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VOL.4 October 2012
The Direct Approach
Air cargo business booms as direct flights become a new growth point in Sino-Africa trade
by Yu Nan

Responding to downturn

However, despite the effect the global economic downturn is having on African trade, Chinese goods, mainly including electronics, daily commodities, and medical products, have emerged as popular items of trade among African countries in recent years, because of the rigid demand of the market, according to Shen.

Kenya Airways is really worried about a growing number of competitors in the fast-growing African aviation market.

But, it takes full advantage of its partnership with large airlines like Air France, Holland-based Martinair, and KLM, freighting its well-known East African flower export.

The Boeing 747 cargo freighter would operate the Amsterdam-Guangzhou-Nairobi-Lagos-Nairobi-Amsterdam route, with stopover in Sharjah in the United Arab Emirates on its way from Guangzhou to Nairobi.

"The plane leaves Nairobi with mainly flowers from East Africa to Amsterdam, while on the flight to China, [African] local products accounts for much of the total capacity," said Shen.

"Our company gains a unique competitive advantage, as the route has made full use of different regional resources for the purpose of better profits in order to balance the cost control well," Shen told ChinAfrica.

 

The China factor

Analysts believe that China's increasing investment in Africa is an important factor to promote the development of the African aviation industry.

He Wenping, a researcher of African studies at the Chinese Academy of Social Sciences, said the new prosperity of Africa to a certain extent benefits from China's investment and continuous strengthening of the bilateral economic and trade cooperation. "China factors" not only contributed to Africa's economic development, they are also an important impetus for the development of African aviation industry.

"Cargo demands and market capacity between Guangzhou and Nairobi are developing fast since the direct route opened," Shen added. "Kenya Airways will make efforts to expand the market share."

In recent years, civil aviation in China-Africa cooperation has shown good momentum for development. China had signed civil aviation transport agreements with 22 African countries by the end of 2010. The African airlines such as Egypt, Ethiopia, and Zimbabwe have opened scheduled direct flights to Beijing and Guangzhou. In this April, China and Africa signed a Memorandum of Understanding of Civil Aviation, reaching a framework agreement in terms of information exchange, personnel training and co-sponsored projects.

Insiders note that these direct transportation routes between Africa and China are important for bilateral trade, tourism and overall economic growth.

Kenya ICT Board occupied a large exhibition area at the China Beijing International Fair for Trade in Services held in May 2012. "In addition to promoting Kenya's horticultural and agricultural products, textiles and garments, and electronics exports to China, we are looking forward to seeing further cooperation in the service trade areas of aviation and tourism," the organization's Deputy CEO Eunice Kariuki told ChinAfrica. "We will be happy to see more Chinese people to travel to our country by the scheduled direct flights of Kenya Airways."

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