Carrier self-interest erodes airfreight market share

Roadfreight is increasingly
eroding airfreight market
share as airline monopolies
drive up rates, according to
industry commentators.
Peter Musola, general
manager: cargo at Kenya
Airways told FTW that
government policies were
designed to protect the
interests of the national
carriers. “But by doing
so they eliminate healthy
competition which, in the
long run, is better for the
economy of the country
and the continent.”
According to Musola,
there needs to be “more
informed” government
involvement to help
eliminate barriers to
competition.
Meshack Kipturgo,
managing director of
ground handling company
Siginon Aviation, pointed
out that airlines and
aviation companies needed
improved competition in
order to meet the needs of
the shipper.
A Mozambican shipper
said that airfreight
rates had made the use
of airfreight “almost
impossible”. He pointed
out that Mozambique’s
national carrier, LAM, had
lost 95% of its cargo to
roadfreight.
This, he explained, was
due to “unaffordably high”
rate charges. “The Maputo
airport charges import and
export rates as well as US$1
per shipment for security
and related charges,” he
said. He believes that
airport and freight rates
should be standardised
across African countries
to ensure not only airline
competition but improved
intermodal competition.
Kipturgo commented
that increased competition
would automatically result
in reduced rates.