1. Air Transport – is it all about the
national flag?
ckunaka@worldbank.org

2. What we know
• Africa is a small proportion of global
aviation market – but is growing
• Poor intra-African air connectivity
• Mixed bag of market contestability:-
– Low competitiveness and quality of
services on some intra-African routes with
protection of the national carriers
– Yet competition on others
• High cost of air travel
• Services regulated and based on
BASAs (Bilateral Air Service
Agreements)
• Different rules and regulations
– But with some attempt at regional
harmonization (UEMOA, COMESA-SADC-
EAC, ECOWAS, ECCAS)

3. Other services
• State or state agency ownership and operation of
airports.
• Ancillary services usually concessioned, or offered
by mix of state and private operators. Freight
forwarding, logistics, etc., in the hands of private
sector.
• Regulation not independent from policymakers
and not accountable to operators.
• Generally few restrictions on foreign investment or
the formation of joint ventures/ partnerships with
locals, except for stipulations on minimum
ownership by locals

4. • Most significant policy instruments:
– 1988 - Yamoussoukro Declaration new African air transport policy focused
primarily on airline cooperation and integration
– 1999 - Yamoussoukro Decision Concerning the Liberalisation of Access to Air
Transport Markets in Africa
• Aim –gradual liberalisation of scheduled and non-scheduled intra-
Africa air transport services.
• Granting free exercise of first, second, third, fourth, and fifth freedom
rights on scheduled and non-scheduled passenger and freight air
services.
Liberalization of Air Transport Services

5. Poor implementation …
• Complete implementation initially envisaged within two
years and then revised to 2006
• But …
– Little progress though several subsequent statements
endorsing need for implementation
– Weaknesses in safety regulation in particular
• Different reasons:
– Differences in macro-economic policies and strategies
– Different levels of development and deep concerns of
individual country interests
– Fear of market domination by a few operators
– Market position / competitive advantage
– lack of knowledge on the expected impacts (numerous
studies)

6. But some encouraging signs …
• Some positive trends:
– Increased code-sharing and some efforts at creating
regional airlines
– Increased granting of 5th freedom traffic rights
– Strengthening of regional civil aviation oversight and
coordination institutions
• Who should be interested in implementation of YD?
WB study on Southern Africa – 4 groups of
countries:
– Dominating state-owned carrier
– Weak or small state-owned carrier
– Private operators only
– No local operators

7. Questions that need answers
• Aviation is the most protected of the transport
markets – but who is being protected?
• Is the fundamental problem one of lack of
economies of scale?
• Are regional approaches the answer to:
• Negotiating with third parties
• Competition regulation
• Safety regulation?

8. A few continental hubs …