Page 58 - World Airnews Magazine January 2020 Edition
P. 58

AFRICA


                                  AIR TRANSPORT IN AFRICA



                                      African Airlines Association secretary general Abderahmane
                                              Berthé provided this overview of air transport in Africa




              he African continent is home to

        T17% of the global populati on but


        its air traffic accounts for less than 3% of
        global traffic.


         African airlines lose an average of (US)
        $1.54 per passenger carried while globally
        airlines earn (US) $6.12 per passenger carried.
         Today, in several parts of the world you
        can fly for 1.5 hours for less than $100

        while in Africa total taxes on the ticket are

        often higher than $100.

         Passenger traffic between Africa and the


        rest of the world is dominated by non-Afri-
        can carriers often charging exorbitant fares.

         Out of 55 African states, only 8 have

        direct flights to more than 20 other African

        states. Quite often, the passenger is obliged
        to transit through one or several stopovers.
         This data should challenge all stake-
        holders to commit to creating a conducive

        environment for the development of air


        traffic in Africa.
        MAIN CHALLENGES FOR AFRICAN
        AIRLINES
        The air transport industry is facing a host of
        challenges:
         •  High operating costs due to high

            taxes on ground and in air
         •  Inadequate infrastructure
         •  High price of fuel compared to the
            rest of the world
         •  High level of taxes on airlines and
            passengers



         •  Restrictions on traffic rights

         •  Restrictions on visas to passengers  The high economic growth rate, the   The objective of SAATM is to remove all



         Fleet financing is also a critical challenge   young African population and the emer-  restrictions on traffic rights, frequencies,




        for African airlines which encounter difficul-  gence of a middle class are all great oppor-  capacity and tariffs.




        ties in accessing funding due to perceived   tunities to be grasped.    Expected and confirmed benefits in sev-





        risk by international financial institutions.                          eral other regions of the world are: better



        African development banks should address   MARKET ACCESS               connectivity, decrease of travel time and




        this problem by putting in place adequate   The Single African Air Transport Market   reduction of air fares to make air transport

        funding mechanisms for African airlines.  (SAATM) project was launched in January   affordable for as many Africans as possible.

         Nevertheless, alongside the challenges   2018 in Addis Ababa, Ethiopia. Since then,    Some Member States are still reticent


        there are opportunities and all the stake-  a total of 28 States have signed the solemn   and have not yet signed SAATM mainly for

        holders should work towards harnessing   commitment. These signatory States   two (2) reasons:

        them for African aviation to prosper:  represent 51% of AU member states, 61%   •  The fear for their national airlines to


         •  The Single African Air Transport Mar-  of the population and 65% of the gross   be driven out of business by the com-


            ket (SAATM) to improve connectivity  domestic product (GDP).           petition from larger African carriers


         •  The African Continental Free Trade   10 of the 28 signatory States have already   led some States to protecting their


            Area (AfCFTA) to boost intra African   fully implemented the immediate measures   national flag carriers.


            trade                          recommended by AFCAC (African Civil Avi-  •  The regulatory framework of which

         •  The Free movement protocol for   ation Commission) in order to achieve the   a key component is the mechanism

            people, goods, capital and services to   realization of SAATM.         for settlement of disputes having

            facilitate investment            18 States have also signed a Memorandum   not been finalized, some States are



         These various projects initiated by the Af-  of implementation (MoI) with a view to har-  skeptical about SAATM immediate


        rican Union should contribute to improving   monizing their bilateral agreements with the   operational capability.
        the fortunes of airlines.          provisions of Yamoussoukro Decision.  At AFRAA, we believe that although
                                                  World Airnews | January 2020
                                                         — 56 —
   53   54   55   56   57   58   59   60   61   62   63