Decrepit infrastructure, high taxes, charges bane of Africa’s aviation growth-IATA

• Decries region’s poor connectivity
• Airlines to pay extra $222 billion for fuel this year
• bemoans Africa’s 1.9% passenger, cargo traffic despite over 1 billion population

The International Air Transport Association (IATA) has expressed the concern that despite Africa’s burgeoning population of over 1 billion people, the continent accounts for just 1.9% of global passenger and cargo traffic.

This is coming as the clearing house for over 200 global airlines attributed the bane of the continent’s aviation industry to poor or inadequate infrastructure, high taxes, and charges resulting in sub-standard passenger service.

The group advised that aviation and tourism should never be treated as easy targets for collecting taxes and charges without reinvesting in improved infrastructure, training, or service delivery, explaining that some of the most expensive airports in Africa are also ones with the lowest service levels and infrastructure. He stated that this disparity between cost and quality is unacceptable.

The downturn and abysmal passenger and cargo traffic were attributed largely to the dearth of intra-African connectivity and barriers to market access.

IATA’s Regional Vice President for Africa and the Middle East, Kamil Alawadhi, in his address to the 2022 General Assembly of the African Airlines Association (AFRAA) taking place in Dakar, Senegal, said it is a reminder of how much work everyone has to do, adding that there is the urgency with which they need to accomplish it.

He further stated that the latest African Civil Aviation Commission (AFCAC) Pilot Implementation Programme (PIP) was a welcome initiative, stressing that if it enjoys sufficient buy-in and fair play between its 17 participating countries, then it should be a powerful demonstration to the continent’s other 38 nations, of the commercial, economic and social benefits that are waiting.

His words, “But let us not kid ourselves and get carried away patting ourselves on our backs.  The PIP is a step towards the Single Africa Air Transport Market (SAATM).   Fifth freedom traffic rights are the most visible and attractive component of SAATM, but the devil is in the detail”.

“Not only do we require a common understanding of what these market freedoms are, but also of how they are to be applied and administered.   It requires just as much commitment to removing other protectionist instruments such as inconsistent and differential charges as well as administrative obstacles that run counter to the spirit and intentions of SAATM”.

The IATA chief noted that if they zoom out and consider inter-continental markets, it is would be distressing to see certain African carriers failing to operate key routes on which they are the solely designated airline for their countries.

Despite the reciprocal countries’ carriers expanding their operations, he said they can only do so up to the limits set out in the bilateral, lamenting that this is leaving many markets under-served.

His words, “By choking capacity in this way, commercial opportunities are being squandered, and slowing the recovery of lucrative long-haul foreign source-markets for tourism and trade.  In turn, this is delaying the delivery of socio-economic benefits and attainment of many of the UN Sustainable Development Goals in the region.”

“The solution is not necessarily to start or prop-up unviable airlines.  It is to reform the current regulatory regime and replace it with one that is fit for purpose.

On decrepit infrastructure, taxes, and high charges, Alawadhi disclosed that some of Africa’s largest airports have recently completed, or are currently undertaking major expansion programmes.

“However, from the airlines’ perspective, such projects should be concluded collaboratively between airports and airlines.  They require demonstrated cost-benefit analyses and robust interrogation of asset efficiencies as these infrastructure plans will impact on future user charges”.

“Every increase deters increasingly cost-sensitive customers, resulting in fewer travellers and even less revenue, not just for airlines, but for all stakeholders across the value chain including airports, ground handlers, suppliers, and air navigation services. Ultimately, they set back economic growth and curtail opportunities to create and support jobs and livelihoods”.

On rising costs, Alawahdi said although oil prices have retreated from mid-year peaks, the average price of jet fuel so far this year has been $138.8 a barrel.

He stated that this means airlines would collectively pay an extra $222 billion for fuel this year compared with 2021, adding that fuel accounts for 30% of airline costs.

He warned that the continent’s carriers should not compromise on safety, stressing that in 2021, African airlines on the IATA Operational Safety Audit (IOSA) registry had zero accidents, with incidents across Africa by regional and global operators continuing to be experienced.

“Regrettably the region’s accident rate remains the highest. This should serve as sharp reminders that we need to work together towards enhanced safety oversight particularly in the areas of reporting and investigation of incidents and accidents,  Adopting a more aggressive approach to addressing the highest recurring operational risks.”

“Others are prioritising safety data and information exchange by all stakeholders is a must, not a nice to have, in order to build an accurate picture across the continent, promoting the understanding of the critical importance of aeronautical information (NOTAM/AIP to aviation safety, addressing as a priority the regional deficiencies, with a clear commitment to improving by all states and stakeholders.

Wole Shadare