This document discusses air transport in Africa. It notes that while Africa's share of the global aviation market is small, it is growing. Intra-African connectivity is poor and services are of mixed quality and competitiveness depending on the route. Services are regulated through bilateral agreements between countries. The document outlines some positive signs, like increased code-sharing between airlines and efforts to create regional carriers. However, implementation of agreements to liberalize air transport in Africa has faced challenges. Different countries have different economic policies and priorities regarding market domination, competitive advantages, and concerns over impacts of liberalization. Regional regulatory institutions have strengthened but more progress is still needed.

1. Air Transport – is it all about the
national flag?
ckunaka@worldbank.org

2. What we know
• Africa is a small proportion of global
aviation market – but is growing
• Poor intra-African air connectivity
• Mixed bag of market contestability:-
– Low competitiveness and quality of
services on some intra-African routes with
protection of the national carriers
– Yet competition on others
• High cost of air travel
• Services regulated and based on
BASAs (Bilateral Air Service
Agreements)
• Different rules and regulations
– But with some attempt at regional
harmonization (UEMOA, COMESA-SADC-
EAC, ECOWAS, ECCAS)

3. Other services
• State or state agency ownership and operation of
airports.
• Ancillary services usually concessioned, or offered
by mix of state and private operators. Freight
forwarding, logistics, etc., in the hands of private
sector.
• Regulation not independent from policymakers
and not accountable to operators.
• Generally few restrictions on foreign investment or
the formation of joint ventures/ partnerships with
locals, except for stipulations on minimum
ownership by locals

4. • Most significant policy instruments:
– 1988 - Yamoussoukro Declaration new African air transport policy focused
primarily on airline cooperation and integration
– 1999 - Yamoussoukro Decision Concerning the Liberalisation of Access to Air
Transport Markets in Africa
• Aim –gradual liberalisation of scheduled and non-scheduled intra-
Africa air transport services.
• Granting free exercise of first, second, third, fourth, and fifth freedom
rights on scheduled and non-scheduled passenger and freight air
services.
Liberalization of Air Transport Services

5. Poor implementation …
• Complete implementation initially envisaged within two
years and then revised to 2006
• But …
– Little progress though several subsequent statements
endorsing need for implementation
– Weaknesses in safety regulation in particular
• Different reasons:
– Differences in macro-economic policies and strategies
– Different levels of development and deep concerns of
individual country interests
– Fear of market domination by a few operators
– Market position / competitive advantage
– lack of knowledge on the expected impacts (numerous
studies)

6. But some encouraging signs …
• Some positive trends:
– Increased code-sharing and some efforts at creating
regional airlines
– Increased granting of 5th freedom traffic rights
– Strengthening of regional civil aviation oversight and
coordination institutions
• Who should be interested in implementation of YD?
WB study on Southern Africa – 4 groups of
countries:
– Dominating state-owned carrier
– Weak or small state-owned carrier
– Private operators only
– No local operators

7. Questions that need answers
• Aviation is the most protected of the transport
markets – but who is being protected?
• Is the fundamental problem one of lack of
economies of scale?
• Are regional approaches the answer to:
• Negotiating with third parties
• Competition regulation
• Safety regulation?

8. A few continental hubs …