African heads of state and government passed a resolution on the establishment of a single air transport market in Africa by 2017 at the 24th Ordinary Session of the African Union held in Addis Ababa from January 30 to 31 at the headquarters of the union.
In 1999 African ministers responsible for civil aviation gathered in the Ivorian city of Yamoussoukro and adopted the Yamousoukro Declaration (YD) that calls for the liberalization of African skies for African airlines. The declaration is aimed at establishing a single African air transport market by avoiding market restrictions imposed by bilateral air service agreements. The decision was adopted by African heads of states in 2000 with a two-year grace period. However, to-date African states have not been able to fully implement the declaration.
African skies are not open to African airlines. The African air transport market is still restricted by protectionist bilateral air service agreements. This has enabled non-African carriers to dominate African skies. Currently, non-African carriers carry 80 percent of the passenger traffic on the intra-African routes.
The African Airlines Association (AFRAA) has been working with the African Union and the African Civil Aviation Commission on market liberalization. Ethiopian Airlines has also been closely working with AFRAA on the possibility that African states could fully implement the YD.
On January 30, the AU passed a decision on the immediate implementation of the YD and the creation of a single African market by 2017. The resolution expressed “commitment to the immediate implementation of the Yamoussoukro Decision towards the establishment of a single African air transport market and open our air transport market to each other;” It also entrusted “the AU Commission to coordinate and facilitate the process of operationalization of the Single Air Transport Market in Africa; and to report to the Conference of Ministers of Transport.”
The governments of Benin, Cape Verde, Congo Republic, Côte d’Ivoire, Egypt, Ethiopia, Kenya, Nigeria, Rwanda, South Africa and Zimbabwe have committed themselves to the immediate implementation of the YD to the establishment of a single African Air Transport market by 2017. According to the AU, these countries will constitute as a working group at ministerial level in order to achieve this goal and it will remain open to those that will join later.
The implementation of the YD has been a very controversial issue. While some countries like Ethiopia, Kenya and South Africa who have strong national carriers have been strongly advocating the importance of the YD, others with weak airlines expressed their fear that their airlines will be crushed by the strong African carriers. However, the sad truth is that these small African carriers are being swallowed by mega non-African carriers, especially those that are coming from the Middle East.
At AFRAA’s 46th annual general assembly held last November in Algiers, Algeria, the Ethiopian Airlines Group CEO Tewolde Gebremariam said African states have been very slow in implementing the YD. “African states often speak of African economies integration but ironically most African states deny traffic rights to African airlines and grant it to non-African carriers, mostly to Gulf carriers,” Tewolde said. “This has to change,” he added.
“Africa must become one single unified market without any restriction for African airlines. The continued fragmentation of our skies is only benefiting foreign carriers and will lead to our certain demise. African governments must act now and fast to unify African skies, which would also give great impetus to the continent’s economic integration,” Tewolde added.
A recent study commissioned by IATA lists the benefits African states could reap by liberating their air transport market. The study was conducted by an independent consulting firm, InterVISTAS, on 12 countries. The study indicates that the 12 countries could generate additional 1.3 billion dollars to their GDP and create extra 155,000 jobs by liberalizing their markets. The study indicates that Ethiopia could open additional 14,800 jobs and generate extra 59.8 million dollars GDP.
[TheReporterEthiopia]