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News: International Air Transport Association to Generate 155,000 Jobs Annually

Posted on Mon 29th Jun, 2015 - hotnigerianjobs.com --- (0 comments)


The Vice-President of the International Air Transport Association, African Region, Raphael Kuchi said the 12 countries involved in a recent open sky for Africa study will generate 155,000 jobs annually and increase the continent's GDP by $1.3 billion yearly if they embrace the open sky policy. He spoke to Chinedu Eze recently in Miami. He spoke to Chinedu Eze recently in Miami. Excerpts:

What is your view about airport infrastructure in Africa?
It has not been given the focus and attention it deserves particularly by governments and the investor community in Africa as a result of which in most cases the structure is run down, safety is compromised in some cases and we have very unstructured traffic rights regime or market access policies by different countries around Africa.

So basically the core challenges facing African aviation are three: safety and security, the second one is market access and then the cost to the industry, these are the three main challenges. Now on safety the southern African region seems to be much, much better in terms of safety than other parts of Africa. This is because of the regulatory bodies in the southern African region. One, they have qualifies and professionally trained people and they provide effective oversight of the operators. So we don't have so many problems in southern Africa as we do in other parts of Africa.

However, we always kept emphasising never to compromise safety at any point in time. It is important that continuously we make safety a top priority in this industry. Some parts of Africa, probably just for the sake of others, safety has not been given enough attention either because most of the professionals are poached by other countries who can pay better or the employers, the civil aviation authorities are unable to train these people and keep them in employment. So they have the people but they are poorly paid. Because of that we have quite a significant incidence of accident in Africa and overall the African accident rate is worse than the global average, it is actually about seven times the global average which is serious. And if you imagine that Africa is the region with the smallest Revenue, Passenger per Kilometer (RPKs), carries the smallest amount of traffic and yet it accounts for the highest number of accidents globally. It explains where we are.

But what is your view about embracing open sky policy in the continent?
Well first and foremost we did a study last year on opening up Africa and this was a study that covered 12 Africa countries. And what that study revealed was that if the 12 countries were to open up their markets to each other every year they will be able to generate 155 thousand jobs. They will be able to increase the GDP of these countries by an extra 1.3 billion dollars a year. And in addition, because opening up will actually increase competition, fares will come down and an additional five million people today who are not able to travel by air will be able to travel by air.

Now we are using this study to educate African governments, we are going to the countries that are actually covered by this study and talking to the ministers, the civil aviation authorities and the air operators in those markets, telling them that this is the least that can happen from these 12 countries. Africa has 54 countries, so you can imagine if you open up your market to the entire continent, how much are you going to benefit? And so as politicians, as governments, it is important, if you want to stimulate air traffic growth in your country, opening up the market is the best way to go not closing it.

And this is the message we are giving to Africa governments. We are doing a country by country launch of the report of those countries that are in the study and the ministers seem to be receiving this message very positively. We also presented this report to the African Union commission and this was the study that we think constitutes the bedrock on which the Africa Union actually started their discussions on single skies. Last year in South Africa when AU called a meeting in December and then this year in January where the heads of states actually adopted a solemn declaration and subsequently it lead to where the 11 ministers who have committed to opening up their market met in Addis Ababa to further come up with an action plan on how to actually implement the open skies for the 11 countries.

Why are some other countries in Africa not willing to open up their sky?
Well there are a number of reasons that states normally would assign for not opening up. One of them particularly for states that have their own national carriers; the thinking is always that if you open up our national carrier which is not strong, which has a limited network, it will actually die. But my argument to these African states is always this; even today without opening up the skies those airlines are dying anyway. So why do you think opening up is the one that is going to kill your airline? I rather think opening up will create more opportunity for your airline because if you open up many more operators will fly into your country. Many more passengers will fly in there and your airline has the opportunity to carry most of these passengers to other destinations.

Is there anything IATA is doing to curb high cost of air transport in Africa?
We are doing quite a lot of things on taxes, charges and fees all across Africa particularly in selected countries where we think these taxes are excessive. These are airport taxes, taxes on fuel, landing and parking charges. It is extremely high in Africa compared to other regions. The current one which we are working on is Zambia. We are working on two issues currently, one is the airport company wants to increase airport charges by 35 percent this year and another 22 percent next year.

They want to increase air navigation fees by 63 percent in two years. That is on one side, then on the other side they have very high taxes on fuel. So we worked with then since last year and now we have reached the point where the Zambian authorities have agreed to introduce transparency in the pricing formula for fuel. So they sent us a draft formula because the prices of fuel there have various components to it. But in many if the African countries you don't know what makes up the fuel prices and that is why we are saying governments hide behind the lack of transparency and just put any taxes in there and collect the money to do other things than developing aviation.

So in Zambia now they are coming up with a transparent formula and on the 25th of June, 2015 we are going to meet with the minister of transport, some people from the ministry of petroleum in Zambia, fuel suppliers as well as airlines that operate into Zambia to review the formula and then agree on how we can progress with it. Now once you have a formula any time there is price increase at the international market, then use that as a base and then add on the cost; then you can easily tell what the increase should be. Today it is not the case not just in Zambia but across many of the African countries.

Would you say the improved safety level already achieved in Africa is by chance or through a planned process?
First and foremost, let me just say that air accident can never be an issue of chance. An accident is actually always an accumulation of small, small incidents that add up which are not being taken care of by the operator. And so you can see the signals coming if you actually open up your eyes as an operator.

Now, in Africa there has been significant improvement in the last five ears and this has largely been due to creation of awareness about safety in Africa. And IATA has been a key player in ensuring that the stakeholders in the aviation industry become aware and conscious about safety and what they need to do to avoid air accidents. The key or cornerstone of our campaign has been the IATA Operational Safety Audit (IOSA) programme. Through the IOSA programme IATA has provided assistance to many African carriers. We have trained many of the staff of African airlines on various safety initiatives and safety programmes. And that awareness helps people to know how to track the programmes.

The second issue is that we have got an increasing number of African airlines that are now on the IOSA registry. By being on the IOSA registry and if you look at the accident rate of airlines that are on IOSA and those that are not on IOSA, those that are not on IOSA are more prone to accidents and the ratios are quite significant than those that are on IOSA. So this awareness creation and the fact that we are getting airlines to actually adopt IOSA is a significant contributor to this.

Initially our focus was on assisting airlines, now we have moved a step further to providing assistance to civil aviation authorities. And currently we have a programme going on which is being funded by IATF (IATA Airline Training Fund), which is providing similar training to civil aviation authorities so that we also make them as regulators as inspectors as overseers of safety in various African countries to be conscious about the importance of safety.

Don't you think that another challenge in Africa is that decision makers see air transport as elitist and not catalyst to economic development?
Again it goes back to this our study which we launched last year. From the indicators; from the study, it is very clear that if you make air transport accessible there will be more jobs created, there will be efficiency in productivity. Because instead of just sitting around inside an airport the whole day waiting to connect to a flight, if there are many flights between two city pairs, take for instance today between Lagos and Accra, you can actually literally work in Lagos and live in Accra. That is efficiency. Now a few years back you might only have probably one flight a day and once you miss that flight or once that flight is full you have to wait till the following day. Is that efficient?

So efficiency increases productivity and by increasing productivity we would be able to create other opportunities for our citizens. And this is the message we are sending to governments that don't see air transport as right but as privilege. Air transport is a basic service for everyone. And in normal circumstances today with the presence of low cost carriers in other parts of the world, airlines are actually competing with road transport, competing with rail transport in other parts of the world. In Africa we are still not there yet because of the third element I said that is challenging Africa, which is high cost of operations.

It is so expensive to run an airline than it is very difficult for you to be an efficient and profitable low cost carrier in Africa. But we have always said that if you open up your market the demand will come, the competition will come, the competition will force the pieces down. With the prices down the numbers will increase, the people who can travel by air will increase.

How far have IATA assisted civil aviation authorities in staff training?
You know civil aviation activities are actually being overseen by ICAO and under normal circumstances IATA should not be providing assistance to civil aviation authorities. Also for the simple reason that you don't want civil aviation to think that IATA is trying to compromise their independence. Because civil aviation is the auditor, it is the one who oversees your operations. So if you whose operation is being overseen, if you are the one seen providing them with help, it gives the impression that this people are trying to bribe us. So IATA is very conscious about this and we try to be as much as possible allow them the independence to do their work. However, there are situations where we think that we can provide them some basic assistance to be able to better appreciate the situations on the ground, to be able to meet certain basic training requirements that they need in which they don’t have the resources for.

Source: Thisday

  

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