“Bilateralism has become a serious bottleneck in the overall development of the air
transport network in Africa. There is an urgent need to implement the Single Africa Air
Transport Market (SAATM) to deliver a competitive air transport network for the continent.”
International travel and tourism rely to a very large extent on air travel and transport. The
reliability and dependability of carriers to transport passengers from city to city is critical to
growth in passenger flows. According to the WTTC Economic Impact report for 2022, the
Travel and Tourism industry contribution to GDP in 2021 was USD119 billion and 21.3million
jobs had been created in the industry globally.
In the next decade, Africa is estimated to grow at an average annual rate of 6.8 percent, which is higher than the 3.3 percent estimated growth for the entire regional economy. It is also expected to create 14 million
new jobs in the region by 2032.
Despite the global increase in air travel from 2012, Kenya’s aviation industry performance is
still lagging those of the rest of the world. About 75 percent of the air traffic in Kenya is on
non-Kenyan owned airlines due to major economic struggles faced by local airlines, and a
business model that does not deliver on sustainability and competitiveness.
The bilateralism approach since 1944
The international air transport industry operates under a complex regulatory framework of
Bilateral Air Service Agreements (BASAs) between two states granting carriers specific air
traffic freedoms. However, this worked in the 70s and it is no longer relevant in the 21 st
century. Technology has declared the global marketplace borderless, rendering it an open-
source space for the exchange of value, based on consumer expectations.
The BASAs have imposed restrictive trade environments that impose restrictions on airline
frequencies and capacities rendering the industry inefficient. On the other hand, national flag
carriers continue to grapple with inadequate operating capital, limited frequencies and
networks, low application of modern technologies due to costs and government
protectionism mind-set.
Bilateralism has become a serious bottleneck in the overall development of the air transport
network in Africa. There is an urgent need to implement the Single Africa Air Transport
Market (SAATM) to deliver a competitive air transport network for the continent.
Deregulating the air transport industry implies free entry and exit for any carrier, thereby
attracting more carriers and investors into the sector and this will promote competition and
improve the quality of service to customers. Air fares will also reduce significantly as it was
witnessed in the United States market after liberalizing their air services.
New business models emerged, domestic air travel doubled in the first ten years of deregulation, air fares
reduced, and investors of low-cost carriers grew significantly.
Embracing the “Open Skies”
It is time the African governments allowed the air services industry to operate as any other
industry. For example, we have witnessed major revolution in Kenya’s economy over the
past 15 years driven by the Mobile money industry, today standing at 75% penetration rate
according to the Communications Authority of Kenya statistics.
The aviation industry has undergone major structural changes, and the bilateral agreements
confine the potential of the industry and the end value being delivered to the customers.
Aviation industry is premised on freedom of movement of people and goods. The industry
has matured during the previous decade, and population in the continent has exploded with
over 1.3 billion people in Africa.
The Chicago convention of 1944, which has governed modern aviation industry post second
world war, standardized different types of scheduled operations that were categorized
according to the various “freedoms of the skies”. This is what resulted to the present BASAs
between countries stipulating which airlines could fly between them, the capacity of each
airline amongst other commitments.
The degree of freedom a country enjoys in operating over another country’s airspace is
assured for the first and the second fair traffic freedoms, and the exchange of the other
freedoms is negotiated within the bilateral agreements issued among countries.
Reforming the “freedom of the African Skies”
The structural limitations of the BASAs stifled growth of aviation industry in Africa, leading to
the adoption of the Yamoussoukro Decision (YD) in 1988 by the African States with a view
to reforming the industry. Intra-Africa traffic was hampered by the BASAs, creating an
expensive air sector shrouded with incomprehensible air fares.
For example, a return air ticket to Kigali could cost USD400 for a 1hr 35mins flight time while a return air ticket to Dubai could cost USD 400 for a 5hrs 5mins flight time! This is against the YD objective
which intended to stimulate the flow of private capital in the aviation industry to enable
increased passenger demand and a reduction of air fares.
In 2018 the assembly of Heads of State of the African Union established a common legal
multilateral protocol granting market access under the Single African Air Transport Market
(SAATM) within the context of the AU Agenda 2063. It is aimed at ensuring the full
implementation of the Yamoussoukro Decision on the air transport liberalization in Africa.
SAATM is a critical enabler to the success of the implementation of the African Continental
Free Trade Area – a common marketplace for the African continent.
An “Open Skies” environment in Africa will catalyse Intra-Africa travel and trade and
contribute to sustainable growth and development of the continent through increased trade
between African countries. It would make it easier and cheaper to travel Intra-Africa.
From a sustainability perspective, “Open Skies” policy on environmental impact could be
established within the framework to incentivize airlines to operate more efficiently, leading to
reduced emissions and a smaller carbon footprint for the African Continent with major social
benefits for the people of Africa.
Pioneering a Comprehensive Air Transport Agreement in the short to medium term
The East African region – taking into consideration the three major aviation hubs – Kenya’s
Jomo Kenyatta International Airport (JKIA), Ethiopia’s Bole International Airport and
Rwanda’s Bugesera International Airport) – is ripe for pioneering of a Comprehensive Air
Transport Agreement.
This will present an expanded airport capacity that allows for the unrestricted operation of national carriers within the East African skies. The agreement essentially should deliver upon market access, safety and security, and environmental protection with the EAC Regional Economic Community (REC).
This will open access within the EAC market, increase trade and movement of passengers
within the region. In the medium term, it will inspire other RECs within the African Continent
to embrace the implementation of the SAATM and deliver a win-win for the consumers,
carriers and governments as GDP contributions grow.
Comprehensive Air Transport Agreements (CATA) have been leveraged strategically in
creating successful market access in Europe and US by several carriers. The US pioneered
its CATA with Netherlands, and to date the passenger flows and demand has continued to
grow exponentially, fueling the growth in trade between the two states.
It is imperative that we keep in mind that due to the complexity of the freedom of skies
negotiations, only the first and second freedoms were agreed upon by the participating
states in the Chicago Convention of 1944. The remaining seven freedoms were left for
bilateral negotiations by the willing states – this is over 70yrs ago! Hence to make progress
let us shift our mind-set to a new strategic approach through the Comprehensive Air Transport Agreements (CATA) to revolutionaries intra-Africa travel in the 21 st Century for the common good of the future generations!
