30/07/10, 05:54:57 EDT

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CHOGM: Big Airlines shun chance to be official carrier

nationmedia.com

Uganda has missed out on a major branding opportunity for the country pegged on the forthcoming Commonwealth Heads of Government Meeting (CHOGM 2007), after failing to persuade any of the airlines operating in the country to act as official carrier for the meeting.

It appears that the lack of a positive response could have been due to the fact that the country has no national carrier, while the market of Chogm delegates is too dispersed across the globe for a single carrier to consolidate.

At least eight of the 15 international airlines — including British Airways — that serve Entebbe, were considered eligible for the status of official airline of the meeting and the Uganda Civil Aviation Authority sent out an invitation to them in March, but now says that it has not received any response.

Ignie Igunduura, spokesman of the authority said, “We sent out an invitation through their local association, the Board of Airline Representatives, in March and even held subsequent meetings with the airline but we are puzzled by the lack of response. It is likely that they did not understand what was required of them.”

This lack of clarity however could have been the result of the civil authority’s own failure to generate a specific proposal.

In its March 15 letter to the airlines, the authority alluded to a premium to be paid by the successful carrier but did not attach a detailed proposal. Instead, the airlines were given loose extracts of sponsorship highlights developed by Malta when it hosted the 2005 event.

Apparently, it is the Chogm fundraising committee that was supposed to develop the specific sponsorship details, but its failure to do so could be a pointer to the capacity constraints that have bedevilled the preparations for the summit — from failure to execute high-cost infrastructure projects to simple projects such as sprucing up the capital.

Brussels Airlines manager for Uganda and current chair of the Board of Airline Representatives, Pierre Declerck, said he was not surprised by the absence of even a lukewarm response from the carriers. “There was no direct benefit for us; it is difficult to say who would benefit most because the bookings are too dispersed across the globe for a single operator to consolidate the business,” he said.

Although the November meeting is expected to attract a minimum of 2,000 international delegates, they will come from a diverse background, with small island nations scattered across the Pacific constituting a sizeable block. Of the 53-member club, Africa has the highest number with 18 members, followed by the Pacific region, the Americas and, the Indian Ocean region with only two from Europe.

Typically, meetings and international events of this stature are coveted by airlines for their revenue generating potential and marketing opportunity, while host countries benefit through national carrier branding and the premium the successful carrier pays for the privilege.

Mr Declerck says the situation would have been different if Uganda had a national carrier to take the lead role.

Even if it were not a major player on the international scene as was the case with Malta, a national carrier would have made a difference as it would have partnered with the different operators. With a national carrier it would have been obligatory to brand, but in its absence nobody has that obligation,” he said.

Mr Igunduura said although it would seem that British Airways, which serves Entebbe three times a week, would have been a natural choice, they did not want to appear to be favouring anybody in a market served by several foreign operators. “All the same, it was surprising that none of them responded because it was still possible for them to split the market depending on their individual networks,” he argued.

Industry sources however say that it is for that very reason that the airlines did not bother because they can still get the business without incurring any additional expenditure on sponsorships.

Besides that, the designated carrier would have had to brand a number of its aircraft with the meeting’s logo, something that can cost as much as $10,000 per aircraft depending on the size of the craft and colour combination.

Everybody now agrees that it is practically impossible for Uganda to redeem the situation in the two months left to the meeting, as delegates will have already made their travel arrangements by now.

 Printable Version  | published Sep 09, 2007