IATA calls for action to liberalise Africa's skies

CEO proposes four point growth agenda JOY ORLEK THE INTERNATIONAL Air Transport Association (IATA) last week revealed its four point agenda for the revitalisation of African aviation. Enhanced safety efforts, infrastructure development, liberalisation and simplification of the business are the cornerstones for growth, director general and CEO Giovanni Bisignani told a stakeholders’ forum in Johannesburg as he concluded a four-day trip to Kenya and South Africa. “The airline industry desperately needs change. We are a growing industry that is bleeding red ink. Airlines lost US$36 billion between 2001 and 2004. With the extraordinary price of oil, another US$7.4 billion will be added to industry losses in 2005, despite the tremendous progress in efficiency that airlines have made. While Africa’s traffic is growing, the industry is far from healthy. Change is as urgent in Africa as it is in other parts of the industry. The IATA plan for Africa sets a clear path for airlines and governments,” said Bisignani. He said that Africa had made some progress on safety. “Compared to a 10 year average of 10.84 hull losses per million sectors, in 2004 African carriers achieved a rate of 5.2. This is progress, but it is still 6.6 times worse than the global average. With only 4.5% of total traffic, 25% of total accidents occurred in Africa. Our industry is built on safety and Africa must do better,” he said. On the question of infrastructure, Bisignani said that parts of Africa had well developed airport and air traffic management systems. “But at many airports, runway pavement, airfield lighting, weather information, navigational aids and fencing are not up to standard. It is not always clear that taxes and charges on air transport are re-invested in the industry. Moreover governments are not making the strategic investments to support air transport and gain its economic benefits,” he said. “Africa needs leadership with the vision to carry forward projects to upgrade infrastructure. For example, the implementation of NAVISAT (an improved communications system from Cape Town to Cairo) and RVSM (Reduced Vertical Separation Minima) will have benefits for safety, fuel efficiency and quality of service. IATA is here to help, but governments must approach continental solutions with vision, leadership and speed,” said Bisignani. He was critical of slow progress towards airline liberalisation. “In 1988 the Yamoussoukro Declaration was visionary in its approach to regional liberalisation. I am disappointed that we are still discussing this in 2005. It is time for action and results,” he said.