PANAPRESS
Panafrican News Agency
Airlines want speedy implementation of liberalised air transport market
Nairobi, Kenya (PANA) - The African Airlines Association (AFRAA) has called on African countries to speedily implement the Single African Air Transport Market (SAATM) and address the challenges slowing the growth of the aviation sector in Africa.
Mohammed Sajid, Minister for Tourism and Air Transport, Morocco, said the liberalization of the air transport market in Africa ought to be supported by all the relevant stakeholders, so that it may translate into to accelerated development.
He said the liberalization would also enhance competitiveness and a better service offering in the sector. It would also help to remove the many restrictions confronting the sector, whether in terms of regulations, tariffs, airport services, or any other areas.
“We hope that the political will currently expressed for the establishment of a Single African Air Transport Market will allow us to fulfill our common destiny, to see all African states remove protectionist barriers, leading to air traffic growth on our continent, carried mainly by African companies, in the interest of the economies of our countries and our fellow citizens,” said AFRAA President Abdelhamid Addou, who is also CEO of Royal Air Maroc Group.
The airline chiefs called on the African States and aviation stakeholders to enhance their efforts for the implementation of the SAATM and address various challenges facing African aviation to realise its potential.
The Assembly called upon African governments to reduce taxes, charges and fees especially those related to fuel and passengers and avoid imposing airport development levies on passengers.
Additionally, the Assembly approved a resolution calling upon the Ministers responsible for civil aviation to update their counterparts in charge of taxation, in particular finance ministers, on the details and rationale behind the International Civil Aviation (ICAO) policies on taxation.
Further, airports were urged to adhere to ICAO principle of user consultation in the determination and fixing of charges and fees and to ensure that they are commensurate with the level of service delivered. African governments were also called upon to re-invest taxes relating to air travel in developing and equipping airports as recommended by ICAO.
AFRAA noted that while the African aviation industry improved its profitability, its net after tax losses still stood at US$100 million in 2018.
The member airlines reported the intercontinental passenger market segment remains the biggest with 49.5% of all passengers.
The domestic market segment represented 23.4% while the intra-Africa market represented 27%.
During the year, Africa’s traffic share was 2.2% of the global market. This figure clearly indicated that there is much room for growth. However, some positive figures have emerged with data showing that in 2017, four countries exceeded 10 million passengers: South Africa, Egypt, Morocco, Algeria, according to AFRAA.
AFRAA noted that despite the challenges faced by African airlines, including the high cost of operations in Africa and market restrictions in a number of countries, the industry has much to look forward to. The growth rates of African population and African economies are drivers of a huge traffic growth.
The AFRAA President said the 50th edition of AFRAA’s Annual General Assembly took place at a time when the African air transport sector is at the cusp of a great revolution, which will undoubtedly signal an important turning point.
-0- PANA AO/MA 7Dec2018
Mohammed Sajid, Minister for Tourism and Air Transport, Morocco, said the liberalization of the air transport market in Africa ought to be supported by all the relevant stakeholders, so that it may translate into to accelerated development.
He said the liberalization would also enhance competitiveness and a better service offering in the sector. It would also help to remove the many restrictions confronting the sector, whether in terms of regulations, tariffs, airport services, or any other areas.
“We hope that the political will currently expressed for the establishment of a Single African Air Transport Market will allow us to fulfill our common destiny, to see all African states remove protectionist barriers, leading to air traffic growth on our continent, carried mainly by African companies, in the interest of the economies of our countries and our fellow citizens,” said AFRAA President Abdelhamid Addou, who is also CEO of Royal Air Maroc Group.
The airline chiefs called on the African States and aviation stakeholders to enhance their efforts for the implementation of the SAATM and address various challenges facing African aviation to realise its potential.
The Assembly called upon African governments to reduce taxes, charges and fees especially those related to fuel and passengers and avoid imposing airport development levies on passengers.
Additionally, the Assembly approved a resolution calling upon the Ministers responsible for civil aviation to update their counterparts in charge of taxation, in particular finance ministers, on the details and rationale behind the International Civil Aviation (ICAO) policies on taxation.
Further, airports were urged to adhere to ICAO principle of user consultation in the determination and fixing of charges and fees and to ensure that they are commensurate with the level of service delivered. African governments were also called upon to re-invest taxes relating to air travel in developing and equipping airports as recommended by ICAO.
AFRAA noted that while the African aviation industry improved its profitability, its net after tax losses still stood at US$100 million in 2018.
The member airlines reported the intercontinental passenger market segment remains the biggest with 49.5% of all passengers.
The domestic market segment represented 23.4% while the intra-Africa market represented 27%.
During the year, Africa’s traffic share was 2.2% of the global market. This figure clearly indicated that there is much room for growth. However, some positive figures have emerged with data showing that in 2017, four countries exceeded 10 million passengers: South Africa, Egypt, Morocco, Algeria, according to AFRAA.
AFRAA noted that despite the challenges faced by African airlines, including the high cost of operations in Africa and market restrictions in a number of countries, the industry has much to look forward to. The growth rates of African population and African economies are drivers of a huge traffic growth.
The AFRAA President said the 50th edition of AFRAA’s Annual General Assembly took place at a time when the African air transport sector is at the cusp of a great revolution, which will undoubtedly signal an important turning point.
-0- PANA AO/MA 7Dec2018
