No Common Ground Following EU Offer

Following a two-day ministerial (a meeting of ministers from different nations) on air transport in Ethiopia, Africa's transport authorities failed to reach a common position on an offer from the European Union (EU) to develop and implement one reciprocal agreement for the skies above both continents.

The ministerial was the third conference since African countries passed the 1999 "Yamoussoukro Declaration," which opened their skies to each other and was endorsed by heads of state the following year.

At issue is the implementation of a reciprocal agreement that would allow EU and African airlines into each others' skies.

The EU's proposal in 2003, "Community Clause," calls for the replacement of bilateral air service agreements signed by individual African countries with a multilateral arrangement signed by the African Union (AU) as a bloc; EU member country carriers could fly to African airports from multiple EU destinations and not be limited by bilateral agreements.

"The African aviation market is fragmented, characterized by small and weak airlines," said Tewodros Tamrat, director of Corporate and Industry Affairs at the African Airlines Association.

According to South Africa's Fly South, the African aviation industry generates about 470,000 direct and indirect jobs across the country, contributing over $11.3 billion dollars to African Gross Domestic Product. The airlines contribute about $7.5 billion, airports just over $2 billion and aerospace just over $1.5 billion.

According to the International Civil Aviation Organization (ICAO), in 2005 the number of air passengers traveling in the continent was 38 million, with an estimated growth rate of 6.9 percent.

However, said Tamrat, the airline industry in Africa faces serious challenges.

"Unless these airlines consolidate and create a bigger market, they will not be able to effectively compete with the bigger carriers and survive as an industry," he warned.

A legal document, "Guidelines for Negotiations" was recently prepared with the goal of creating this market.

Developed by the African Airlines Association (AFRAA) and the African Civil Aviation Commission (AFCAC), "Guidelines for negotiation," was presented to the AU for adoption at the beginning of 2007.

It advised African governments to demand reciprocal acceptance by EU member countries; thus bilateral arrangements would be amended accordingly. The 10-page document also confirms the EU's position that African countries should stop subsiding national airlines.

Not all ministers representing their countries approved of the document, however.

Some felt their national airlines were not ready to navigate a multilateral arrangement, while others determined that their interest is best served with traditional bilateral agreements. Some also suggested that a possible deal with the EU should not be made mandatory.

Unable to agree to adopt the guideline, the conference agreed to form a committee responsible for the reconciliation of the different views and develop a proposal that each country can accept.

"We hope that the committee will speed up its work and come up with a proposal as soon as possible that will help us move forward," said Tamrat.

FMI: www.icao.int, www.afraa.org, www.uneca.org/itca/yamoussoukro