presentations - aci

Transforming Intra-African
Air Connectivity
Adefunke Adeyemi
Regional Head, Member & External Relations
Africa & the Middle East
Aviation is the most dynamic and
progressive industry in the world
Aviation is the real World Wide Web
4
Air transport facilitates international trade
5
IATA Economics www.iata.org/economics
5
Aviation supports international tourism
6
IATA Economics www.iata.org/economics
6
And aviation also facilitates other activities –
culture, knowledge sharing, health and education
IATA Economics www.iata.org/economics
7
Connectivity …
is the key condition for
industry’s success
Building connectivity
is a must for sustainability
Africa …
the next emerging
growth story
Africa
Aviation’s
contribution
 $80 billion in GDP
 7 million jobs
 70 million pax
Africa vs.
 Europe - $860 bn
 AsiaPac - $516
bn
 LatAM &Car $153 bn
 M E - $116 bn
…GDP !
• Blessed
with
abundant
natural
resources
and
IMMENSE opportunities for
further
growth
and
development.
• 2015-2034 – 4.7% growth in
pax nos.
• 8 of the 10 fastest growing
economies in AFI
IATA Economics www.iata.org/economics
13
Building connectivity
within the continent
is fundamental
Aviation connects African businesses to world markets
Source: SRS Analyser, non-stop connections, July 2014
IATA Economics www.iata.org/economics
15
Good
Kenya
Bad
But connectivity could be improved in most of Africa
1.6
1.4
1.2
1.0
0.8
0.6
0.4
S Africa
Nigeria
Iceland
Malta
Cyprus
UAE
Hong Kong
Singapore
Jordan
Mauritius
New Zealand
Qatar
Panama
Switzerland
Lebanon
Australia
Malaysia
Thailand
Ireland
Portugal
US
Latvia
Vietnam
Indonesia
Spain
Denmark
Philippines
Kenya
Canada
Norway
Greece
Finland
Israel
Netherlands
UK
Taiwan
Morocco
Italy
Austria
Japan
Saudi Arabia
Brazil
Turkey
Luxembourg
Germany
China
South Korea
Sweden
Belgium
France
Ecuador
Czech Republic
Egypt
Colombia
Mexico
South Africa
Hungary
Chile
Romania
Peru
India
Bolivia
Russia
Argentina
Kazakhstan
Nigeria
Venezuela
Poland
0.2
0.0
Source: IATA’s destination-weighted measure of air transport connectivity
IATA Economics www.iata.org/economics
Connectivity per $billion of GDP (PPP), 2012
16
In particular within the continent
Source: SRS Analyser, non-stop connections, June 2014
IATA Economics www.iata.org/economics
17
In particular within the continent
Source: SRS Analyser, non-stop connections, February 2015
IATA Economics www.iata.org/economics
18
Africa is missing out on economic benefits
Source: Intervistas
IATA Economics www.iata.org/economics
19
Fares on intra-African routes are high
Passenger yields and average trip length
0.19
Within Africa
Passenger yields, US$ per RPK
0.17
Within S America
0.15
45%
Within Asia
0.13
N-S America
0.11
Within Europe
Middle Eastrest of world
0.09
Pacific
Africa-rest of
world
0.07
AsiaEurope
N Atlantic
0.05
0
2000
4000
6000
Average trip length
8000
10000
12000
Source: PaxIS Plus, 2013 Q2
IATA Economics www.iata.org/economics
21
Taxes on Passenger Air Tickets
 Tourism and Departure taxes
 VAT and other sales taxes
 Solidarity taxes
 Recommendations from A38 ICAO
Assembly (Montreal, Sep-Oct 2013) call
for all Contracting States to eliminate
excessive taxation on air transport and
reinforce ICAO policies on taxation with
States
But load factors aren’t!
Passenger load factors
85%
N American
airlines
80%
Industry
average
75%
African
airlines
70%
65%
60%
55%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: IATA
IATA Economics www.iata.org/economics
23
Despite successes where markets have opened
Where African nations have liberalized their air markets, either within Africa or
with the rest of the world, there have been substantial positive benefits:
•
Kenya - South Africa (early 2000s):
– 69% rise in passenger traffic;
•
Ethiopia’s pursuit of more liberal bilaterals:
– On intra-African routes with more liberal bilaterals, Ethiopians benefit
from 35-38% higher frequencies and 10-21% lower fares.
– ET one of the largest and most profitable airlines in Africa;
•
Morocco-EU open skies (2006):
– 160% rise in traffic;
– Number of direct routes between Morocco and EU increased from 83 in
2005 to 309 in 2013.
•
Permission for LCC service between South Africa and Zambia (JNB-LUN):
– 38% increase in passenger traffic;
– 38% reduction in discount fares;
IATA Economics www.iata.org/economics
24
Liberalization of intra-African markets remains a key
issue
Source:
WTO Air Services Agreement Projector
IATA Economics www.iata.org/economics
25
IATA Economics www.iata.org/economics
26
Understanding the benefits of liberalization
• Examine the impacts of air service liberalization for 12 countries
in Africa:
–
–
–
–
North: Algeria, Egypt, Tunisia
East: Ethiopia, Kenya, Uganda
South: Angola, Namibia, South Africa
West: Ghana, Nigeria, Senegal
• Two set of liberalization scenarios considered:
– liberalization between all 12 countries and
– liberalization within each sub-region
IATA Economics www.iata.org/economics
27
Modelling the benefits – multiple channels
IATA Economics www.iata.org/economics
28
Overall Impacts
o $1.3 billion of incremental GDP
o 155,000 additional jobs
o Additional 5 million passengers
o Fare savings of 25-35% - $500m
o 75% increase in direct services
o Time savings
o Greater convenience
IATA Economics www.iata.org/economics
29
Passenger traffic would increase in all markets
IATA Economics www.iata.org/economics
30
Passengers and shippers would benefit in many ways
•
Greater connectivity:
• Of the 66 country-pairs between the 12 countries, 34 (52%) had some
form of direct service in 2013;
• With liberalization, 17 additional country-pairs will gain direct services,
so that 75% of country-pairs will have direct service.
•
Greater convenience:
• Of the 34 country-pairs with direct service in 2013, only 21 had service
operated at daily frequencies or better.
• With liberalization, greater service frequencies can be supported,
providing greater convenience and choice for consumers.
•
Time savings:
• New routes and greater frequencies will shorten the flying time
between many cities..
•
Fare savings:
• Passengers are expected to benefit from fare reductions of 25-35%,
providing a saving of over US$500 million per annum.
IATA Economics www.iata.org/economics
31
Increased connectivity would boost economic growth
Increased air service and traffic would stimulate economic growth and employment in a
number of ways:
• Aviation Sector:
o Additional activity driven directly by additional air services.
• Tourism Sector:
o Air services facilitate the arrival of larger numbers of tourists (both business and
leisure); The spending of these tourists can support a wide range of tourism
related businesses: hotels, restaurants, theatres, car rentals, etc.
• Impacts on Trade, Investment and Productivity:
o Air transport facilitates market access for both trade in goods and services (new
opportunities and lower trade costs);
o Availability of air transport a key factor in business location decisions;
o Increased market access enables firms to achieve economies of scale, driving
productivity benefits.
IATA Economics www.iata.org/economics
32
Creating new business opportunities
Increased air service and traffic would stimulate economic growth and employment in a
number of ways:
• Aviation Sector:
o 38,000 additional jobs
• Tourism Sector:
o 1.23 million additional tourist visits. $1,285 million in incremental tourist spend.
75,000 additional jobs.
• Impacts on Trade, Investment and Productivity:
o $430 million increased trade.
o $345 million in incremental GDP and an additional 42,000 jobs in the wider
economy.
IATA Economics www.iata.org/economics
33
Even if liberalization is at a regional level
Barack Obama:
‘The markets with greatest potential are often those next door’.
IATA Economics www.iata.org/economics
34
Africa as a whole would see significant benefits
IATA Economics www.iata.org/economics
35
On the road to liberalization…
o Additional airline capacity
o Optimised Infrastructure – ground and air
o Ease of intra-African mobility
o Efficiencies
o Resoursing
o Manpower
o Etc…
IATA Economics www.iata.org/economics
36
Industry & Governments
must work together
Next Steps…
• At the AU HoS Summit, AFI re-committed to
full implementation of YD – 11 States
• Ministerial conference last week has begun
the work of implementation
• Countries willing and ready for full
implementation of YD should write to the
African Union and AFCAC
IATA Economics www.iata.org/economics
38
Notable Quotes
•
It is significant that the African Union has set goals for
reaching the global safety average by the end of this year,
and implementing Yamoussoukro by 2017. It means both
airlines and governments are united in driving forward
crucial improvements for air connectivity. I am an optimist
for African air transport - if governments act on their
commitments, then aviation will tra sfor Afri a – Tony
Tyler, IATA director-General & CEO
• “The future of aviation and our continent must be in our
hearts… e ust all take respo si ility a d leadership i
the recognition of the catalytic role of aviation for socioe o o i de elop e t – John Tambi, NEPAD, August
2014
IATA Economics www.iata.org/economics
39
IATA Economics www.iata.org/economics
40
ROYAUME DU MAROC
MINISTERE DE L’EQUIPEMENT, DU TRANSPORT
ET DE LA LOGISTIQUE
DIRECTION GENERALE DE L’AVIATION CIVILE
DÉVELOPPEMENT DU TRANSPORT AERIEN
« LIBERALISATION DU TRANSPORT
AERIEN AU MAROC »
Conférence Régionale de l’ACI Afrique
Casablanca, 18-22 avril 2015
Dr. Mohamed HAMIDI
Directeur Adjoint Transport Aérien
Direction Générale de l’Aviation Civile - Maroc
1
Sommaire
Politique du Transport Aérien au Maroc (Libéralisation)
Stratégie de développement du Transport Aérien
Impacts de la libéralisation du Transport Aérien au Maroc
Aérien et Tourisme au Maroc (vision 2020)
Libéralisation du Transport Aérien en Afrique
55
6
Conclusion et Propositions
Politique du Transport Aérien au Maroc
Processus de Libéralisation du Transport AérienAu Maroc
depuis 2001
3
Politique du Transport Aérien au Maroc
Accords aériens conclus par le Maroc:
Plus de 70 Accords (80% libéraux) et 3 Open Sky
Direction Générale de l’Aviation Civile
Ministère de l’Equipement, du Transport et de la Logistique
4
Stratégie de développement du Transport Aérien
La stratégie du Ministère de l’Equipement, du Transport et de la
Logistique en matière d’Aviation Civile pour la période 2012 -2016
s’articule autour des cinq pôles suivants:
Pôle Développement du transport aérien
Pôle Institutionnel
Pôle Sécurité, Sûreté et Qualité de l’aviation
civile
Pôle Formation
Pôle Capacité aéroportuaire et espace aérien
5
Stratégie de développement du Transport Aérien
Pôle Développement du transport aérien:
Positionnement de Casablanca/Mohamed V comme l’aéroport HUB
de référence de l’Afrique du Nord;
Consolidation des dessertes aériennes du marché européen afin
d’assurer les objectifs de la Vision 2020;
Promotion du transport aérien domestique;
Développement du Fret Aérien au Maroc;
Mise en œuvre des dispositions du Contrat Programme Etat -RAM
Pôle Institutionnel:
Adoption du projet de loi (40-13) portant code de l’Aviation Civile et
élaboration des textes d’application (Convergence réglementaire avec
l’UE);
Renforcement de la régulation économique du transport aérien;
Mise en place de l’Observatoire de l’Aviation Civile (OAC).
6
Stratégie de développement du Transport Aérien
Pôle Sécurité, Sûreté et Qualité de l’aviation civile:
Mise à niveau de la réglementation nationale en matière de sécurité
aérienne conformément aux standards internationaux;
Renforcement de la supervision de la sécurité aérienne et le suivi de
l’industrie aéronautique;
Rehaussement du niveau de la sûreté de l’aviation civile au Maroc;
Amélioration de la qualité des prestations de transport aérien.
Pôle Formation:
Création d’un pôle de formation dans le domaine de l’aviation civile;
Valorisation des ressources humaines de la DGAC: valeurs,
compétences, capacités et motivation, et amélioration du système de
formation continue.
Pôle Capacité aéroportuaire et espace aérien:
Développement des plates formes aéroportuaires;
Réorganisation de l’espace aérien marocain.
7
Principaux indicateurs avant et après la libéralisation
Croissance du nombre de compagnies aériennes:
En 2003 : 22 Cies aériennes régulières
Saison été 2015: 44 Cies dont 04 compagnies marocaines , 14 LCC
29 européennes et 12 non européennes.
Renforcement et structuration de la RAM.
Connextion de plus de 60 pays contre 28 en 2003.
Ouverture de 24 nouveaux points en Afrique Occidentale et australe
Croissance du nombre de Fréquences:
Saison Eté 2015 : 1350 fréq/sem contre 530 en 2003.
Croissance du Trafic Pax national et international:
15,5 M de Pax Int. en 2014 contre 5,2M en 2003
1,2 M domestique (+14% en 2014): Développement du domestique
Baisse des tarifs:
Baisse de (-37%) des tarifs des billets
Objectifs:
Devenir parmi les 20 premières destinations touristiques dans le monde
(vision 2020) – 25 M de Pax.
Amélioration de la qualité des dessertes et des services.
8
Principaux indicateurs après la libéralisation
Evolution du trafic aérien au Maroc
EVOLUTION DU TRAFIC AERIEN DES PASSAGERS
TRAFIC / ANNEE
2006
2007
2008
2009
2010
2011
2012
2013
2014
NATIONAL
1 830 270
1 869 900
1 753 426
1 712 760
1 674 240
1 519 578
1 327 737
1 474 120
1 715 008
INTERNATIONAL
8 565 282
10 256 681
11 113 035
11 637 251
13 687 601
14 150 340
13 776 925
15 022 071
15 579 863
GLOBAL
10 395 552
12 126 581
12 866 461
13 350 011
15 361 841
15 669 918
15 104 662
16 496 191
17 294 871
16,65
6,10
3,76
15,07
2,01
-3,61
9,21
4,84
Var en %
-
Sous l’effet combiné de la libéralisation et de l’accord Open Sky en 2006, le trafic aérien
commercial de passagers au Maroc a connu globalement une tendance positive à la hausse
atteignant 4,84% en 2014 par rapport à 2013, malgré une conjoncture internationale difficile
9
marquée par la crise financière mondiale, les événements du printemps arabe .
Principaux indicateurs après la libéralisation
Evolution du trafic pax 2006-2014 par Région:
EVOLUTION DU TRAFIC AERIEN DES PASSAGERS
2006
2007
2008
2009
2010
2011
2012
2013
2014
EUROPE
6 867 828
8 300 217
9 042 993
9 617 173
11 384 232
11 706 713
11 063 190
12 139 236
12 482 701
MOYEN ORIENT
593 414
708 194
749 658
721 086
791 504
849 888
981 998
1 004 123
1 100 789
AFRIQUE
PAYS DU
MAGHREB
AMERIQUE DU
NORD
AMERIQUE DU
SUD
496 627
615 699
652 266
652 140
756 539
843 043
850 557
859 339
1 034 334
379 922
390 715
422 822
417 598
480 362
475 715
612 125
734 294
649 706
227 403
241 757
245 284
229 140
274 944
274 811
269 049
282 199
282 405
88
99
12
114
20
170
6
2 880
29 928
TOTAL
8 565 282
10 256 681
11 113 035
11 637 251
13 687 601
14 150 340
13 776 925
15 022 071
15 579 863
10
Principaux indicateurs avant et après la libéralisation
Evolution du nombre total des fréquences 2003 - 2014 (Saison Eté)
1329
1320
1400
1277
1203
1080
1052
1200
+10%
862
1000
- 4%
+23%
+14%
800
+22%
560
600
- 18%
+54%
400
200
0
2003
2006
2009
2010
2011
2012
2013
2014
Saison Eté 2015 : 1350 fréq/sem (+5,7%) dont 155 fréq/sem en Afrique contre
137 en 2014, soit (13%).
11
Connectivité du Maroc durant la saison IATA Eté 2014
Le Maroc est actuellement connecté à peu près de 60 pays et 112 aéroports
étrangers via des lignes régulières.
12
Connectivité du Maroc durant la saison IATA été 2015
13
Connectivité du Maroc durant la saison IATA été 2015
14
Principaux indicateurs après la libéralisation : Afrique
Marché Africain
Dessertes aériennes vers l’Afrique Eté 2015
200 fréquences et 28
pays desservis
15
Impacts de la libéralisation sur le tourisme au Maroc
Aérien et Tourisme
Le secteur du transport aérien est un levier de développement touristique
par excellence et un outil de renforcement de l'intégration socio-économique
des régions.
Le tourisme occupe une place de choix dans la structure économique et
financière du pays et représente un levier considérable pour l’accélération
de la croissance socio-économique. Le tourisme exerce ainsi une grande
influence sur les autres secteurs de l’économie.
Au cours de l’année 2013, 10 millions de touristes ont visité le Maroc et y ont
effectué 132 millions de nuitées. Ces visiteurs se distinguent en 2 catégories :
53% sont des touristes étrangers en séjour (TES)
47% sont des Marocains Résidents à l’Etranger (MRE)
16
Impacts de la libéralisation sur le tourisme au Maroc
Aérien et Tourisme
Avion privilégié par les touristes: 66% du total des arrivés.
Touristes étrangers : 83% du total utilisent principalement l’avion pour se
rendre au Maroc.
Exception Espagne (proximité géographique): 40% Avion 22% Voiture
personnelle grâce au service de traversier (ferry) qui relie l’Espagne et le
Maroc.
Pour les MRE: 47% Avion, 29% voiture et 23% Ferry
Les cinq premières destinations du Maroc les plus visitées en 2014 sont:
Marrakech, Agadir, Casablanca, Tanger et Rabat. Ces destinations ont
accueilli 54% de l’ensemble des séjours sur le territoire et 47% des nuitées.
Marrakech fait partie des destinations les plus populaires.
17
Les objectifs de la vision 2020
Les objectifs de la Vision 2020 se traduisent par une croissance accélérée des
arrivées ainsi que de la desserte aérienne.
Dessertes
Trafic
Arrivées de Touristes à horizon 2020,
en nombre de pax (2010-2020)
On est à 17M
+9% / an
Besoins en desserte aérienne,
en nombre de fréquences hebdomadaires,
hors Casa. et Rabat (2003-2020)
On est à 1300 fréq/sem
+14% / an
1 650
20 354
9 333
512
18
Perspectives de trafic à l’horizon 2020
19
Libéralisation du Transport Aérien et Afrique
Aperçu Décision de Yamoussoukro
La Décision de Yamoussoukro a été adoptée à Yamoussoukro (Côte d’Ivoire) le 14 novembre
1999 en vue de la libéralisation de l’accès aux marchés du transport aérien en Afrique. Cette
décision a été entérinée par la suite par la Conférence des Chefs d’Etat Africains à Lomé (Togo)
le 12 juillet 2000, mais malheureusement elle n’a jamais été mise en œuvre.
L'objectif de la Décision de Yamoussoukro est de supprimer toutes les entraves au
développement du transport aérien en Afrique, elle requiert spécifiquement, entre autres :
La libéralisation complète du transport aérien intra-africain en matière d’accès, de capacités,
de fréquences et de tarifs;
Le libre exercice par les compagnies aériennes qualifiées des première, seconde, troisième,
quatrième et cinquième libertés pour le transport aérien de passagers et de fret ;
La libéralisation des tarifs et la concurrence loyale
Le respect des normes de sécurité établies et des pratiques recommandées par l’OACI
Libéralisation du Transport Aérien et Afrique
Décision de Yamoussoukro
La première des ambiguïtés de la DY est de se situer à mi-chemin entre une logique
multilatérale libérale et la logique bilatérale protectionniste des accords aériens
traditionnels. (Les articles 2 à 5 de la DY, qui définissent le domaine libéralisé sont d’essence
multilatérale, alors que l’article 6, qui précise les mécanismes de mise en oeuvre, renvoie à des
modalités bilatérales).
Une des principales difficultés pour les compagnies aériennes africaines est le libre-accès au
marché. Il y a encore beaucoup trop de protectionnisme, pas de cadre juridique harmonieux et
une multitude d’accords bilatéraux, pour ne citer que ces handicaps.
Les décideurs africains doivent être convaincus de l’ensemble des bénéfices que peut
procurer la libéralisation du transport aérien, car certains redoutent la disparition de
petites compagnies aériennes.
Et c’est à nous experts de démontrer ces bénéfices économiques, sociales et culturels
de la libéralisation du secteur. Il faut mettre en évidence une seule idée simple, du fait
de limitation des budgets en Afrique, il est préférable d’investir les deniers publics
dans les infrastructures plutôt que dans des compagnies aériennes nationales
(Exemple Suisse).
Libéralisation du Transport Aérien et Afrique
D’ailleurs, comme stratégies commerciales, les compagnies aériennes leader dans le continent ont
adopté le système de Hub permettant de faire converger tous leurs vols en un seul aéroport central
pour ensuite desservir les pays voisins.
L'introduction du secteur privé dans les activités de transport aérien devrait être envisagée, car ce
secteur est producteur de valeur ajoutée dans le développement et l'intégration de l'économie
africaine. La notion de "compagnie porte-drapeau d'un pays" devrait être abandonnée
(propriété des compagnies aériennes africaines).
Les autorités de l'aviation civile, les compagnies aériennes, les aéroports, les fournisseurs de services
de navigation aérienne, des services d’assistance en escale et des autres services devraient coopérer
dans le but de stimuler la libéralisation du transport aérien.
Pour le cas du Maroc, il a développé son industrie aéronautique pour se placer en
pionnier du secteur en Afrique.
Un rôle pionnier conforté par la décision de Royal Air Maroc et des autorités
aéronautiques, annoncée début août 2014, de maintenir, jusqu'à nouvel ordre, ses vols sur
les pays touchés par l'épidémie du virus Ebola (Guinée Conakry, le Liberia et la Sierra
Leone), et ceci dans une démarche de solidarité responsable.
Conclusion Propositions: 1/2
Le développement de l’Afrique est
développement du Transport Aérien.
indéniablement
tributaire
du
Dans le but de développer davantage la connectivité entre les pays d’Afrique, il y a
lieu de libéraliser totalement l’espace aérien et développer davantage les points ciaprès, à savoir :
Améliorer le sécurité et la sureté aérienne;
Améliorer les dessertes aériennes par la réactivation des lignes aériennes
reliant les aéroports de proximité entre eux ;
Octroyer la 5ème liberté aux compagnies aériennes entre les pays de la
région : Car l’enjeu pour une compagnie aérienne étant le taux de
remplissage qui doit dépasser 85% et par suite pérennisation de la
desserte.
Qualité des dessertes: nombre de fréquences (1 quotidien au moins);
dessertes de jour; Handling,…….;
Qualité des services: Accessibilité, Accueil, Catering,…..
Promouvoir des services de transport aérien entre les pays par le
renforcement des connexions aériennes vers d’autres aéroports (profiter
des campagnes co-marketing pour compagnies aériennes) ;
Prévoir l’organisation de séminaires, conférences et rencontres pour la
promotion et l’utilisation d’un système de connectivité permanent;
23
Conclusion Propositions: 2/2
Profiter des mécanismes incitatifs pour le lancement de nouvelles
dessertes économiquement viables à moyen terme ;
Réduire et exempter certaines dépenses des compagnies aériennes :
redevances aéroportuaires, taxes de navigation aérienne, services
aéroportuaires,…. ;
Faciliter l’accès des visas entre les pays de la région: Exemple une fois
vous avez un billet d’avions et un séjour, vous avez accès à un Visas
même de courte durée ; et même Suppression de visas pour certains pays;
Développer le fret aérien entre les pays de la Région: Cas de Atlas Cargo
Lines : nouvelle filiale fret de la RAM: 4 nouvelles lignes 100% Cargo à
partir de Casablanca ont été lancées depuis le 15 septembre 2015 pour 4
destinations (à savoir Dakar, Bamako, Niamey et Ouagadougou).
Introduction du secteur privé et investir dans les infrastructures plutôt
que dans des compagnies aériennes nationales.
24
THE AFRICAN CIVIL AVIATION COMMISSION
WORKING TOGETHER FOR A LIBERALISED AIR
TRANSPORT SYSTEM IN AFRICA: CURRENT SITUATION
OF LIBERALIZATION IN AFRICA
Presented By
Iyabo O. Sosina (Ms)
AT THE 53RD ACI AFRICA BOARD AND WORKING GROUPS MEETING &
REGIONAL CONFERENCE AND EXHIBITION 2015
INTRODUCTION
Air transport plays a key role in trade flows and movement of
Persons and goods.
It represents a major component of geographical and economic
integration.
It fosters growth, trade and tourism.
This industry plays a major role in world economic activities and
remains one of the fastest growing sectors globally.
For Africa, the Yamoussoukro Decision (YD) 1999 is the ideal
instrument which provides for the liberalization of intra-African
scheduled and non-scheduled air transport services both in its
concept and in principle.
INTRODUCTION
The YD provides for the removal of restrictions on traffic
rights, capacities and frequencies and allows multiple
designation as well as full liberalization of cargo and other air
services.
It also addresses safety, security and environmental challenges.
It is a binding legal instrument which creates rights and
imposes obligations on member States. Such obligations
supersede national laws, including existing agreements.It
focuses on internal market liberalization and fair competition
as key development strategies.
It provides for dispute resolution and Consumer Rights
Protection.
It also provided for the creation of the Executing Agency for
implementing the Decision.
AFCAC AS THE EXECUTING AGENCY OF YD
• The Heads of State and Government of the African Union (AU)
on 29 June, 2007 approved the Ministerial resolution conferring
on AFCAC, the attributions of the Executing Agency of the YD.
• This role essentially gives to AFCAC, the supervision and
management of Africa’s liberalized and single air transport
market.
• Thus, AFCAC will ensure the full and effective implementation
of the YD with the ability to enforce its provisions.
• It will also consider important issues such as safety, security and
environment which are integral aspects of liberalization.
AFCAC AS THE EXECUTING AGENCY OF YD
In addition, the Executing Agency is expected to:
• Monitor the current status of aviation in Africa,
• Develop and/or harmonize regulations applicable to air transport
liberalization within the continent,
• Apply regulations relating to the liberalization of air transport.
• Ensure compliance by the States, RECs and various
stakeholders, particularly airlines, airports and other allied
service providers, and
• Protect the rights of air transport service users in accordance
with Articles 9.4, 9.5 and 9.6 of the YD.
AFCAC AS THE EXECUTING AGENCY OF YD
• AFCAC’s Constitution was thus, revised at the end of 2009 to
include these new responsibilities and its institutional framework
is currently well suited to carrying out the duties stipulated under
Articles 9.4, 9.5 and 9.6 of the Yamoussoukro Decision and
directives of other policy organs of the AU System.
• The Constitution provisionally entered into force on 11 May 2010.
• It is important to note that AFCAC is expected to be supported in
its Executing Agency role by States and the Regional Economic
Communities (RECs) which also play a direct role in coordinating
the development of air transport in their respective regions.
STATUS OF IMPLEMENTATION OF YD
• The full implementation of the YD has unfortunately remained at
the regional level rather than at the continental level.
• Restrictive bilateral agreements still prevail on the continent
among member States despite the existence of the YD.
• This has deprived the Continent from realising the objectives and
full benefits derivable from the full implementation of YD.
IMPEDIMENTS TO THE FULL
IMPLEMENTATION OF THE YD
• Lack of political will due to the very nature of the African air
transport industry which generally is not governed by economic
laws.
• Apparent disregard for African Integration by States as provided
for in the Abuja Treaty(AEC) which is a cornerstone of YD.
• Airlines have limited means and their survival is dependent mostly
on State subsidies and control.
• Generally, airport infrastructures are inadequate and are in decay.
• African governments are yet to consider air connectivity as a
strategic sector to economic development, particularly in boosting
investments, trade, tourism, job creation and creative financing and
mobility of Labour.
IMPEDIMENTS TO THE FULL
IMPLEMENTATION OF THE YD
• States without strong carriers chose to protect their carriers and their
markets for fear of domination by Carriers of other States.
• States without carriers are apathetic on the basis that they have
nothing to benefit.
• Perception that bigger carriers will abuse dominant positions in a
liberalized environment and drive the smaller carriers away
• Claims of lack of continent-wide policy on civil aviation to guide
orderly and progressive development on the continent
• Claims of lack of harmonized continental Competition Rules,
Dispute Settlement Mechanisms, Consumer Protection Rules and an
• Visa restrictions and other non tariff barriers
• Lack of understanding of the linkages between Aviation to other
transport modes, vibrant economics and Integration of the continent.
IMPERATIVE OF THE YD
But guess what? Implementation of the YD is a:
Win – Win
For
EVERYBODY !!!
YAMOUSSOUKRO DECISION:
JOURNEY SO FAR
• As a result, continuous efforts have been made by the AUC,
States, RECs, AFCAC, AFRAA towards ensuring the full
implementation of the YD. In this process, we have worked
with our partners and other stakeholders, especially IATA and
ACI.
• AUC, AFCAC and AFRAA are currently working in
conjunction with the RECs to harmonize the various subregional initiatives to avoid duplication of efforts;
• The development of a Common African Civil Aviation Policy
(AFCAP) by AFCAC and its adoption as a policy instrument
of the African Union is also of import;
YAMOUSSOUKRO DECISION:
JOURNEY SO FAR
All of these Agencies worked together with the States,
RECs and Stakeholders and in September, 2014
successfully completed the elaboration of documents that
will guide the full implementation of the YD. These
Regulatory Texts of the YD were approved by the
Ministers in November, 2014 namely:
•
•
•
•
Competition Rules,
Consumer Protection,
Dispute Settlement Mechanisms and
Powers and Functions of the Executing Agency
YAMOUSSOUKRO DECISION:
JOURNEY SO FAR
In January, 2015 these documents were presented to the Assembly of
Heads of States for approval at their Summit through the relevant
organs of the African Union and accordingly;
The Heads of States approved the texts and also took the Decision to:
Accelerate its full implementation; and
Created a Single African Air Transport Market by 2017.
11 countries there and then, signed on to the “Solemn Commitment” to
actualize this Decision
More are expected to join in the coming few months.
BENEFITS OF FULL
IMPLEMENTATION OF YD TO AIRPORTS
The full implementation of the YD will lead interalia to:
Increase in and efficient utilization of airport facilities and
airspace
Increase in passenger and cargo traffic leading to more
revenue for: Airports, Air Navigation Services, Airlines, the
publics
To be more precise, enhancement of revenue generated from
Passenger Service Charges, landing and parking fees, Air
Navigation charges and other non-aeronautical revenues to the
States
Above all, job creation.
OTHER BENEFITS OF THE FULL
IMPLEMENTATION OF YD
• Integration of the peoples of Africa which is a
cornerstone of the African Union.
• Development of the economy through trade and
tourism.
• Development of social services
• Alleviation of the sufferings of the peoples of Africa
in terms of the movement of peoples within and
between States and communities on the continent.
YAMOUSSOUKRO DECISION:
THE WAY FORWARD
Stronger political will from states remains a critical
element for the full implementation of YD;
ACI (Africa) and its members the Airport Operators
(most of which are continentally major agencies of
Government) should assume more aggressive roles and
collaborate with other Stakeholders in seeking the full
implementation of YD and attracting the businesses of
airlines and other allied service providers.
YAMOUSSOUKRO DECISION:
THE WAY FORWARD
• More commitment from all other stakeholders
with respect to the full implementation of YD is a
must
• AFCAC (as the Executing Agency Of YD) will
continue to sensitize and create awareness among
stakeholders on the benefits of liberalization (YD)
CONCLUSION
Given the fact that our continent is now focusing on Agenda
2063, the time has come for Africa to embrace the full
liberalization of air transport services and ensure the
Consummation of the Single Air Transport Market as being
central to the Development and Integration of our Continent.
Let me conclude by quoting Her Excellency, the AU
Commissioner for Infrastructure and Energy, Dr. Elham M. A.
Ibrahim at the 1st meeting on the Sustainable Development of
Air Transport in Africa Madagascar (25-27 March 2015) :
"Further delay in the implementation of the YD and the
establishment of the Single Air Transport market is no longer an
option if we intend to remain relevant in the estimation of
Africans."
THANK YOU!
53th ACI AFRICA CONFERENCE
Market Structure and Distortions
Why Does it Matter to Commercial Lenders!
Presented by Pierre Pozzo di Borgo, Principal Investment Officer
Casablanca, April 2015
1. IFC is Proactively Pursing Opportunities in Africa’ Aviation Sector
Bankable Opportunities in the Aviation Sector in Africa are Proving Difficult to Come by!
•IFC is looking
aggressively for
opportunities to invest
or provide debt
instruments in the
aviation sector in Africa
•Has designed a strategy
for aviation in Africa
•Screened more than
100 companies over the
past 3 years (i.e.,
airlines, airport, ATC,
MRO, etc.
•Engaged with 10 and
only 2 are still current
IFC has invested in 2 airlines and 1 ATC in Africa
IFC is mandated on 1 airline and 1 airport financing
2
2. Aviation Sector – A Tough Business for Shareholders and Lenders!
Investment Case Within the Aviation Industry is Hard to Make worldwide!
Global Airlines Return on Capital is Dismal!
Profitability of the 4 Largest Segments
700
600
“If you want to be a Millionaire, start with a billion
10%
dollars and launch a new airline.” – Sir Richard
597
9%
9%
Branson
8%
500
436
400
7%
6%
6%
300
200
5%
4%
4%
100
0
7%
-17,0
Airlines
-3,7
Airports
36
3%
82
-0,2
Lessors
-0,6
Manufacturers
-100
2%
1%
0%
Revenues
Economic Profit
Return on Capital
3
3. Aviation Business in Africa – Tougher Than Anywhere Else?
Investment Case in Africa Seems to Have Additional Layers of Complexities
1. Market Size
Very small with not enough demand to sustain daily flight
between most of the city pairs
2. Market Structure (Public/Private)
Predominantly state owned with limited to no competition
3. Market Regulation
Non application of Yamoussoukro Decision
4. Market Taxation
Extremely high
The above structural issues have
already taken a heavy toll on the sector
in sub-Saharan Africa with well
publicized bankruptcies and
corresponding job losses
4
3.1 Market Size – Small and Concentrated
Albeit Small, Africa 164 Million Annual Pax Aviation Market is Developing but is Experiencing Increased Volatility
Africa Passenger Shares by Sub Regions
Africa is a small market but with different
dynamics depending on its sub
regions…and still highly concentrated
1999
2013
Top Five Countries (Africa)
57%
61%
Top Five Countries (SSA)
70%
67%
Source: ACI
Year on Year Growth Rate
14.0%
+7.0% p.a
Africa Passenger Counts by Sub Regions (in millions)
180
170
160
12.0%
150
10.0%
140
8.0%
130
6.0%
120
4.0%
110
2.0%
100
0.0%
90
-2.0%
80
-4.0%
70
-6.0%
60
160
Number of Passengers (millions)
16.0%
Africa Aviation Activity (1999/2013)
+2.8% p.a
140
+4.1% p.a
120
100
North Africa
64.5
+6.0% p.a
80
60
North Africa
36.9
40
20
SSA
99.7
SSA
44.0
0
1999
2013
Source: ACI
Source: ACI
5
3.2 Market Structure (Public/Private)
The World’s Largest Airlines – Large Markets, Privately Owned and/or Wealthy Governments
World Largest Airports
10 Busiest Airports in Africa
0
20%
80%
100%
Public
Private
10 World Largest Airlines
20%
80%
Public
Private
Public
Private
10 Largest Airlines in Africa
Of the world’s20%
largest
airlines, only Emirates
and China Southern are
state owned. Their80%
State
Sponsors Are Wealthy!
Public
Private
6
3.3 Market Regulation
Africa – Weak Technical Oversight Combined with Weak Investors’ Rights
Weak technical oversight: Less than 20% of African countries’ Civil
Aviation
have achieved
the US FAA Cat 1treaty
Status:
Cape Agencies
Town Treaty
is an international
intended
Cape Verde to standardize transactions involving
movable property. The treaty creates international
Egypt
standards for registration of contracts of sale
Ethiopia
(including
dedicated registration agencies), security
interests (liens), leases and conditional sales
Ghana
contracts, and various legal remedies for default in
Morocco agreements, including repossession and the
financing
effect
of particular
states' bankruptcy
laws
Weak Investors/Lenders’
Non Signatory Countries
Nigeria
Rights:Cape Town Treaty:
South Africa
7
3.4 Market Taxation
The Worst in the World When Compared to End Users’ Purchasing Power
o
Roundtrip Lowest Economy Fare for Key W. Afr. Routes, March 2015
New Airport – Don’t’ Over do it!
Example of Three Greenfield Airport Projects
Underway in Sub Saharan Africa:
Traffic (Pax –
in Millions)
CAPEX
(US$M)
Estimated Financial
Debt/Year/Pax (US$)
for the Next 20 years!
Airport A
2.0
1.000
US$35
Airport B
0.5
600
US$46
Airport C
0.3
450
US$45
African’s Unit Cost per Passenger in 2012 was US$14!
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4. Conclusion - What is IFC Looking For and What it is Finding!
Strong Sponsors and Business Plans
Private Sector or Public Private Partnership
Profitable or Prospect for Profitability
Limited Government Interference
Development Impact,
Environmental and Social and Corporate
Governance
Weak Implementation of the YD
Numerous government’s projects to create new
national champions (e.g. Nigeria, Ghana);
New and expensive greenfield or brownfield
airport projects operated by Public Entities
requiring substantial increase in airlines taxes
(e.g. Dakar, Ouagadougou, Accra, Lome airports);
and
Foreign Investment/Shareholding Restriction
9