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AFRICA: A different kind of Visa

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With a little imagination, a new Visa card being sponsored by an East African bank and Kenya’s national airline could serve as a model for promoting black American travel to Africa.

Kenya Airways Boeing 767

Kenya Airways Boeing 767

In Sunday’s IBIT Travel Digest, I mentioned the new Visa card from Kenya Airways, backed by Barclay’s Bank of Kenya.

That raises some intriguing possibilities.

On this side of the Atlantic, many black Americans would love to visit Africa if only they could afford it, and black-owned banks that could use an infusion of capital to invest in Black America.

On the other side, many of Africa’s 54 nations are eager to welcome black American visitors. There are credible African airlines that would love to bring us there. There also are some African banks that could benefit from building business relationships in North America.

What would happen if all these folks started talking to one another?

Maybe something wonderful.

Suppose those African airlines were to offer a credit card in this country, through a cooperative agreement between black-owned US banks and an African bank. The cardholder could choose between building mileage credit toward free flights on the sponsoring African airline, or a cash rebate.

But why stop there?

The airline could work with hoteliers and tour operators in the host country to put together an all-inclusive tour — lodging, meals, transport, tours, transfers to/from airports, everything.

Tours could be designed around different themes, keyed to a visitor’s interests:

  • EDUCATION — language, African history, Diaspora history and heritage, science, conservation
  • CULTURE — art, music, fashion, food, nightlife, religion
  • RECREATION — hiking, bicycling, boating, surfing, diving
  • BUSINESS — investment opportunities
  • NATURE — conservation, safaris

The possibilities are as varied as Africa itself.

But the card simply would be part of the bank’s package to its new customers. The principal feature of that package would be a savings account, to which you commit to making monthly deposits.

No minimum starting balance. Deposit as much or as little monthly as you want, as long as you deposit something. In effect, it would be a monthly bill, with one critical difference: You’re paying yourself.

Once you build up enough cash, you log onto the bank’s Web site and select your Africa tour package. Within seconds, your trip is paid for, your flights and hotels booked. Travel insurance would be included automatically as part of your credit card account &mdash just as it is with the Kenya Airways card.

The remaining money in your account becomes your spending money in Africa, cash you can withdraw from the ATM machines of the US bank’s partner in Africa.

Next stop: The Mother Continent.

Upon your trip, start saving for your next trip to Africa. Or South America. Or Europe. Or any other purpose. It’s your money.

Putting all this together definitely would be a challenge, and not just on the banking side.

Currently, only six Africa-based airlines make direct flights to the United States — Nigeria’s Arik Air, Ethiopian Airlines, South African Airways, Cape Verde Airlines, Egyptair and Morocco’s Royal Air Maroc. But all either have or are capable of making codeshare agreements with US or European airlines that fly between the US and Africa daily.

Ethiopian Airlines already is a member of Star Alliance, the world’s largest alliance of codesharing airlines.

This could work. The key to making this work is saving.

Consider the amount of money annually estimated to be floating around in Black America, — currently about $1.1 trillion. How do financial experts describe all this money we collectively have? “Black wealth?…”Black economic strength?”

No and no. It’s invariably referred to as “black purchasing power.”

And brother, do we ever purchase. We spend money as if it were about to evaporate, caught up in a society that pushes us 24/7 to BUY! BUY! BUY! The word “bling” used to represent the sound of a bicycle bell — until we got hold of it.

Now look at China. The country pays some of the world’s lowest wages, and yet Chinese tourists are fanning out across the globe. The Chinese are known as the world’s most ferocious savers.

Coincidence? I think not.

Some, like this long-winded financial wonk, say it’s a matter of government policy. The Chinese themselves say it’s a cultural thing. Either way, they put their money away.

Imagine what we could achieve if we did the same with just 1 percent — one penny on every dollar — of that $1.1 trillion. That would put $11 billion into banks that we own, money to invest on homes, on creating businesses and jobs, paying for education. Paying for travel.

You can do a lot with $11 billion.

Am I dreaming? Sure, but why not? Small dreams are a waste of sleep.

A Dreamliner of Africa

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Boeing 787 Dreamliner of Ethiopian Airlines

Image courtesy of Boeing

One of Africa’s premier airlines is the first on the Mother Continent to acquire Boeing’s new 787 Dreamliner. The implications for African travel are enormous.

While US-based airlines wait to get their hands on the Boeing 787 Dreamliner, the world’s newest jumbo jet is already changing the game in Africa.

Ethiopian Airlines is the first African carrier to put Boeing’s new state-of-the-art airplane into regular service on the Mother Continent. The first arrived last December and Ethiopian has nine more on order.

This comes as Ethiopian becomes the 26th member of the Star Alliance, the world’s largest airline alliance.

Both of these developments carry huge implications for American travelers with an interest in Africa.

Let’s start with Boeing’s shiny new toy. The Dreamliner is likely to have a much greater impact on African tourism than the Airbus A380 super-jumbo jet, at least in the near term.

Simply put, the 787 is more Africa-ready than the A380. Here’s why.

With the A380, Airbus took the position that “bigger is better,” creating the world’s first fully double-decked airliner, capable of flying as many as 800 travelers at a time.

Big plane equals more seats and (in theory, at least) cheaper seats.

Boeing chose range and fuel economy over size, limiting the Dreamliner to fewer than 300 passengers and marrying its two highly fuel-efficient engines to an aircraft made mostly of lightweight composites instead of metal.

That gives the Dreamliner a maximum range of nearly 9,500 miles, which puts virtually all of Africa within easy reach from virtually all of North America.

As an example, the 6,200 miles between Los Angeles and Dakar, Senegal would be nothing for this airplane.

This means that airlines like Ethiopian, Nigeria’s Arik Air and Kenya Airways, both of which have 787s on order, will be able to reach European and American destinations in one hop, without pilots nervously watching their fuel gauges.

Until more Africans start traveling by air, the 787′s extended range serves the Mother Continent better than the A380′s size. And with most of Africa’s international airports lacking the facilities or the runways to comfortably handle the massive A380, the Dreamliner literally is a better fit.

Where Africa-bound Americans are concerned, Ethiopian’s presence in the Star Alliance is just as important, especially if you happen to be a member of United Air Lines’ or US Airways’ frequent-flyer mileage program.

Star Alliance is now the only airline alliance in the world with three African airlines as members — Ethiopian, South African Airways and Egyptair. You now can put your United or USAir miles toward an Africa flight on any one of them.

Kenya Airways is a member of the SkyTeam alliance, which means you can use your Delta frequent-flyer miles with them.

Meanwhile, Arik Air was accepted late last year as a member by the International Air Transport Association, which sets safety standards and represents most of the world’s airlines. That clears the way for Arik to join an alliance.

oneworld is now the only one of the Big Three alliances without an African partner. Arik Air membership in oneworld would enable travelers holding miles on American Airlines or British Airways to snag code-share flights to West Africa via Arik.

Don’t be surprised, then, if oneworld puts the moves on Arik Air to partner with them.

What’s more, international airlines can and do form code-sharing partnerships outside of the alliances. South African Airways, for instance, has already hooked up with JetBlue.

Expect to see more connections like this, and soon.

Without the 787′s ultra-long reach, we wouldn’t even be having this conversation. With this new long-range airliner coming into African hands, a whole world of new opportunity now opens up for them — and for the world’s travelers who are increasingly turning their eyes to Africa.

ALSO CHECK OUT:
Know your alliance, Part 1 Part 2
New wings over Africa, Part 1 Part 2
Dreamliner sighting
Delta does Africa

Africa can’t wait

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If there’s ever to be a true bridge of travel and tourism between America and Africa, it may be up to Africans to take the lead in building it.

Among many Americans, Africa has the image of being some sort of nether region — unknown, unsafe, unattractive and unappealing.

Nothing, nothing, nothing and nothing could be further from the truth.

Incredibly beautiful land and seascapes. Flora and fauna found nowhere else on Earth. Growing and vibrant urban scenes. Historical and cultural heritage. Almost every type of niche travel that exists. Wide-open business and investment opportunities. The Mother Continent has got a lot going for it.

And statistics would suggest that a growing number of Americans are starting to “get” all of that.

In 2008, while the number of Americans flying abroad dropped 1.4 percent overall, U.S. air traffic to Africa rose nearly 56 percent. In 2009, when the overall traffic dropped 2 percent, Africa-bound air traffic rose nearly 25 percent. In the first six months of 2010, the most recent numbers I’ve found so far, the number of Americans flying to Africa was up about 17 percent.

Add it all up and it means the flow of U.S. air travelers to the Mother Continent has risen nearly 40 percent in the last two and a half years. — and that was while we were in the middle of a recession.

There’s something else at work here, too.

A MARKET IN WAITING
A fair number of people in a good number of sub-Saharan African countries would love to see their their African-American brethren engaging with their ancestral homelands. That’s a market just waiting to be tapped.

What’s more, a lot of African peoples would love to see Americans in general more involved commercially across the continent, if only to provide a kind of counterweight to the financial clout of China.

A survey of African views of China by Aleksandra Gadzala and Marek Hanusch found that Africans in general may be equally skeptical of both of China and the West, but that:

“Africans who attach particular value to human rights and democracy are overall largely critical of the burgeoning Chinese presence across the continent.”

From shoddy products to indifference toward the health and safety of African workers, the views of many on the Mother Continent toward the Middle Kingdom are changing. A great many Africans view the Chinese as standoffish and condescending, with neither interest in nor respect for African cultures or peoples.


You can read the entire survey report in the form of a PDF file on the Afrobarometer site here. Click on the link marked WP117.

I’ve had it put to me pointblank — and in these words — by African diplomats, journalists and ordinary citizens:

“We see the Europeans here. We see the Chinese here. Where are the Americans?”

It’s a good question. You’d think that America’s travel industry, especially its hard-hit airlines, would be all over this.

If they are, they’ve done an excellent job of hiding their interest.

So far, Delta and United air lines are the only U.S.-based carriers providing direct flights from the continental United States to Africa, especially sub-Saharan Africa — and even then, only to a relative handful of cities.

Let’s be real here. Obstacles abound.

BIG HURDLES
U.S.-based air carriers are justly dubious about airport infrastructure and security in many African capitals. Our own FAA has little confidence in their civil aviation counterparts in most African countries.

Once you get to Africa, the challenges don’t stop.

Whether from other continents or from within Africa herself, the international traveler needs safe and efficient air, rail and road links, and streamlined customs and immigration procedures to move smoothly and easily between countries. Right now, for the most part, they don’t exist.

When travelers find it easier, safer and at times even faster to travel to neighboring African countries by connecting through London or Paris, that’s a problem.

There are people taking on these challenges from both sides of the Atlantic Ocean. But if the nations of Africa wait for the United States to take the lead in creating this market, they will be waiting in vain.

To be sure, the major players of the U.S. travel industry probably would love to see a thriving U.S.-Africa travel market, but they have little desire to do the heavy lifting needed to get this ball rolling.

AFRICAN INITIATIVE
If this great, lucrative bridge is ever to be built, its construction will have to start from the African side of the Atlantic.

But you know what? Africa can do this.

It’s going to take time, hard work, money. It will take peace and political stability within nations. But it also will take something else — an unprecedented level of trust and cooperation among African governments.

Most countries in the world would love to have their own national flag airline representing themaround the globe; reality says “no.” Running a trans-continental airline is forbiddingly expensive, even for countries that can actually afford it.

A regional approach to this could make a world of difference.

Take (or create) perhaps four African airlines — one each serving North, East, West and Southern Africa — and make them capable of true trans-continental operation, with airliners capable of connecting virtually any two major points on the globe in a single direct flight.

The nations of each region would contribute to flight crews, maintenance crews, airport operations. All would share the costs and the profits.

Not having to fly to Europe and connect to a second long flight to reach African destinations would make Africa travel a lot more attractive to a good many Americans, among others.

REGIONAL THINKING, GLOBAL REACH
Sound far-fetched? Not from the technical side. Airliners capable of flying non-stop between African and U.S. destinations already exist — and a handful of them are already in Africa.

Boeing has extended-range versions of its popular 767 and 777 jets. The “ER” stands for extended range. The 767 can fly nearly 7,000 miles, the 777 almost 8,000 miles non-stop, with 200 to nearly 400 passengers.

These African airlines already fly one or more of these aircraft:

  • Arik Air (Nigeria)
  • Ethiopian Airlines
  • Kenya Airways
  • TAAG (Angola)

Just this year, Ethiopian became the first African airline to take delivery on a new model, the 777-200LR. The “LR” stands for “Longer Range” and can fly nearly 9,000 miles non-stop.

Airbus also is in this mix with its own long-range airliners, like the A340 series. These African airlines already fly them:

  • Arik Air
  • Air Mauritius
  • Air Nambia
  • Egyptair
  • South African Airways

Once on African ground, smaller regional airlines, brought up to speed with the help of our FAA through efforts such as its Safe Skies for Africa program, could distribute foreign visitors through each African region. And a streamlined visa process similar to that of the European Union could enable them to move from country to country on a single tourist visa.

Those transcontinental African carriers, meanwhile, could use the long reach of their extended-range jumbo jets to tie all of Africa together.

Is all of this radical, even wishful thinking? Perhaps. But as I like to say, small dreams are a waste of sleep.

When your continent holds 12 percent of the world’s population but accounts for less than 1 percent of its air traffic, it’s time to start thinking — and doing things — differently.

Especially when 20 percent of all the tourism-related jobs in Africa are generated by travelers arriving by air.

Africa can overcome this challenge. But she cannot wait for outsiders to lead the way.