Air transport liberalisation in Africa

Question 1

What are the benefits of liberalisation?

Answer 1

1. New routes, increased frequencies, shorter travel times and lower fares - leads to -
   2.. Air traffic growth - leads to -
2. Increased trade, tourism, investment - leads to
3. Enhances productivity, economic growth, employment

Question 2

What are the implications of liberalisation for air service and carriers?

Answer 2

Carriers:

1. New routes and growing operations for carriers
2. Higher frequencies
3. loss of market share (but still experience growth in traffic volumes)
4. Enhance profitability by expanding into new markets and accessing more investment
5. Depends on quality of management though

Question 3

Describe the Yamoussoukro Declaration and Decision origins

Answer 3

Declaration - An African civil aviation policy geared towards a comprehensive reform of the air transport industry and the unification of the fragmented African air transport market
Decision - Liberalisation of Intra-Africa air transport markets with minimum government intervention

Question 4

What was the decision intended to do?

Answer 4

Intended to remove all restrictions on:
1. Traffic rights including fifth freedom traffic
2. Capacity between city pairs
3. Non-regulation of tariffs
4. Multiple designation and frequencies

Question 5

What did participants of YD have to focus on?

Answer 5

1. Strengthening safety and security oversight on the continent
2. Promote climate of cooperation
3. Initiate emergence of strong regional airlines
4. Promote the development of competition regulations and dispute resolution mechanisms
5. Establish YD agency to execute the agenda

Question 6

What are the four issues that have prevented the potential of the YD?

Answer 6

1. Protectionist policies - desire for national airlines and absence of mechanism to form jointly owned airlines
2. Discriminatory practices - refusal to open skies to other Africans but allows European carriers; give less freedom rights to African carriers than European carriers
3. Restrictions by regulators outside the continent - airline safety bans
4. Non-physical barriers preventing efficient use of infrastructure - documentation, Visa’s

Question 7

What are some of the actual significant impacts of the YD?

Answer 7

1. Strengthening of a few African carriers (Kenya Airways, Ethiopian Airways)
2. Development of fifth-freedom traffic and sixth freedom traffic