Impact of Liberalization Fidelis Onyeyiri of...5. Benefits of full implementation of YD Several...

Impact of Liberalization

Fidelis OnyeyiriTechnical Advisor

African Civil AviationCommission

Impact of liberalization of Air Transport and Air Service Agreements on Sustainability of the ATM industry in Africa

Content

Air Transport in AfricaAir Transport LiberalizationYamoussoukro Decision YDATM in AfricaBenefits of full implementation of YD Liberalization Impact on ATM Industry in Africa


1. Air Transport in Africa

The air Transport industry has become the engine of most developed economies in the world. This industry plays a major role in the world economic activities and remains one of the fastest growing sectors in the world.


A study by oxford Economics and Air Transport Action Group (ATAG) reveals that thirty five per cent (35%) of the world trade by value is carried by air transport with about 48 million tones of freight in 2010. About 58.1 million jobs worldwide are supported by aviation. Its global economic impact including direct, indirect, induced and catalytic impact on tourism is about 2.4 trillion.


Over the last decade, the air transport industry has undergonemajor changes globally in terms of technology, Regulation andmode of airline operations.Through the years, every aspect of the industry has been highlyregulated in terms of safety, security and other aspects ofairline operations including routes, fare charged, frequenciesand capacity.


Yet Air transport remains one of the main drivers of economicdevelopment, integration and globalization. This is relevant toAfrica where it is an essential component for the freemovement of persons, goods and services in a regionalenvironment of weak ports, roads and rail network and where,when they do exist, access is limited and fluctuates accordingto the vagaries of the weather over a considerable portion ofthe year.


2. Air Transport Liberalization / Air Service Agreement

Through the years, every aspect of the industry has been highly regulated in terms of safety, security and other aspects of airline operations including routes, fares charged, frequencies and capacity. The United States of America (USA) first began the economic deregulation of various aspects of its domestic aviation services such as fares, routes, capacity and frequencies in 1978.


From 1992, the US further adopted the “open skies” policy in its bilateral air services agreements with other countries. In the same vein, during the same period, the European Union (EU) through the framework of a Single European Aviation Market policy, deregulated aviation markets in Europe. Carriers from within the EU were free to operate within the EU market without the restriction on fares, frequencies and capacity.


This policy allowed for the removal of airline ownershiprestrictions for EU citizens and also supported blocknegotiation of bilateral air services agreements with othercountries.The Multilateral Agreement on Liberalisation of InternationalAir Transportation (MALIAT) originally signed by New Zealand,Chile, Singapore, Brunei Darussalam and the USA is anothergood example of liberalisation of air transportation.


The MALIAT allowed signatories to the Agreement, unlimitedthird, fourth, fifth and sixth freedom traffic rights among theairlines of those States. The Agreement also grantedunlimited seventh freedom traffic rights for cargo operationsonly.


3. Yamoussoukro Decision

In Africa, the concept of liberalization started in 1988 whenAfrican Ministers responsible for civil aviation met inYamoussoukro, Republic of Cote d’Ivoire from 6 – 7 October,1988. The convention came up with the YamoussoukroDeclaration (1988) which addressed the issue of integration ofairlines, flexibility in grant of traffic rights, costs and tariffs.


After ten years, there was no visible implementation of theDeclaration. Experts argued that the Declaration lackedeffect since there was no legal framework to make it bindingon its member states. This led to the adoption of theYamoussoukro Decision (YD) in 1999.


The provisions of the YD fully liberalised intra African airtransport services in terms of market access (3rd, 4th and 5th

freedom traffic rights), frequencies, fares and capacity. TheAgreement also provides for safety standards, eligibilitycriteria, dispute resolution and fair competition.


The success of the implementation of the YD at thecontinental level still remains a challenge, which has robbedthe continent of the enormous benefits that can be derivedfrom liberalisation.


4. ATM in Africa

The Pursuit of liberalization of Air Transport in Africa has equallyrecognised the need for a seamless Airspace that is Safe, Secure andCost effective.Hence the need to build the oversight capabilities of national CivilAviation Authorities in the AFI Region should be given high priorityin the area of provision of air navigation services to ensure thesafety, efficiency and regularity of air navigation services.


In this regard, the cooperation between Air NavigationServices Providers in Africa could be an efficient solution toenhance air navigation services oversight in order tocontribute to achieving a homogeneous and seamless AirTraffic Management (ATM) system in the AFI airspace.


It is worthy to note that the regional cooperation frameworkbetween the African ANSPs will foster the creation of asingle and homogeneous and seamless airspace in which therules and procedures for air navigation services oversightwould be harmonized.


As such, the level of implementation of ICAO Standards andRecommended Practices (SARPs) could be enhanced in thearea of air navigation services in Africa and it would be anideal mechanism for exchanges of experiences,benchmarking and assistance among ANSPs for the provisionof secure and efficient air navigation services in Africa.


AFCAC has been in the vanguard of cooperation betweenCAAs and ANSPs.AFCAC has already initiated some actions to fulfill itsmandate as a major actor in the harmonization of rules andregulations in the civil aviation fields, such as the elaborationof the AFCAC Strategic Plan 2014-2016, with strategies toassist AFI States in the establishment of a common andseamless ATM Management System through theimplementation of the ASBU Block 0 modules.


5. Benefits of full implementation of YD

Several studies by various researchers and experts haveindicated that the benefits of full implementation of theYamoussoukro Decision will be of immense benefits to thetravelling public, air carriers, airports, other allied serviceproviders, the economy of member State and continent as awhole..


5. Benefits of full implementation of YD

IATA published a report in August 2014 setting out the considerablesocial and economic benefits of intra-African air serviceliberalization.The report outlines the benefits that would accrue if 12 nationswere to fully implement the 1999 Yamoussoukro Decision (YD). The12 nations in the report are: Algeria, Angola, Egypt, Ethiopia, Ghana,Kenya, Namibia, Nigeria, Senegal, South Africa, Tunisia and Uganda.


This report demonstrates beyond doubt the tremendouspotential of African aviation if the shackles are taken off. Theadditional services generated by liberalization between justthese 12 key markets will provide an extra 155,000 jobs and$1.3 billion in annual GDP. A potential five million passengersa year are being denied the chance to travel between thesemarkets because of unnecessary restrictions on establishingair routes.


Furthermore, employment and economic growth are justthe tip of the iceberg in terms of the benefits of connectivity.Aviation already supports 6.9 million jobs and more than$80 billion in GDP across Africa. The research demonstratesthat liberalization will create opportunities for furthersignificant employment growth and economic development.


6. Liberalization Impact on ATM Industry in Africa

With air traffic projected to double in the next 15 years,current and emerging safety risks must be addressedproactively to ensure that this significant capacity expansion ifcarefully managed and supported through strategic regulationand infrastructure developments.


6. Liberalization Impact on ATM Industry in Africa

It is therefore imperative that African States remain focusedon establishing, updating and addressing their safetypriorities as they continue to experience expansion of theirair transport sectors, due to YD implementation.


To ensure that continuous safety improvement andharmonized global air navigation modernization advancehand-in hand, African States` aviation safety planning isessential to meet global aspiration. This will also facilitatethe safe and sustained growth, increased efficiency andresponsible environmental stewardship that societies andeconomies globally expect and demand of Governmentaviation agencies and industry.


The Global Aviation Safety Plan (GASP) has undergone significantchange, driven mainly by its strengthened role as high-level policy,planning and implementation document guiding complementaryand sector-wide air transport progress in conjunction with the ICAOGlobal Air Navigation Plan (GANP), the Global Plans define themeans and targets by which ICAO, States and aviation stakeholderscan participate and efficiently manage air traffic growth whileproactively maintaining or increasing safety.


Air Traffic Management (ATM) is the dynamic, integratedmanagement of air traffic and airspace Safety, economicallyand efficiently through the provision of facilities andseamless services in collaboration with all parties.


The projected traffic increase will further task the ATM aseach element of the ATM systems, wherever implemented(aircraft, ground, space, etc…) will be subject to specificsafety analysis, as an individual element and as a componentof the larger integrated systems. The implementation of anyelement of the system will be subject to appropriate safetyassurance processes.


The need therefore to expedite the full implementation ofPBN regulatory oversight by making full use of all availablerecourses to improve the effectiveness of their PBNoversight function and proceed with the implementation ofAssembly Resolution A37-11 – PBN global goals withemphasis on areas where maximum safety benefits can begained.


As a follow-up to assist African States in their responsibilities andduties related to the implementation of PBN, ICAO established theAfrican Flight Procedure Programme (AFPP) Office in Dakar, Senegalto guide, assist and train African States on the implementation ofPBN procedures, airspace design and operations approvals. AFCAC isa fill member of the AFPP Steering Committee. AFCAC was thusadvised to assist the AFPP to ensure the participation of its memberStates in the activities of the AFPP Office.


ConclusionAFCAC as a specialised Agency of the African Union, has beenassisting States with safety deficiencies and Air NavigationServices has now been included in our programme. We haveorganised a seminar/workshop on Performance BasedNavigation (PBN) from 24-26 June 2014 in collaboration withICAO, Eurocontrol and Airbus Industry. AFCAC is also planning aSeminar/Workshop on ASBU for last quarter of the year 2015.


This was to assist States in the preparation of their National PBN Implementation Plan. It is also evident from the above that sustaining ATM industry in Africa cannot be overemphasized. AFCAC will continue in its pursuit to encourage cooperation between ANSPs in Africa.

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