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Cameroon – Transport: Camair-Co records cumulative losses of FCfa 34 billion over the 2012-2014 period, and the situation worsens

Camair-co
Written by Deckson N.

Cameroon Airlines Corporation (Camair Co), the Cameroonian public airline company, has lined up successive losses of FCfa 13 billion in 2012, a little more than FCfa 4 billion in 2013 and FCfa 17 billion in 2014. In total, the airline carrier has lost FCfa 34 billion over the three-year period 2012-2014.

These figures contained in the company’s recovery plan, that the American construction company Boeing has just submitted to the Cameroonian government, worsened in 2015, and should further worsen in the year 2016, authorised sources within the airline company maintain.

Indeed, we learn, for many months now, Camair Co is struggling to maintain the minimum service as the company’s five aircraft are grounded due to engine failure or lack of spare parts. A few weeks ago, the local Aviation Authority temporarily excluded the Europe zone from the airline operator transport certificate issued to this company.

But, according to sources close to the Camair Co dossier within the government, these successive losses are explained by the company’s business model. “The company’s expenditures largely exceed its revenues”, reveals our source.

In detail, we learn, fuel costs, which must now be paid in cash due to the company’s insolvability, represent more than 60% of revenues ; against 49% for fees paid to the Cameroonian airport company Société des aéroports du Cameroun (ADC) for ground services. Salaries represent 20% of revenues, against 16% for aircraft maintenance costs. All being 140% of Camair Co revenues, excluding depreciation charges, states our source.

“Passengers should no longer be the sole source of Camair Co revenues. They must start other activities such as freight, that generate substantial revenues; in-house maintenance as external maintenance costs the company too much ; establish an aviation training centre with simulators, to enable the company to train staff from other airline companies and for continuation pilot training, on which airline companies generally spend a lot of money”, suggests our source.

And to continue, while also recommending the internalisation of ground assistance to aircraft : “the plan proposed by Boeing is organised around the multiplication of aircraft and destinations. There is no point having thousands of planes if the company’s business plan doesn’t spur profitability”.

Via BIC

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Deckson N.

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