Africa’s single aviation market: The progress so far

Abstract

To promote the development of air transport at the continental level, several policies were introduced, leading to the Yamoussoukro Decision (YD) in late 1999, which had the liberalisation of the intra-African aviation spaces as its main objective. Even though notable progress has been achieved towards more market-oriented aviation policies, at the panAfrican level some markets are still restrictive and inconsistent with the YD, particularly with respect to the granting of 5th freedom rights. This paper aims to examine recent developments in the aviation sector in Africa, with a focus on the implementation of the YD. The obstacles to liberalisation are discussed and several measures for facilitating Africa's move towards multilateral open skies are investigated. These include, among others, a greater collaboration and co-operation among African airlines, as well as between African airlines and foreign ones; redefinition of the role and responsibilities of different institutions which are instrumental in implementing the YD and some further issues such as ownership guidelines.

Why Are So Many African Companies Uncompetitive on the Global Stage? Insights from the Global Airline Industry

“…The external factors include industry-based and institution-based factors such as competition and regulation. (Njoya, 2015).…”

“…Despite the potential benefits that be accrued from liberalisation and decades having passed, coupled with multiple changes in governments and a shift towards more democratic regimes, the Yamoussoukro Decision remains a working project with no clear plan for full implementation (Njoya, 2015). Although there is an African Union Common African Civil Aviation Policy which encompasses liberalisation, many countries still associate civil aviation with national sovereignty and believe that liberalisation would lead to loss of control (Clark, 2014;Njoya, 2015).…”

“…Although there is an African Union Common African Civil Aviation Policy which encompasses liberalisation, many countries still associate civil aviation with national sovereignty and believe that liberalisation would lead to loss of control (Clark, 2014;Njoya, 2015). Another barrier has been the historical support and protection of flag carriers, which not only distort competition but also hamper the emergence of new airlines (see Clark, 2014;Njoya, 2015). As Rivers (2016: 48-49) In a bygone era, when colonial rule was still in existence, identifying a consensus for a common aviation area failed to materialise due to the conflicting interests of the colonial powers.…”

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“…The fact that the US domestic air market went through a rapid "big bang" approach to deregulation in 1978 ( [35], p. 229), while Europe adopted a more gradual process of liberalization [20], goes some way to demonstrating the cross-border challenges that multilateral air market initiatives face [28,29]. However, although Europe's liberalization journey reflects the difficulties associated with getting multiple countries to all agree, it still achieved what all other regions have be unable to do so to date [12,29]. Many argue that without the supranational power exercised by the EC, Europe's single air market would have been far less ambitious or extensive in the end [12,15].…”

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“…Despite the great potential and the rapid growth of air transport, Africa's share in the global air transport industry stills insignificant. The state of air transport industry in Africa is about 2.85% and 2% of global revenue passenger kilometer and global airport income respectively, and about 1% of global airlines' cargo (Njoya, 2016). Furthermore, only around 20% of intercontinental traffic between Africa and the rest of the world is controlled by African airlines.…”