53This dates from 1988, when some African countries
agreed to liberalise the aviation sector, and was formalised
in the 1999 Yamoussoukro Decision, in which 44 states
agreed to start liberalising air transport, but it was not
implemented until 2018.
Still, research from Deloitte published in May last year,
Single African Air Transport Market: Is Africa Ready?,
argues that low commitment from African Union member
states is a likely result of the treaty’s lack of a proper
implementation framework. Deloitte says that Nigeria has
backtracked on the agreement after signing, complaining
that Ethiopian Airlines makes 45 per cent of its income
from Nigeria, yet has not employed Nigerians as air crew
or ground technical staff.
According to Deloitte, a lack of a proper consumer
protection mechanism will reduce the effectiveness of
SAATM as passengers do not have a platform for seeking
redress. All signatory member states will need to “adopt
and enforce harmonised consumer protection regulations
to give consumers across the continent a level playing field.”
Only then will SAATM be able to achieve its objectives.
“Making it a reality requires governments to move
promptly in creating the enabling regulatory framework
and for the airlines currently sheltering behind their
protection to become competitive,” Kaczynska says.POTENTIAL FOR SUCCESS
Deloitte points out that Africa is home to 16 per cent
of the world’s population and yet only has a share of 2.2
per cent of global air passenger traffic. Can such a glaring
disparity be sustained? “Africa has the necessary elements
to become an aviation success story – a growing middle
class, favourable demographics and a geography that
necessitates travel by air,” Kaczynska says. “However, many
of the region’s governments are not treating air carriers as
partners that drive social and economic development.”
Dichter at McKinsey believes that the African business
air travel market is “starting to mature” and that a quality
short- to medium-haul airline can emerge, provided there
develops a hub that can generate sufficient passenger scale.
There are signs of such an airline emerging – in December
last year Green Africa Airways, a Lagos start-up, placed
an order for up to 100 B737 Max 8 aircraft. The list price
of US$11.7 billion is the largest order ever placed by an
African aviation firm. The plan is to attack the Nigerian
market and then expand into African routes.BTADVERTISEMENT FEATURE
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