Government Ownership
In many cases European airlines have had colonial influences on African airlines, so issues arose after colonial administrators left Africa and Africans began operating the carriers. Many government airlines are manned by governmental appointees as many airlines part of the structures of their respective national governments. Therefore many African airlines are not well managed. This led to airlines being operated at severe losses and/or liquidating.
In addition, profits often go into the general operating funds of their respective countries, while many governments provide insufficient capital for their airlines. Also, many governments make airlines centers for employment and overstaff their airlines, making them inefficient. Guttery said that even though the varieties of government management and ownership of African airlines "may be considered a hindrance in a world market driven by economics," due to the difficulties in raising financial capital and a lack of government infrastructure, government participation is crucial in the formation of airlines. African airlines rely on profitable international routes to subsidize less profitable domestic routes, many of which service very small communities.
Read more about this topic: Airlines Of Africa
Famous quotes containing the words government and/or ownership:
“You are, I am sure, aware that genuine popular support in the United States is required to carry out any Government policy, foreign or domestic. The American people make up their own minds and no governmental action can change it.”
—Franklin D. Roosevelt (1882–1945)
“They had their fortunes to make, everything to gain and nothing to lose. They were schooled in and anxious for debates; forcible in argument; reckless and brilliant. For them it was but a short and natural step from swaying juries in courtroom battles over the ownership of land to swaying constituents in contests for office. For the lawyer, oratory was the escalator that could lift a political candidate to higher ground.”
—Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)