Africa must propel aviation sector to greater heights
AFRICA’S aviation industry represents a huge market that the continent’s airlines need to exploit fully.
However, over the years, the sector has competed unfavourably with other international carriers. This is because of high air transport costs, poor intra-Africa connectivity/market access limitations as well as the high costs of operations.
Last month, the African Aviation Industry Group (AAIG) held a highlevel webinar to weigh in on practical solutions to reduce the high cost of air transport operations in Africa.
The webinar, themed Achieving Affordable Air Transport Across Africa, saw stakeholders converge to determine what ails the industry as well as make recommendations to propel the industry ahead.
Aside from the adverse effect of COVID-19, the aviation industry also has been dealt a blow from high operational costs stemming from excessive and unjustified taxes, charges and other governmentimposed fees and levies on international aviation that have negative impact on the industry’s competitiveness and national economies.
This happens despite there being a clear set of guidelines by the International Civil Aviation Organisation on taxation on international air transport.
Generally, the African aviation sector faces high costs of financing, and the sector, being capital intensive, requires access to competitive financing which will contribute to reduce the operating costs to African airlines.
The risk perception is very often biased and leads to high interest rates, which generate high cost of ownership and high fares, if any financing at all. African financing institutions have a role to play in derisking the aviation sector, in order to allow more favourable terms for the sector.
Air ticket fares in Africa are certainly high compared to those of other regions for equivalent distances, yet due to the prevailing low gross domestic product in most African States, its citizens cannot afford to fly as often as citizens from other continents.
African governments need to embrace full liberalisation of the aviation sector.
African countries should sign bilateral air service agreements that will see them implement the Single African Air Transport Market (SAATM).
SAATM, a mechanism of the Yamoussoukro Decision, is an African Union flagship project to create a single unified air transport market in Africa that will advance the continent’s economic integration agenda.
The aviation sector has been ailing even prior to the onset of the COVID-19 pandemic, plagued by market restrictions and high prices, as well as a poor record of safety and security.
Aviation players should call for appropriate measures to be taken by governments to reduce the cost of aviation to make travel more affordable for African citizens.
That has the potential to reduce costs so that the air transport sector can be made accessible and more affordable to a wider demographic of travellers across Africa.
In addition, the removal of other recently introduced passenger costs, such as polymerase chain reaction test and quarantine, will no doubt accelerate traffic growth.
Gladiator