T he official launch of the Single African Air Transport Market (SAATM) at the AU Summit late last month was a step in the right direction, but until everyone signs up and aligns their sovereign legislation accordingly, this initiative will never be more than words and noble principles. This was the general consensus of all industry members contacted by FTW following the launch of SAATM. Commenting on the failure of the two previous attempts to establish open skies in Africa – Yamoussoukro Declaration of 1988 and the Yamoussoukro Decision 1999 – Linden Birns, MD of aviation consultancy Plane Talking, pointed out that these attempts had been structured around a few loose principles and that there had been a lack political will. “In the last 10 years the AU has done a superb job of helping African governments to appreciate the socioeconomic imperative and benefits (trade, foreign direct investments, commerce, skills development etc) that could be delivered if they opened their markets and fostered greater levels of connectivity and competition,” he said. Birns added that the AU had also recognised a crucial shortcoming of the previous open skies attempts insofar as they had no underpinning texts or mechanisms for things like dispute resolution. “SAATM provides these and closes those gaps,” he said. However, the AU is currently not a legislative body and can thus only encourage and recommend policies and practices to its members. Birns said that this was where the AU and SAATM differed from the EU and the Single European Sky initiative. “So far only 23 of 55 AU member states have signed up for SAATM and agreed to pass enabling legislation and regulations that will allow them to participate in SAATM. The AU is working with the International Air Transport Association (Iata) and other bodies to encourage the remaining 33 nations to do the same,” said Birns. If this is achieved, the SAATM could significantly improve economic growth on the continent. “An Iata survey suggests that if just 12 key African countries opened their markets and increased connectivity an extra 155 000 jobs and US$1.3 billion in annual gross domestic product (GDP) would be created in those countries,” said Raphael Kuuchi, Iata vice president for Africa. Stuart Tonkin, deputy director Africa at ATC Aviation, said many international carriers were expanding their networks in Africa as they believed this was still a market where they could secure a high yield on exports. He cautioned that with the open skies principles of SAATM there could be an influx of more carriers into selected regions creating some tough competition and potential for yields to be reduced. “With this being said pricing may become affordable for some who previously moved away from airfreight due to high cost,” said Tonkin, adding that there could be a demand for general sales agents like ATC to expand into Africa where international carriers would need sales support and representation. Chris Zweigenthal, CEO of the Airlines Association of Southern Africa (Aasa), pointed out that it was important that the principles of the SAATM were implemented on a reciprocal basis ensuring that all parties derived value through improved opportunities.
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With the open skies principles of SAATM there could be an influx of more carriers into selected regions creating some tough competition. – Stuart Tonkin
