Africa Aviation: Time for genuine open skies

Regulatory challenges

The International Air Transport Association (IATA) is currently campaigning for a halt to the introduction of any new taxes on the aviation industry in Africa. In a statement to the African Union and African governments, it argued that planned taxes “can be likened to killing the goose that lays the golden eggs. Eight million jobs in Africa depend on aviation, an industry that also delivers an $80.5bn contribution to the African economy. Aviation brings business, including tourism to the continent. And the same aircraft carry African goods to global markets.”

IATA director general and chief executive Tony Tyler said that making tourism and trade more costly may generate short-term gains for the AU treasury, “but experience has shown that such taxes ultimately result in a vicious downward spiral ending in long-term pain across the economy”. 

He added: “Just look at the experience of Belgium, Ireland and the Netherlands, to name only a few, that have tried to go down this road in the past and that have been forced to reverse themselves once they saw the impact of such taxes on their economies and societies.”

The Nigerian Aviation Handling Company is also concerned about plans by Abuja to merge several state-owned aviation companies within a single organisation. 

The company’s chairman, Mallam Suleiman Yahyah, says: “As we have profusely stated in our various public engagements in the media, petitions and appeals to pertinent authorities, this proposed merger grossly violates the principles, letters and spirits of standards as prescribed by International Civil Aviation Organisation (ICAO) conventions and protocols. 

“It is logical to perceive that if a regulatory agency like NCAA and a service provider body like NAMA are bundled into a single organisation, the aviation industry would most likely become a bedlam of confusion.” 

On a more positive note, the Nigerian Aviation Handling Company has proposed the creation of a free trade zone at Murtala Muhammed Airport in Lagos. Yahyah argues that as much investment as possible should be made into the airport in response to the growing importance of other hub airports in West Africa. Several governments are currently in the process of redrafting their aviation legislation.

This can be a complex matter at the best of times, as many countries have state-owned airlines and there is a mesh of reciprocal access agreements across Africa in the absence of an open skies policy. The Kenyan government hopes to put a new aviation law before parliament in July that will improve security and safety in the sector, including the introduction of security personnel on board aircraft. 

In addition, IATA will enforce new international safety guidelines from 1^st July and is offering in-house training to seven African airlines in order to bring them up to scratch. The International Civil Aviation Organisation’s deputy regional director, Prosper Minto’o, said: “These initiatives will assist member states in understanding which areas require special attention to effectively improve aviation performance. This will fundamentally contribute to the sustainable growth of a sound and economically viable international civil aviation system.”

The industry is keen to promote safety because deaths in air accidents attract so much worse publicity than the equivalent number of fatalities in car crashes. It is also keen to point out that air travel is far safer than road travel. The continent’s air accident rate fell from 14.80 per million flights in 2012 to 7.45 accidents per million last year, although it will take another year or two of improved results to confirm this trend.

Almost all African governments have sought to restrict competition in order to protect domestic airlines, yet the volume of air travel remains stymied by the lack of competition and high prices. At the same time, despite the success of Kenya Airways, Ethiopian and SAA, African airlines account for just 20% of all air traffic to and from Africa, leaving the industry dominated by non-African operators, according to figures from the African Airlines Association.