Harnessing the benefits of single air market in Africa | Infrastructure news

The air transport industry, which is one of the most profitable sectors, had an estimated turnover of more than US$3,800 billion and created more than 28 million direct or indirect jobs in 2005.

However, Africa’s share in the global air transport industry remains insignificant. In fact, out of more than 2.5 billion passengers carried in 2007 by 190 Member States of the International Civil Aviation Organisation (ICAO), Africa accounted for only five percent of the traffic.

Two-thirds of the five percent was handled by airlines that are not members of the African Airlines Association (AFRAA). In 2004, 42 members of AFRAA carried 36 million passengers, representing a 12 percent increase compared to 2003, while European airlines (Air France, KLM, British Airways, Alitalia, Iberia, Lufthansa, SN Brussels and Swiss Air) transported from and to Africa 72 million passengers, that is two-third of the total air traffic (108 million passengers).

But the problem of air connectivity in Africa was already seen when its Aviation ministers converged on Cote d’Ivoire to make a declaration, the YD, that air transport on the continent be liberalised and airspace limitations from one country to another be eliminated to pave the way for economic growth and seamless travel.

Since the agreement was signed in 1999 in Yamoussoukro, lack of political will in African leaders has made the agreement less unsuccessful. It is disappointing that several years after an agreement was signed by those ministers, it is yet to be fully implemented.

Today, in African countries, there are varying rules and regulations based on bilateral air service agreements, differing standards of service and consumer rights among others.

The consequences are apparent. There is poor connectivity; reduced competitiveness and quality of services on intra-African routes; high cost of air travel; insignificant impact on socio-economic development of the majority of African populations.

David Kajange of the African Union said it was important for Africa to create a single market and air space to be able to benefit from economies of scale as well as achieve cost-effective management of its airspace, adding that the YD offers the best opportunity to the continent to consolidate its air transport industry and strengthen its operations, safety, security and protection of the environment.

“Development of air transport in Africa has to be closely linked with other socio-economic sectors and, especially, the infrastructure sectors in an integrated manner; given the deep international character of air transport, cooperation with partners is essential in order to ensure mutually beneficial market relations and mobilisation of the necessary support of key partners such as the EU.

However, he pointed out that the challenges of implementing the acclaimed agreement poses a serious problem to development of the air transport sector on the continent.

He said differences in macro-economic policies and strategies; different levels of development and deep concerns of individual country/state interests had hampered the leaders from fully implementing it.

According to him, “Fear of the unknown, lack of knowledge on the actual/expected benefits and/or negative effects of liberalisation and market position/ competitive advantage had also contributed to the issue.”

Roberto Gonzalez, president of the International Civil Aviation Organisation (ICAO), the global aviation regulatory body, admitted that the answer to African airlines’ stunted growth was for them to liberalise.

He explained that since that time, there has been an acceleration of liberalisation in many parts of the world, adding that as of today, “more than 142 open skies bilateral agreements have been concluded involving 91 countries and territories”

He added: “Still, Africa lags behind and must expedite the full implementation of the Yamoussoukro Declaration. I must say that the consistent and enthusiastic cooperation among member states that we have witnessed recently suggests that a liberalised aviation environment can emerge on the continent through cooperation.”

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