Challenges including inadequate infrastructure, unclear policies, inconsistent regulations, rising aviation taxes and other statutory charges are exacerbating poor intra-African connectivity, cautioned Airlines Association of Southern Africa’s (AASA) CEO Aaron Munetsi.
Munetsi also called for visa-free travel inside the continent.
The AASA AGM, held in Luanda, Angola, from October 5 to 8, called on regional governments to open access to their markets and allow for more routes and flights where regulatory restrictions were blocking growth.
“We have an embarrassingly low level of intra-African connectivity and it is depriving Africa, its people and its economies from rising to their full potential,” Munetsi said during his industry address.
He called on SADC governments to remove the obstacles hindering industry expansion and connectivity. “By doing so, you will enable the economies and people you serve to flourish. Never have you held in your grasp a golden opportunity to make inspired decisions with such meaningful positive consequences and impact! Do not squander it!”
As remedies, AASA proposes that authorities:
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Permit the establishment of at least 200 new intra-Africa city pairs by 2030.
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Ensure airports in the region are operationally fit-for-purpose, cost-efficient and subject to industry service level agreements.
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Apply user charges, taxes and other statutory charges on air travel that are realistic and reflect the services and facilities provided.
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Make intra-Africa travel visa-free for all passport holders.
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Provide a regulatory framework that enables the provision of competitive and affordable intra-Africa travel and air cargo services.
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Standardise training curricula, qualifications and licences so that anyone with aviation skills acquired in one African country can work anywhere on the continent.
The 2019 econometric study of Africa’s air transport sector’s contribution to GDP found that the sector supported 6,9 million jobs and contributed US$80 billion (R1,53 trillion) in GDP throughout the continent that year. It is estimated that adjustments to liberalise market access between 12 key African markets would provide 155,000 additional jobs and $1,3bn (R24,87bn) in annual GDP across those markets. The report estimated that five million travellers were potentially restricted from travelling between these markets due to unnecessary restrictions on establishing air routes.
Based on the most recent analyses, passenger traffic to, from and within SADC is about 27% lower than pre-pandemic levels. “The numbers do not signal any failure. On the contrary, recent history has shown us the pre-pandemic market was over-traded. While the pruning that occurred has been painful, in most cases, it is stimulating healthier, viable and sustainable growth with improved yields. This is visible in the rising passenger load factors coming off the back of increased growth, which is now largely achieved organically, instead of through unsustainable sub-economic fares,” explained Munetsi.
AASA addressed future challenges in the African aviation industry, including regional airlines’ vulnerability to rising living costs, oil and fuel prices, inflation and a sub-optimal business climate. However, it also pointed out potential signs of growth, with recovery in many other parts of the world manifesting as exponential arrivals in inbound, long-haul passengers, led largely by leisure travellers.
AASA recommends that governments implement more business and trade-friendly policies as well as adopt digital visas, immigration and border management systems, invest in infrastructure, and deliver reliable public infrastructure and services - all supported by clean, efficient service administration and an ethical and accountable government.
“These would lift business confidence, create more jobs and social stability. Importantly, they would lower the perceived level of risk that aircraft manufacturers, lessors, insurers, financiers and other foreign suppliers apply when doing business with African carriers. This will enable airlines, airports, air navigation service providers and others in the value chain to contain their costs and pass on the savings to customers, in turn stimulating air travel and more economic growth in a virtuous cycle,” said Munetsi.
AASA elected its chairperson and deputy chairperson for the next year on Saturday October 7. For the post of chairperson, LAM Mozambique Airlines Director-General João Po Jorge was re-elected, and SAA interim CEO, Professor John Lamola was elected Deputy Chairperson.
