AVIATION PERSPECTIVES

Elevating the airport horizon: Air service development as a strategic engine for growth

Douglas Nyekete

 

The anticipated rise in competition among airports is redefining the economics of aviation infrastructure and demanding sharper strategic thinking across the airport business landscape. Airports can no longer rely on geography or legacy traffic flows; success now depends on deliberate, data-driven positioning.

 

To remain competitive, airport management must implement forward-looking strategic initiatives anchored on clearly defined competitive strengths. Central to this transformation is Air Service Development (ASD)—not as an auxiliary function, but as a core, long-term strategic commitment.

 

Countries are therefore expected to craft national ASD frameworks that deliberately target both domestic and international markets. In today’s global aviation ecosystem, an airport is no longer a static piece of infrastructure. It is a dynamic commercial enterprise. To thrive, airports must transition from passive recipients of airline capacity to active architects of their own growth—retaining routes, attracting new carriers, and expanding their global footprint through evidence-based market development.

 

Advancing Liberalisation Through Market Development

 

Across Africa, ASD is increasingly aligned with continental liberalisation initiatives championed by the African Union. These initiatives promote fair competition and open skies policies designed to unlock tourism, trade, and connectivity growth.

 

Despite accounting for roughly 12% of the global population, Africa contributes less than 2% of worldwide air traffic. In 2024, the continent recorded approximately 235 million passengers compared to about 9.5 billion globally—an imbalance that underscores the urgency of coordinated air service strategies.

 

Research by the World Bank highlights aviation’s outsized importance to African economies: about 20% of tourism jobs on the continent are supported by air arrivals, compared to just 4% in North America. Aligning ASD strategies with open-skies frameworks could therefore deliver transformative economic gains.

 

Zimbabwe’s own Air Service Development Plan reflects this approach, with dozens of Bilateral Air Service Agreements (BASAs) already concluded, including partnerships with major European tourism source markets such as Germany, the United Kingdom, and France.

 

Air Service Development as a Business-Level Strategy

 

At the airport level, ASD functions as a driver of core business strategies—growth, diversification, and competitive positioning.

 

Studies conducted in major aviation hubs show that airports are particularly suited to growth strategies centred on product differentiation, market penetration, and network expansion. ASD provides the operational mechanism to execute these strategies.

 

ASD and Market Penetration

 

Market penetration involves expanding an airport’s share within existing markets using current infrastructure and services. This is achieved through:

 

Enhanced service quality and passenger experience

Competitive airport charges

Coordinated destination marketing

Vertical alliances with airline partners

Such collaboration is essential to airport survival. The success of Singapore Changi Airport illustrates how strong alignment between airport strategy and national carriers can create an integrated global network and sustained competitive advantage.

 

ASD and Market Development

 

Market development refers to entering new markets with existing aviation products—routes, aircraft types, or service models. In Africa, this often requires navigating high operating costs, regulatory fragmentation, and demand uncertainty.

 

A critical enabler is the use of Fifth Freedom Rights, allowing airlines to transport passengers between two foreign countries as part of a service linked to their home base. These rights make multi-stop African routes commercially viable and stimulate intra-African connectivity.

 

Airports and airlines increasingly collaborate on joint route-creation initiatives, including:

 

1. Co-branded marketing campaigns across digital and traditional media

 

2. Frequent-flyer integration to build passenger loyalty

 

3. Seasonal incentive programmes to stimulate demand

 

4. Airport-based promotional support to raise route visibility

 

Rather than competing head-to-head, airlines now favour alliances and codeshare agreements. African carriers such as Ethiopian Airlines and Kenya Airways have demonstrated how hub-and-spoke models, partnerships, and joint ventures expand reach while managing risk.

 

Incentives, Regulation and Fair Competition

 

African airports increasingly deploy incentive schemes—landing-fee waivers, marketing support funds, and start-up discounts—to attract new services. However, these must comply with international aviation principles requiring:

 

Non-discrimination among airlines

Cost-related airport charges

Transparency in incentive structures

Consultation with users

A well-designed ASD programme typically offers 12–24 months of risk-sharing support to allow new routes to mature without distorting fair competition.

 

ASD and Product Development

 

ASD is also a catalyst for product development. New routes increase connectivity, stimulate passenger growth, and enhance financial sustainability.

 

Airports can strengthen route development through partnerships with:

 

Tourism boards for joint destination marketing

Travel agencies to create bundled travel packages

Event organisers to promote conference and festival traffic

Corporate clients to drive consistent business travel demand

Such collaboration transforms airports into integrated economic platforms rather than transit points.

 

Route Development as a Growth Multiplier

 

Route development encompasses targeted marketing activities aimed at attracting, retaining, or optimising air services. These include airline engagement campaigns, bespoke market intelligence reports, and participation in global route forums.

 

Effective ASD initiatives can:

 

Attract new airlines and destinations

Expand frequencies on existing routes

Reduce seasonality

Encourage aircraft upgrades

Lower fares through competition

Each new service feeds a virtuous cycle—greater traffic stimulates demand, which in turn attracts further connectivity.

 

Strategic Partnerships and Airport Twinning

 

Airports are also embracing international partnerships to accelerate development. For example, Airports Company South Africa established a twinning arrangement with Hartsfield–Jackson Atlanta International Airport, fostering knowledge exchange and catalysing major cargo infrastructure investment valued at hundreds of millions of dollars.

 

Such collaborations demonstrate how ASD can unlock capital flows, logistics capacity, and trade linkages.

 

Connectivity as the Ultimate Competitive Advantage

 

An accessible, well-connected airport strengthens its competitive standing relative to neighbouring gateways. Expanded passenger and cargo networks:

 

Generate direct aeronautical revenues

Increase non-aeronautical income streams

Enhance regional trade and tourism

Raise the airport’s broader commercial value

Ultimately, a robust route network is not merely operational—it is the foundation of an airport’s commercial success and its integration into the global economy.

 

A Strategic Imperative for Africa and Zimbabwe

 

The full implementation of continental liberalisation frameworks, aligned with national ASD strategies, has the potential to build a resilient aviation sector across Africa. For Zimbabwe, a committed ASD agenda can position its airports as regional hubs while advancing national development objectives and strengthening participation in intra-African trade.

 

Airports that embrace Air Service Development as a strategic discipline—rather than a marketing afterthought—will define the next era of aviation growth on the continent.

 

Douglas Nyekete is a finance and airport operations specialist, a Registered Public Accountant, and holder of an MBA in Aviation Management, an MBA, and a BCom in Accounting. He is also an Associate Member of the Chartered Governance and Accountants Institute. He writes in his own capacity.

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