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The ups and downs of Somali owned Airlines.

Somalia’s recent history has often been marred by its associations with challenges like piracy, drought, civil war, and terrorism. Since the disintegration of a united Somali state in 1991, the country has endured the widespread destruction of its infrastructure, leading to severe economic downturns that have impacted nearly every sector from agriculture to public services.

Despite these overwhelming obstacles, some sectors have seen remarkable growth, driven by the resilience and entrepreneurship of Somali businessmen and women. Notably, the air transport sector has experienced a roller-coaster journey, highlighted by significant successes and formidable setbacks.

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The glory days of Somali Airlines

In the era prior to the devastating civil unrest that began in 1991, air transportation was a thriving industry in Somalia, epitomized by the national carrier, Somali Airlines.

Established in 1964 through a joint venture between the Somali government and Alitalia, Somali Airlines, affectionately known as the White Star service, quickly became a symbol of national pride and progress.

The carrier stood among pioneering African airlines such as Egypt Air, Ethiopian Airlines, and South African Airways. Renowned for its excellent on-board service, Somali Airlines connected Somalia with major global cities including Moscow, Frankfurt, Rome, and Cairo, along with regional centres like Jeddah and Abu Dhabi.

The airline not only symbolized national pride but also showcased highly skilled pilots and engineers. Its success story, however, came to an abrupt halt with the onset of the civil war in the early 1990s, leading to the collapse of the airline and the subsequent migration of its trained workforce to international carriers like Saudi Arabian Airlines and Lufthansa.

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The emergence of private carriers

In the absence left by Somali Airlines, a number of privately owned carriers sprang up, including African Express Airways and Daallo Airlines, soon followed by Damal Airlines, Inter-Somal Airways, Star Airlines, and Jubba Airways. These airlines were instrumental in re-establishing air links between Somalia and the rest of the world, especially enhancing trade and personal connections with the Gulf States.

The economic impact of these airlines was significant, creating jobs and supporting the livelihoods of thousands of Somali families, demonstrating a successful model of private enterprise thriving in a challenging environment.

https://jubbaairways.com

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The impact of September 11 on Somali-owned Airlines

The prosperity enjoyed by these airlines was dramatically affected by the events of September 11, 2001. This pivotal moment in global aviation history ushered in sweeping changes to security protocols, insurance requirements, and operational costs, affecting airlines worldwide, including those owned by Somalis.

The aftermath of these attacks reshaped the landscape of international travel, imposing significant financial burdens, especially on smaller carriers operating in the volatile regions like Somalia.

https://www.cnbc.com/2021/09/11/how-9/11-forever-changed-air-travel.html

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Heightened security measures and associated costs

Following the terrorist attacks, stringent security measures were adopted universally across the aviation sector. These included enhanced screening procedures, increased scrutiny of passengers, and the introduction of new security technologies at airports.

For Somali-owned airlines, the costs associated with complying with these enhanced security measures were substantial. Implementing state-of-the-art security equipment and training staff in new security protocols demanded significant financial outlay. Moreover, operating from regions where infrastructure was already compromised meant that these additional security measures posed logistical as well as financial challenges.

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Skyrocketing insurance premiums

Another direct consequence of the September 11 attacks was the dramatic increase in aviation insurance premiums. Insurers reassessed the risks associated with air travel, leading to escalated costs for airline liability coverage. For Somali-owned airlines, this resulted in a sudden and steep rise in operating costs.

These carriers, which were already operating on thin profit margins, found themselves facing insurance premiums that were several times higher than the rates before September 11. The increased cost of insuring aircraft and passengers against potential threats became a critical financial strain, impacting their overall sustainability.

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Aircraft, Crew, Maintenance, and Insurance (ACMI) lease costs and constraints

Aircraft, Crew, Maintenance, and Insurance (ACMI) leasing arrangements became more expensive and complex post-September 11. As the demand for more comprehensive insurance coverage increased, the costs incorporated into ACMI leases surged. For Somali-owned airlines, which often relied on ACMI leases, these increased costs further strained their financial resources.

The need to meet stringent security and maintenance standards as part of ACMI agreements also meant that Somali carriers had to invest more heavily in ensuring their fleets and operations met these elevated standards, compounding the financial burden.

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Soaring fuel costs: A turbulent challenge for Somali-owned Airlines

The issue of soaring fuel costs has historically been a formidable challenge for the aviation industry worldwide, and Somali-owned airlines have been particularly vulnerable to these fluctuations.

The root cause of these escalating fuel prices was due to the ongoing unrest and political tensions in the oil-rich regions of the Middle East at the time. These geopolitical conflicts often lead to instability in oil production and supply chains, causing spikes in fuel prices that can severely impact airline operations.

For Somali-owned airlines, the impact of these fuel cost increases was profoundly damaging as the fuel typically represents one of their largest expenses. When fuel prices rise sharply, it places immense financial strain on airlines, particularly those operating in regions like Somalia where economic conditions are already challenging and market environments are less stable.

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UAE visa restrictions and regulatory challenges

In 2004, the United Arab Emirates (UAE) made a significant policy change that had profound implications for Somali citizens: it banned the issuance of visas to individuals holding Somali passports.

This decision, while aligned with the UAE’s broader immigration and security strategies, had far-reaching effects, particularly for the Somali community that relied heavily on the UAE for business, employment, and family connections.

Impact on the Somali community

The visa ban had immediate and significant effects on the Somali diaspora. Many Somalis had established themselves in the UAE, engaging in various sectors including trade, education, and services.

The ban disrupted these activities, complicating legal residency and work status for many. Families were divided, as some members found themselves unable to renew their visas or bring over family members from Somalia.

Moreover, the ban affected travel and logistics. Somalis looking to travel to the UAE for business or personal reasons found themselves facing significant hurdles.

This restriction not only impacted individual travellers but also Somali businesses that depended on the UAE as a central hub for goods, services, and financial transactions.

http://news.bbc.co.uk/2/hi/africa/3700525.stm

Another blow to the Somali-owned Airlines

In 2004, the Civil Aviation Authority (CAA) of the United Arab Emirates (UAE) made the significant decision to suspend all operations of the Russian-made Ilyushin Il-18 aircraft within its airspace. The primary reason for the suspension was safety.

The Ilyushin Il-18, a turboprop airliner designed in the 1950s, had been in service for several decades by the time of the suspension. Despite its historical significance and widespread use in various countries, the aircraft had accumulated a record of safety incidents globally, which raised red flags for aviation safety authorities.

Older aircraft often face increased risks of mechanical failures and other safety-related issues. The aging airframes, combined with potential issues related to maintenance, reliability, and availability of spare parts, contributed to the growing concerns about the aircraft’s safety.

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Personal reflections

As a cabin crew member aboard the Ilyushin Il-18, the skies were my second home, and the diverse landscapes of Somalia and beyond were the backdrops of my daily routine.

This aircraft, a robust symbol of resilience, was perfectly suited for the rugged and often unpaved airstrips scattered across Somalia—Berbera, Hargeisa, Mogadishu, Bosaso, Galkayo—and even farther afield to the bustling hubs of Dubai and Sharjah.

Being part of the cabin crew on such flights was about more than serving meals and managing safety; it was about witnessing the human spirit in its many forms. I met people from all walks of life: traders eager to export their goods, families embarking on long-awaited reunions, and travellers exploring the vast and varied landscapes of the Horn of Africa.

Each passenger brought their dreams and stories aboard, sharing snippets of their lives in the confined space of an airplane cabin, turning every flight into a tapestry of human experiences. The joy of the job came from these interactions—from the smiles of first-time flyers gazing out at the sprawling landscapes below, to the seasoned travellers who knew the aircraft’s every hum and rattle. It was in the way a simple gesture could bridge language barriers and how shared laughter could dissolve the distance between cultures.

Through it all, the Il-18 was more than just a machine; it was a vessel of hope and connectivity, a sky-bound vehicle powered by the dreams and daily lives of everyone it carried. As I think back on those days, each flight feels like a chapter from a grander story—a narrative of connection, of overcoming challenges, and of the sheer joy found in the journey and the myriad people who shared it.

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The decline and bankruptcy

The combined impact of increased security, higher insurance premiums, higher fuel cost, visa ban, costlier ACMI arrangements etc. forced many Somali-owned airlines to reassess their operational strategies. Routes that were once profitable became unsustainable under the new cost structure. Some airlines were compelled to reduce the frequency of flights or even cancel less profitable routes altogether. These airlines, already navigating a complex array of operational challenges, were unable to sustain the additional burden of costly fuel, leading to their eventual downfall.

Against all odds: Daallo Airlines continues to fly high

While many Somali-owned airlines have ceased operations, Daallo Airlines continues to stand as a resilient survivor and a beacon of progress. Established amidst the backdrop of Somalia’s civil war in 1991, Daallo Airlines was born from the vision of entrepreneurs Mohamed Haji Abdillahi (Abusita) and Mohamed Ibrahim Yaasiin (Olad), who recognized the critical need for reliable air transport in a region riddled with instability.

Since its inception, Daallo Airlines has successfully navigated through numerous challenges, gradually establishing itself as a pivotal player in the Somali air transport sector.

Today, Daallo Airlines serves an extensive network of destinations, including key cities in the Horn of Africa and the Middle East. It connects Somali cities such as Mogadishu, Hargeisa, and Bosaso with international destinations like Nairobi, Dubai and Jeddah. This extensive route network not only caters to the Somali diaspora, seeking connections back home, but also supports vital business and trade links essential for the region’s economy.

https://daallo.com

Daallo Airlines is more than just an airline; it is a crucial link that binds the Somali people, whether at home or abroad. Its story is one of overcoming adversity and seizing opportunities, emblematic of the enduring spirit of Somali enterprise. As it continues to soar above the challenges, Daallo Airlines not only transports passengers but also carries the hopes of a nation eager to reconnect with the global community.

Conclusion

The story of Somali-owned airlines represents both significant potential and substantial challenges. Facing external pressures like restrictive international regulations and internal obstacles such as infrastructural deficiencies and political instability, the sector has struggled. However, Somalia’s strategic location and the resilient spirit of its people provide a strong foundation for recovery and growth.

As Somalia progresses towards stability, the experiences of the past offer valuable lessons that can help rejuvenate its aviation industry. This sector holds the potential to enhance national connectivity and stimulate economic development, marking a new chapter of opportunity for the nation.

https://cirmaax.com/the-rise-and-fall-of-somali-airlines