slog over the one-hour flight. By undercutting established carriers, they were not just fighting airlines. They were competing head-on with ground transport.
Today, Ryanair is Europe’s largest airline. A typical ticket is about 44 euros, roughly Sh6,160. Ryanair achieves this by applying Southwest’s principles to the letter: secondary airports, quick turnarounds, point-to-point flights, a single aircraft type and a mindset that treats aviation as mass transport, not a luxury product.
Now contrast this with Africa’s supposedly “low-cost” carriers. As I wrote this article, I checked ticket prices from Nairobi to Mombasa. The average was Sh18,500. Over the same period, a ticket from Paris to London cost about Sh6,000, for almost the same flight distance.
Local ‘low-cost’ carriers
Some of the local ‘low-cost’ carriers appear to have missed almost every lesson from Southwest’s playbook. They operate primarily from congested JKIA, paying premium gate fees. Turnaround times are nowhere near Southwest’s 15-minute benchmark. They offer onboard sales of meals, the very frills Southwest stripped away to cut costs. Most importantly, they prices its services for business travellers and the urban middle class, not for the millions who still rely on buses or the SGR.
In Africa, low-cost carriers represent only about five per cent of total seat capacity, compared to roughly 45 per cent in Europe and 40 per cent in Asia.
But even if African airline executives wanted to copy Southwest faithfully, most of them could not. The deck is stacked against them by governments that treat aviation as a cash cow rather than critical infrastructure.
Fuel prices in Africa average about 17 per cent higher than the global average and account for roughly 40 per cent of airline operating costs, compared to about 25 per cent globally. West Africa is the most expensive region in the world for passengers, with an average of $110 in taxes, charges and fees paid per passenger for international departures, roughly Sh14,300.
The tragedy is that Africa needs the Southwest model more than any other region. We do not have Europe’s or China’s dense rail networks or America’s interstate highways. On a continent larger than China, India, the United States and most of Europe combined, aviation is not a luxury. It is the only practical way to knit fragmented markets into a single economic space.
Liberalise African air markets
In 1999, African ministers signed the Yamoussoukro Decision, a continent-wide agreement meant to liberalise African air markets, remove restrictive bilaterals, and open the skies to competition. Twenty-five years later, progress has been painfully slow. We have talk of a Single African Air Transport Market and occasional pilot routes, but for most travellers, the promise of cheaper, more frequent intra-African flights remains a distant dream. In the meantime, our entrepreneurs still fly through Dubai or Doha to reach Lagos, and our economies remain locked into colonial-era trade patterns.
Fixing this requires both operational excellence and political courage. On the airline side, Africa needs carriers willing to embrace the hard discipline of cost leadership: single aircraft types, serious use of secondary airports, a ruthless focus on rapid turnarounds, and point-to-point routes designed around demand rather than prestige.
On the policy side, African governments must stop treating aviation as a luxury tax on the rich. Fuel taxes and surcharges that make jet fuel 17 per cent more expensive than the world average must be revisited. Airport and navigation charges have to be brought closer to global norms.
Taxes, fees and opaque regulatory barriers that push up fares and depress demand must come down if we are serious about integration.
If we want a continent where a young Kenyan can affordably attend a conference in Lagos, where a Tanzanian entrepreneur can regularly fly to Kinshasa, and where regional tourism flourishes beyond a tiny elite, then we must stop pretending. Africa’s skies will only open when we match Southwest’s operational discipline with political choices that stop punishing people for the simple act of crossing their own continent.
The writer is a whistleblower, strategy consultant, and startup mentor, www.nelsonamenya.com
