FlightCom Magazine 28
development tax per passenger
- DPR Congo charges every arriving
passenger $15 to promote tourism—
rather counter-productive if you
think of it
Too many African governments tax
aviation as a luxury rather than a necessity.
We must change that perception. The value
of aviation for governments is not in the tax
receipts that can be squeezed from it. It is in
the economic growth and job creation that
aviation supports.
Another important element of
competitiveness for airlines is the ability
to reliably repatriate earnings—in line
with international treaty obligations. So
the African countries blocking over $1.0
billion of airline funds are a big concern.
Many of these countries are facing severe
economic challenges. But blocking airline
funds puts connectivity at risk. And that
invites even broader economic problems.
It is in everybody’s interest to ensure that
airlines are paid on-time, at fair exchange
rates and in full. And when problems are on
the horizon, urgent dialogue is the first step.
IATA has had success in Nigeria and Egypt
where government actions completely
cleared the backlog of funds. Some gains
have also been made in Angola. We urge
other Governments to do the same.
Infrastructure
On infrastructure, sufficient runways,
terminals, airspace capacity to meet
demand, technical and commercial service
quality aligned with airline needs and
affordability are what largely lacks in
Africa.
In Africa we have problems in two
extremes.
- At one end, when infrastructure
is built, too often we see
unnecessary and unfit
infrastructure with a hefty price
tag. The strategy to avoid this is
dialogue from the earliest stages
of any infrastructure project.
- The other extreme is where we
see the need for critical capacity
to be built. Ghana, Senegal, South
Africa have taken a collaborative
approach to infrastructure—
including pricing—that is
producing positive results for
all stakeholders. But there are
critical bottlenecks in other major
cities. If planes cannot land, the
economic benefits that they bring
will fly elsewhere.
On airport privatisation, industry
passed a resolution at the last IATA AGM
calling on governments to be cautious when
considering airport privatization, and urged
broad and rigorous consultation to make the
right decisions and ensure that they gain the
best long-term economic and social benefits.
We are putting the resolution into
practice in some countries where
governments are considering a private-
public partnership in the future development
of airports. IATA is providing guidance to
the governments, including the economic
regulation that will be needed to make them
a success for all stakeholders and provide
the connectivity that the countries need to
develop.
HARMONISED REGULATION
IATA has been promoting the concept
of Smarter Regulation. In simple terms,
Smarter Regulation seeks to solve real
problems through dialogue and partnership
between the industry and governments. It is
achieved through a transparent, objective,
and consultative process, guided by global
standards.
Global standards help us connect the
world efficiently and safely. They provide
certainty and clarity to all parties at stake.
They allow us to collectively address the
most pressing issues, which directly impact
our lives. And Smarter Regulation ensures
that all stakeholders are in the discussion,
maximizing the benefit and impact.
IATA continues its work to achieve the
universal adoption of two important global
standards:
- The Montreal Convention 1999
(MC99) establishes a modern
approach to liability and is a key
enabler of our efforts to achieve
our e-freight vision. A number
of African countries already
ratified this convention and we are
optimistic that other states will do
so soon.
- The adoption of the Montreal
Protocol 2014 (MP14) which
provides an international legal
framework for dealing with
unruly passengers is another
key focus. Africa states were
instrumental in its creation. And
8 out of 19 states that ratified it so
far are from the continent. We just
need three more states to join for
the treaty to take effect. We hope
that an African state is the one to
bring MP14 into force.
There is also a completely “made in
Africa” policy initiative which we are
wholeheartedly supporting. That’s the
African Union Single Africa Air Transport
Market (SAATM) project. It is such a pain
to get around this continent by any means
of transport including air. This inefficiency
has an economic cost. The low density
of the African intra-continental network
makes it impossible to realize the potential
benefits of a connected African economy.
Today, intra-African travel is 45% more
expensive than world averages. SAATM—if
implemented—gives Africa the potential for
economic transformation.
Twenty-eight states have signed on to
SAATM. Now they need to follow promises
with action. History has shown that
opening markets leads to rapid advances in
connectivity. In the case of Africa it must
be accompanied with a reduction in onerous
visa requirements. We are confident that the
results of 28 states that have signed on to
SAATM will make a powerful case for the
remaining 27 to come on board quickly.
WORKFORCE
Lastly, developing the human talent
that we will need to realise the potential for
Africa’s aviation future is critical. Africa
needs skilled aviation professionals in far
greater numbers than we have today and the
capacity to develop skills is limited. Even
today, finding and retaining the right talent
is a challenge. As connectivity improves
and traffic grows, this could get worse if not
addressed.
IATA has long been active in this area.
Many African aviation professionals are
trained each year, either directly by IATA,
or via the International Airline Training
Fund. A particular focus for IATA going
forward is engaging more women in the
aviation workforce. With conscious capacity
development initiatives we are confident that
Africa will have a well-trained and diverse
workforce to power the industry forward.
Kuuchi concluded by saying that “the
prospects for aviation growth are bright in
Africa. It is a region that is developing fast
and expanding its trade links to markets
around the world. Profitability will come
when airlines are freed from political
constraints, and the continent’s skies are
opened up to encourage growth. Already
safety and security challenges are been
reduced through rigorous application of
global standards.”
