The
three-day 21st ACI Africa Regional Conference, Assembly and
Exhibition was held in Livingstone, Zambia and this year’s theme
was “Overcoming the Challenges of Airport development in Africa”.
It brought together several high level delegates and industry
stakeholders comprising senior government officials, civil aviation
executives and experts, representatives from international aviation
related agencies as well as airport managers and partners to discuss
key topics such as funding airport infrastructure and air traffic
development, public private partnerships and investments. The
conference also dealt with the drivers of airports development such
as airlines strategies and hub creation, regulations and air
transport agreements, safety, security and human resources.
Robinson
Misitala, CEO NACL, Zambia, in his speech stressed the importance of
finding the right solutions to the problems that airports are facing.
He stressed that for years Africa was abandoned. There is now a
development of infrastructure in the majority of airports all over
Africa.
Pascal
Komla, Acting President, ACI Africa said that Africa air travel
experienced some decrease as a result of the North Africa uprising
but now it has returned to the levels of 2010.
Hon
Christopher Yaluma, Minister of Transport, Works, Supply and
Communications, noted that the outlook of aviation in Africa is
looking very good but the infrastructure of airports in Zambia still
remain behind in modernization as they are over 40 years old and for
that reason the government has embarked on a massive rehabilitation
program of airports such as the building of new terminals in
Livingstone and in Lusaka.
Angela
Gittens, Director General, ACI World, stated that ACI has by now 59
African airport members. She underscored that the most descriptive
phrase for the time we are in right now is: Uncertainty. And
uncertainty leads to low business confidence. The economic situation
in Europe is not necessarily getting better. However, the right
fundamentals for medium to long-term growth are still in place for
large parts of Africa and passenger growth in the region is broadly
positive too. After a good 2010, when passenger traffic rebounded
with an 11% increase from the doldrums of 2009, in 2011 the North of
the continent suffered severe losses in traffic, with a 17.6%
decrease in passenger numbers mainly because of the sharp declines in
North Africa following the Arab Spring. This was translated into a
-3% year-on-year in 2011 for the overall African passenger volumes.
However, African countries south of the Sahara showed a substantial
passenger traffic growth of 8%. Cargo traffic showed a similar
pattern in 2011, with a 6.4% decline in the North compared to a 5.4%
increase in the South. Sub-Saharan Africa had the second highest
growing passenger market in the world in 2011.
She
continued by saying that five out of the world’s top ten
fastest-growing economies were African nations, led by Angola and
aviation is a great growth driver. Aviation generated 275,000 direct
jobs in Africa, 21,000 of these were employees of airport operators,
mainly in airport management, maintenance, security and operations,
113,000 worked for airlines or handling agents and 104,000 worked
on-site at airports for other employers, such as government agencies
and retail outlets. Ms Gittens pointed out too that the fulfillment
of ACI require policy makers to overcome challenges.
While
many regions are experiencing challenging economic conditions, Africa
- with a population in excess of one billion and rich in natural
resources - is one of the few areas to record growth and the
long-term outlook is very positive. Africa’s rapid growth averaging
six to seven per cent in GDP portends well for future growth. This
growth is the result of political stability across Africa, the
government policies to promote air business, the increasing trade
with Asia, influx in foreign direct investment, trade liberalization
and the growing middle class with the ensuing growing consumer
demand for household.
The
ATAG report forecasts that aviation’s direct contribution to GDP in
Africa will increase by 5% per annum in real terms over the next 20
years helping to create an additional 66,000 jobs across the region
by 2030. Passenger volume is expected grow from 155 million in 2010
to 397 million in 2029, for a compound annual growth rate of 5%
while cargo volume will rise at a rate of 4% per year on average.
Therefore,
it was stressed that this is the right time to seek the support and
collaboration to achieve the right airport components of those
targets.
In
the session focusing on Funding Airport development, it was stressed
that a great challenge in the region is the fact that fewer than 20%
of Africa’s 150-plus commercial airports have more than 1 million
passengers per year, making the retail opportunity a limited one in
most places. Within the continent, two countries and six airports
contribute 40% of traffic, while 80% of the traffic is handled by
eight countries. As there is severe incapacity resulting from
obsolete infrastructure, understaffing and inadequate investment.
Dr.
Rafael Echevarne, Director of Economics and Programme Development,
ACI World, mentioned that Airports are highly regulated and the
framework does not allow for alternative use. 70% of airports
make financial losses and it is very difficult for airlines with less
than 1 million passengers to make a profit. Annual airport investment
needs in Sub-Saharan Africa to 2015 rise to 800million/year
according to World Bank. He emphasized the often under-valued role of
commercial aviation, which is was an area that the industry in
Africa had yet to tap into since the potential of non-aeronautical
revenues is huge, even at smaller airports. In his presentation he
pointed that the issues to be addressed are:
-To prioritize investments (Invest in existing infrastructure, no real need for new airports)
-To channel airport revenues towards infrastructure improvement
-The fact that revenues tend to end up in national treasury
-To develop non-aeronautical sources of income
-To take advantage of the Huge potential, even at the smaller airports
-To proceed to clear separation of functions between oversight functions and operations
-To support and stimulate growth
-The protection of non-profitable national carriers
-The implementation of the Yamoussourko decision on the liberalization of access to air transport markets in Africa as full implementation of the Decision has not been achieved
-To improve data collection
-To prioritize investments (Invest in existing infrastructure, no real need for new airports)
-To channel airport revenues towards infrastructure improvement
-The fact that revenues tend to end up in national treasury
-To develop non-aeronautical sources of income
-To take advantage of the Huge potential, even at the smaller airports
-To proceed to clear separation of functions between oversight functions and operations
-To support and stimulate growth
-The protection of non-profitable national carriers
-The implementation of the Yamoussourko decision on the liberalization of access to air transport markets in Africa as full implementation of the Decision has not been achieved
-To improve data collection
Prince
Chintimbwe, Director Airport Services, NACL said that the funding
for the infrastructure development of airports in Zambia is coming
from self-financing, commercial loans and GRZ grants.
Dr.
Elijah Chingosho Secretary General, AFRAA, emphasized that air
transport holds potential for growth and role for the economic
development of the continent by fostering trade and foreign
investments. The YD remains the single most important air transport
reform policy initiative by African Governments to date. African
carriers should find ways of cooperating more amongst themselves to
overcome limitations of market access.
He
presented certain conditions critical in accelerating implementation
of the YD namely:
-Integrated African air transport policy
-Avoidance of Non Competitive and Predatory Practices
-Elimination or Reduction og non-physical Barriers
-Integrated African air transport policy
-Avoidance of Non Competitive and Predatory Practices
-Elimination or Reduction og non-physical Barriers
Dr
Kostas Iatrou in his opening remarks at the panel Airline
Strategies and Airport Growth , hub and cargo said that there is a
symbiotic interaction between airlines and airports and dispute the
differences that exist they need to seat down together to find
solutions to the different issues that affect both.
Aaron
Munetsi, Regional GM, Africa & Middle East, South African Airways
said the current environment is for the thoughtful and valiant and of
they do well the future is the ideal. Airlines changed their business
model and now they are more flexible, proactive and they operate in a
deregulated environment. In the same time airports now are open to
all.
Mike
Higgins Regional Vice President Africa, IATA stressed that air
transport support over 32 million jobs worldwide including tourism.
In Africa it supports 6.7 million jobs, and produces 67.8
billion $ of GDP. It is projected that the annual growth of air
transport in Africa between the years 2010-2015 will be 6.1 versus
5.8 in the rest of the world.
Muhammed
Riza, Regional Manager, Commercial Operations, Emirates said that
Emirates serves 21 destinations in Africa with 300 weekly flights.
Their priority is more on frequency and on nonstop flights and daily
flights than on adding a new destination. The strengths of the
continent are cargo and tourism. However, there exist serious
challenges such as visa issues (f.ex. the requirement for transit
visas and visa requirements are cumbersome and often take long) and
poor infrastructure (f.ex. most airports not designed to handle
transit passengers) of the airports for both cargo and passengers. He
added that there is a need to build up strong regional partnerships
to expand in Africa. He conclude by saying that “the
opportunities we bring in the country we begin to fly are enormous as
with EK expanded network it is possible to feed aircrafts”.
Source:Air transport news
Source:Air transport news