Difficult year ahead in E Africa.

Position:OIL AND GAS
 
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East African airlines face a difficult year ahead due to projected low demand in the African market as infrastructure constraints and heavy taxation continue to pile up costs. Latest projections by the International Air Transport Association (IATA) show that Africa was the only region to see a decline in demand towards the end of last year.

Most of the East African airlines, such as Kenya Airways, rely largely on the African market for their business. Africa accounts for nearly half of Kenya Airways' $1.1bn turnover. The outlook is further complicated by the operations of the airlines which are faced with a trend where passengers are demanding top-of-the-range safety and service, yet airlines operate small, old planes which can no longer do the job and global airlines scrambling for...

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