Transforming intra-African air connectivity

Aviation has the potential to make an important contribution to economic growth and development within Africa. WOLE SHADARE writes

The potential

The resolve by many African carriers to embrace the Single African Air Transport Market (SAATM) can open and connect markets, facilitating trade and enabling African firms to link into global supply chains.

While many air markets between Africa and countries outside of Africa have been liberalised to a significant extent, most intra-African aviation markets remain largely closed, subject to restrictive bilateral agreements, which limit the growth and development of air services. This has limited the potential for aviation to be an engine of growth and development.

Air Service liberalisation

Where African nations have liberalised their air markets, either within Africa or with the rest of the world, there have been substantial positive benefits. The agreement of a more liberal air market between South Africa and Kenya in the early 2000s led to 69 per cent rise in passenger traffic.
Allowing the operation of a low cost carrier service between South Africa and Zambia (Johannesburg-Lusaka) resulted in a 38 per cent reduction in discount fares and 38 per cent increase in passenger traffic.
Ethiopia’s pursuit of more liberal bilateral (on a reciprocal basis) has contributed to Ethiopian Airlines becoming one of the largest and most profitable airlines in Africa. Research has found that on intra-African routes with more liberal bilateral, Ethiopians benefit from 10-21 per cent lower fares and 35-38 per cent higher frequencies (compared to restricted intra-Africa routes).

Traffic Impacts of Intra-African Liberalisation

To understand the potential benefits of Intra-African liberalisation, analysis was conducted examining the impact of liberalising air markets between 12 countries within four sub-regions of Africa: North: Algeria, Egypt, Tunisia; East: Ethiopia, Kenya, Uganda; South: Angola, Namibia, South Africa; West: Ghana, Nigeria and Senegal

The impacts of liberalising the air market between these 12 countries were estimated using a gravity model developed by InterVISTAS, which forecasts traffic between any two countries (or groups of countries) based on the two countries’ economic characteristics, trade levels, geographic relationship, and the characteristics of the air service bilateral between the two countries.

By specifying changes to the terms of the bilateral, the model can be used to estimate the traffic impact resulting from liberalisation. From this, the model then estimates the resulting employment impacts and Gross Domestic Product (GDP) impacts.

Overland joins other Nigerian airlines

In a bid to break air travel barriers and enhance air connectivity, Overland Airways penultimate Sunday connected Lagos to the West Coast, especially to Cotonou, Benin Republic and Lomé, Togo to other cities in the sub region.

Fifteen years into successful scheduled domestic operations in Nigeria, Overland Airways commenced international operations to Cotonou and Lome with fanfare.

Overland’s foray into these cities raises the number of Nigerian carriers into the cities. Overland Airways comes with a lot of experience coupled with the use of the right equipment.

The airline operates ATR 42/72 airplanes, which are ideal for a short haul service. The ATR 42/72 area twin-turboprop short-haul regional airliner is developed and manufactured in France and Italy by ATR (Aerei da Trasporto Regionale or Avions de transport régional).

Overland’s coming was long expected because of confidence reposed in the airline in its niche domestic market ,which has been adjudged as very successful.

The company is likely to sustain its operations to the cities because of the choice of airplanes, which are not only efficient, but cost effective. The aircraft also has low fuel consumption. Fuel is the single highest component in aviation business, contributing over 30 per cent to cost of airlines’ operations.

The management of the airline led by Captain Edward Boyo, Executive Director, Mrs. Aduke Atiba, Chief Operating Officer (COO), Aanu Benson and other officials of the carrier, were given a rousing welcome by Nigeria’s Ambassador to Benin Republic, Kayode Emmanuel Oguntuashe and top officials of Benin Republic officials at the Cadjehoun Airport.

Free movement

Speaking to journalists at the airport shortly after the aircraft landed at about 8pm, Oguntuashe stated that Overland’s operations to Cotonou would enhance free movement of people, particularly investors and assist greatly in integration of countries in West Africa.

His words, “Lack of effective integration has left a huge gap, which I believe Captain Boyo and his team are ready to fill. This is good. Your coming inspires us. You have made this happen and you are part of history. You have shown courage and determination.

“There are five million Nigerians here; majority of them are business men and students. The economy of Benin Republic is tied to Nigeria. The economy of Benin Republic cannot exist without Nigeria.”

Shortly after the airport formality, the aircraft headed for another 25 minutes trip to Lome. The highlight of the event was the customary water cannon honour done for the carrier; a customary exercise done for new entrants.

A peep from the aircraft window showed a sizeable number of top officials of Togolese aviation sector led by the Director-General of Togo Civil Aviation Authority, Dokisime Gnama Latta, Nigeria’s Ambassador to Togo, Olusola Iji, former Secretary-General of African Airlines Association (AFRAA), Folly Kosi and others.
Oguntuashe stated that advent of Overland to Togo was a welcome development in consolidating Bilateral Air Services Agreement (BASA) between Nigeria and Togo.

“We have BASA between the two nations and that agreement will be implemented by the two countries. I know that Overland started this journey before I became Ambassador to Togo. The consummation of that effort is taking place during my tenure.”

Besides, he said that the aviation market in Togo presents very good opportunity for Overland to maximise its investment with large population of businessmen in Togo and Nigeria, which he noted would advance opportunities for the citizens.

“What we are witnessing today is a reality for Nigerian airlines like Overland to come into the trade here. I urge Overland to operate maximally,” he said.

Experts’ view

Experts who spoke said enhancing air connectivity could help raise productivity, by encouraging investment and innovation; improving business operations and efficiency.

To them, air transport is indispensable for tourism, where convenient air service facilitates the arrival of larger numbers of tourists to a region or country.

Last line

The stimulatory impact of liberalisation also means that the incumbent home carrier often still experiences a growth in traffic volumes despite this loss of market share.

Wole Shadare