Solid Growth in Passenger Demand Continued in October

Geneva – The International Air Transport Association (IATA) released data for October 2024 global passenger demand with the following highlights:

  • Total demand, measured in revenue passenger kilometers (RPK), was up 7.1% compared to October 2023. Total capacity, measured in available seat kilometers (ASK), was up 6.1% year-on-year. The October load factor was 83.9% (+0.8ppt compared to October 2023).
  • International demand rose 9.5% compared to October 2023. Capacity was up 8.6% year-on-year and the load factor rose to 83.5% (+0.6ppt compared to October 2023).
  • Domestic demand rose 3.5% compared to October 2023. Capacity was up 2.0% year-on-year and the load factor was 84.5% (+1.2ppt compared to October 2023).

“Continued strong and stable demand is good news, but just as important is the steady improvement in load factors. It shows what a great job the industry is doing in flying people more efficiently.

Average seat factors have risen from around 67% in the 1990’s to over 83% today. Politicians thinking of trying to tax passengers off planes to reduce emissions would do well to note this. Even if fewer people fly because taxes make it too expensive, it doesn’t automatically mean reduced emissions because the planes will still fly, just with fewer passengers. That would reverse decades hard won progress. We need to see the planes full to generate the economic and social benefits of travel with the most minimal emissions possible,” said Willie Walsh, IATA’s Director General.

Air Passenger Market in Detail

October 2024 (% year-on-year)World Share​1RPKASKPLF(%-PT)​2PLF(Level)​3
Total Market100%7.1%6.1%+0.8%83.9%
Africa2.1%9.3%5.2%+2.8%73.8%
Asia Pacific31.7%12.7%9.7%+2.2%84.1%
Europe27.1%7.9%6.5%+1.1%86.2%
Latin America5.5%7.0%7.5%-0.4%84.5%
Middle East9.4%2.5%2.7%-0.1%80.3%
North America24.2%0.3%1.6%-1.1%83.2%

1) % of industry RPKs in 2023    2) Year-on-year change in load factor    3) Load Factor Level

Regional Breakdown – International Passenger Markets

All regions showed growth for international passenger markets in October 2024 compared to October 2023. Europe had the highest load factors, and Africa showed a sharp increase, but the Americas and the Middle East suffered falls.

Asia-Pacific airlines achieved a 17.5% year-on-year increase in demand. Capacity increased 17.2% year-on-year and the load factor was 82.9% (+0.3ppt compared to October 2023).

European carriers had an 8.7% year-on-year increase in demand. Capacity increased 7.3% year-on-year, and the load factor was 85.7% (+1.1ppt compared to October 2023).

Middle Eastern carriers saw a 2.2% year-on-year increase in demand. Capacity increased 2.5% year-on-year and the load factor was 80.2% (-0.2ppt compared to October 2023).

North American carriers saw a 3.2% year-on-year increase in demand. Capacity increased 2.9% year-on-year, and the load factor was 84.2% (+0.3ppt compared to October 2023).

Latin American airlines saw a 10.9% year-on-year increase in demand. Capacity climbed 11.6% year-on-year. The load factor was 85.3% (-0.6ppt compared to October 2023).

African airlines saw a 10.4% year-on-year increase in demand. Capacity was up 5.3% year-on-year. The load factor rose to 73.2% (+3.4ppt compared to October 2023).

Domestic Passenger Markets

The US showed a surprise slight decline, while all other key domestic markets showed stable growth. Fast-growing Chinese domestic demand is being met with increased use of wide-body aircraft.

October 2024 (% year-on-year)World Share​1RPKASKPLF(%-PT)​2PLF(LEVEL)​3
Domestic39.9%3.5%2.0%+1.2%84.5%
Domestic Australia0.8%2.9%-0.5%+2.8%86.2%
Domestic Brazil1.2%9.5%7.8%+1.3%83.7%
Domestic China P.R.11.2%9.7%2.2%+5.9%86.2%
Domestic India1.8%6.1%9.6%-2.7%81.7%
Domestic Japan1.1%3.3%-0.2%+2.9%84.0%
Domestic US15.4%-1.2%0.8%-1.7%82.5%

1) % of industry RPKs in 2023    2) year-on-year change in load factor    3) Load Factor Level 

Note: the six domestic passenger markets for which broken-down data are available account for approximately 31.4% of global total RPKs and 78.8% of total domestic RPKs.

> View the October Air Passenger Market Analysis (pdf)

For more information, please contact:

Corporate Communications
Tel: +41 22 770 2967
Email: corpcomms@iata.org

Notes for Editors:

  • Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.
  • All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.
  • Domestic RPKs accounted for about 41.9% of the total market in 2022. The six domestic markets in this report account for 31.3% of global RPKs.
  • Explanation of measurement terms:

– RPK: Revenue Passenger Kilometers measures actual passenger traffic

– ASK: Available Seat Kilometers measures available passenger capacity

– PLF: Passenger Load Factor is % of ASKs used.

  • IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.
  • Total passenger traffic market shares by region of carriers for 2023 in terms of RPK are: Asia-Pacific 31.7%, Europe 27.1%, North America 24.2%, Middle East 9.4%, Latin America 5.5%, and Africa 2.1%.

Source: IATA

Kenya rolls out reforms to boost passenger traffic at JKIA

NAIROBI, Nov. 12 (Xinhua) — The Kenyan government on Monday rolled out reforms at the main airport Jomo Kenyatta International Airport (JKIA), located in the capital city of Nairobi, to enhance passenger traffic.

John Mbadi, cabinet secretary in the Ministry of National Treasury and Economic Planning, said in a statement issued in Nairobi that the reforms will deliver seamless, efficient, and respectful services to customers departing and arriving in the country through the facility.

“The goal is to reduce waiting time, minimize any inconveniences, and strengthen Kenya’s reputation as a welcoming destination,” Mbadi said.

He said the government has prioritized advanced technological solutions in the reforms to streamline customs and immigration processes to minimize paperwork.

He added that the initiative will provide travelers with clear information on customs duties and taxes, therefore, promoting transparency.

Mbadi noted that the measures would help position JKIA as a world-class gateway to Kenya and a leading aviation hub.

JKIA is one of Kenya’s three main entry points, with the other two being Moi International Airport located in the coastal city of Mombasa and another in the lakeside city of Kisumu in western Kenya.

Most of Kenya’s tourists arrived through JKIA, while the rest entered the country via the Moi airport.

According to the Kenya National Bureau of Statistics, in the first quarter of 2024, Kenya received 409,164 tourists through the two airports, with 343,555 using JKIA.

Source: Capital Fm

Transforming Air Travel Accessibility In East Africa

Amidst the sun-kissed shores of Mombasa, Kenya, the 19th Meeting of the East African Community (EAC) Sectoral Council on Transport, Communications, and Meteorology is in full swing, with a pivotal focus on liberalizing the Upper Airspace and driving down airfares across the region.

The agenda spans discussions on the status of crucial regional initiatives encompassing railways, roads, maritime, communications, and meteorology sub-sectors.

In a momentous address during the inaugural session on Tuesday, Hon. Andrea Aguer Ariik Malueth, the EAC Deputy Secretary General overseeing Infrastructure, Productive, Social, and Political Sectors, underscored the Community’s strides towards a harmonized airspace.

The completion of Phase One marks a landmark achievement, paving the way for the interoperability of air navigation systems within the region.

Embracing the liberalization of air transport services within the EAC heralds a new era where national carriers can traverse the region with enhanced freedom.

However, despite the potential advantages of air travel in East Africa, exorbitant airfares pose a formidable barrier, with routes like Nairobi to Entebbe, Nairobi to Kigali, and Nairobi to Dar es Salaam ranking among the costliest globally per seat.

The financial turbulence of high airfares

A staggering 43% of air ticket prices in the EAC are attributed to regulatory charges, taxes, landing fees, and other levies, with regulatory fees alone accounting for up to 24% of the total cost.

The prohibitive pricing not only dissuades potential travelers but also hampers economic growth, contributing to the region’s high cost of conducting business.

Insights gleaned from a study by the African Development Bank underscore the deterrent effect of elevated ticket prices, dissuading nearly 30% of prospective air passengers in the region.

Experts advocate for the removal of tariffs to potentially reduce air transport costs to below $100 per route, fostering increased connectivity and economic vitality

Quantitative analyses reveal the transformative power of liberalization, with projections indicating a 9% reduction in average fares and a substantial 41% uptick in flight frequencies, stimulating heightened passenger demand.

The envisioned liberalization among EAC member states holds the promise of generating over 46,000 jobs and injecting a significant US$202.1 million annually into the GDP.

Hon. Ariik, standing in for EAC Secretary General Hon. Veronica Nduva, emphasizes the urgency of advancing the remaining phases to fully liberalize the air transport sector.

Acknowledging ongoing infrastructure enhancements at various airports, including international hubs in Hoima, Dodoma, Bugesera, Melchior Ndadaye, Juba, and N’djili, he champions South Sudan’s strides in aviation legislation as a model for regional progress

While applauding the momentum towards reduced airfares, Hon. Ariik advocates for broader participation in the Single African Air Transport Market (SAATM) to streamline intra-continental travel.

With only three regional countries currently part of SAATM, he calls upon all nations to expedite their inclusion in this pivotal initiative, poised to revolutionize air travel dynamics across the continent.

Source: Newslex Point

What Do Africa’s Airline Connections With The US Look Like Compared To 5 Years Ago?

It’s been almost five years since the start of the COVID-19 pandemic, and the aviation industry has mostly recovered . So, what are the United States’ direct flight connections with the continent of Africa for November 2024 compared to November 2019 before the pandemic? Africa is collectively home to around 1.4 billion people – far more than North and South America combined. According to data from Cirium, flights between the US and Africa have significantly more than recovered from the pandemic.

Airlines flying between the US and Africa

Comparing data for the months of November 2019 and November 2024 for direct flights from Africa to the United States, there has been a notable 33% increase in flights.

Delta Air Lines A330-200 shutterstock_2486927139

Photo: Markus Mainka | Shutterstock

In 2019, seven airlines flew from Africa to the United States – two US airlines and four airlines based in countries in Africa. Two United States-based airlines fly to Africa – Delta Air Lines and United Airlines . American Airlines is notable for not flying to Africa (there are reasons why American Airlines doesn’t fly to Africa ), while Southwest doesn’t even fly to Canada as its system is not set up to receive Canadian dollars .

Airlines flying between the United States and Africa in November 2024

  • Royal Air Marco
  • EgyptAir
  • Delta Air Lines
  • United Airlines
  • Kenya Airways
  • Ethiopian Airlines

Two of the six African airlines in 2019 were from North Africa (Royal Air Maroc in Marocco) and EgyptAir. Three airlines from sub-Saharan Africa (Ethiopian Airlines, Kenya Airways, and South African Airways). One airline from the African island nation of Cape Verde (Cabo Verde Airlines) doesn’t fit neatly into the North/Sub-Saharan African divide.

Delta Airbus A330

Related

Delta Once Planned A Massive African Expansion – What Happened?

Change in US-based flights to Africa

Notably, US-based Delta and United have driven the increase in flights between the continents. Overall, the number of monthly flights has increased from 640 to 852, a 33% increase.

United Airlines Boeing 787 departing LHR shutterstock_2400014209

Photo: Kevin Hackert | Shutterstock

Delta’s flights increased from 160 in November 2019 to 232 in November 2024. That represents a 45% increase in flights and a total of 59,506 seat capacity for November 2024. Delta is the airline with the most flights and seats between the US and Africa. It flies to South Africa, Nigeria, Ghana (in West Africa), and Morocco.

Airline:Flights November 2019Flights November 2024Change
Royal Air Maroc:134112-16%
Delta Air Lines:160232+45%
Ethiopian Airlines:91150+65%
Kenya Airways:4460+36%
EgyptAir:8674-14%
South African Airways:1120-100%
United Airlines:0224+100%
Cabo Verde Airlines:130-100%
Total:640852+33%

While United lacked any flights to Africa in November 2019, it has 224 scheduled for 225, placing it second after Delta. United’s African destinations are similar to Delta’s: South Africa, Nigeria, Ghana, and Morocco. All of these routes (except for flights from Newark to Marrakesh, Morocco) are served with Boeing 787-8 Dreamliners. Most are three times a week, although the flights to South Africa’s Johannesburg are daily.

United Airlines Boeing 767-300ER landing

Related

United Airlines Expands In Africa: Only US Carrier To Fly Non-Stop From Newark To Marrakesh

Marrakech is United Airlines’ fifth destination in Africa.

8

Change in Africa-based flights to US

Two African-based airlines ( Cabo Verde Airlines and South African Airways ) are no longer scheduled to fly to the US in November 2024. Whereas Ethiopian Airlines may have been a sub-Saharan success story, the same cannot be said for South African Airways. Once the leading airline in sub-Saharan Africa, it collapsed in 2019 but resumed operations in 2021 and is being rebuilt .

Ethiopian Airlines Boeing 777

Photo: Croatorum | Shutterstock

Despite a large civil war (and a series of other confusing civil wars) ravaging parts of Ethiopia (particularly between 2020 and 2022), the number of Ethiopian Airlines flights to the United States has increased by 65% from 91 flights to 150. That is the largest percentage increase of any airline over that time (from a non-zero starting point).

Ethiopian Airlines has grown to become one of the leading stars of airlines in sub-Saharan Africa and offers some of the best connections for the continent (there are comparatively few inter-African connections). Ethiopian Airlines has made its hub at Addis Ababa a major hub for sub-Saharan Africa in general. Unfortunately, in Western countries Ethiopian Airlines is perhaps better known for Ethiopian Airlines Flight 302 , whose Boeing 737 MAX 8 crashed in March 2019 (which heralded Boeing’s MAX crisis that continues to buffet the company today).

AirlineSeats November 2019Seats November 2024Change
Royal Air Maroc:38,50832,368-16%
Delta Air Lines40,04459,506+49%
Ethiopian Airlines:25,15543,136+71%
Kenya Airways:10,29614,040+36%
EgyptAir:26,57424,790-7%
South African Airways:30,7800-100%
United Airlines:054,024+100%
Cabo Verde Airlines:2,3790-100%
Total:173,736227,864+31%
Kenya Airways Boeing 787 Come Live The Magic livery

Photo: Abdul N Quraishi – Abs | Shutterstock

Kenya Airways has also been able to increase its flights to the US by 36%. EgyptAir and Royal Air Maroc have both decreased a little, with 14% fewer flights and 7% fewer seats, and 16% fewer flights and 16% fewer seats, respectively. There are no scheduled Cabo Verde Airlines flights scheduled for November 2024.

Africa is the world’s second-largest continent and has so much to see and do. It is one of the least explored regions of the world and very often gets in the news for all the wrong reasons. Sub-Saharan Africa is best known for its safaris to see the animals, but there is so much more on offer. The comparative dearth of flights to only seven of Africa’s 56 or so countries shows there is much more potential.

Source: Simple Flying

IATA Warns of Capacity Crunch as Air Travel Picks up.

Airports could be fast approaching infrastructure capacity crunch that would restrict connectivity and choice for passengers and businesses, International Air Transport Association (IATA) has warned.

IATA latest data indicates a growing demand in air travel business putting pressure on the existing aviation infrastructure.

International passenger traffic in August grew by 10.6 per cent, adding 0.6 per centage points to July’s.

During the month under review, the volume of passengers carried in the African region grew to 10.1 per cent from 8.1 per cent in July.

“Despite the current global political uncertainty, the strong demand for international travel in August points to a promising outlook,” notes International Air Transport Association in August 2024 data.

“As of August 2024, international air travel demand’s monthly volumes have marked historic highs, or inched closer to them, for all regions including for the whole industry, expect for Asia Pacific, which is 8 percentage points from full recovery.

According to IATA, all regions’ international markets achieved rates above 4.3 per cent, with North America and the Middle East slightly decelerating compared to July, in line with their typical seasonal patterns. Airlines from the Asia Pacific region continued to lead, achieving the highest growth at 19.9 per cent YoY, followed by Latin America and Africa, at 13.6 per cent and 10.1 per cent, respectively.

All regions showed growth for international passenger markets in August 2024 compared to August 2023. Ticket sales in May-July for travel in August-September showed a 6.6 per cent year-on-year increase, which bodes well for further strong growth this year.

“The market for air travel is hot and airlines are doing a great job at meeting the growing demand for travel. Efficiency gains have driven load factors to record highs while the 6.5 per cent capacity increase demonstrates resilience in the face of persistent supply chain issues and infrastructure deficiencies,” said Willie Walsh, IATA’s Director General.

“Looking ahead, the continued strong demand growth signals that we could be fast approaching an infrastructure capacity crunch that would restrict connectivity and choice for passengers and businesses. If governments want to maximize the benefits of aviation, they must take bold decisions to ensure sufficient infrastructure capacity. And, in the interim, both airports and air navigation service providers need to do more with the resources they currently have. In particular, the variance in declared capacity of airports with broadly the same infrastructure needs to be resolved, with airports emulating the best performers. The industry cannot afford to under-utilize the airport infrastructure that we have,” said Walsh.

Source: Kenyan Wallstreet

Uganda Airlines launches new Zimbabwe route this month

Uganda Airlines is set to launch flights between Entebbe and Harare on 25 September, aiming to boost bilateral trade and tourism between Uganda and Zimbabwe. Chief Commercial Officer Adedayo Olawuyi highlighted the potential for increased trade and tourism, citing the lack of direct air links between the two countries. The airline will initially operate four flights covering Entebbe, Lusaka, and Harare.

The airline plans to expand its services to include Lusaka, Bulawayo, and Victoria Falls, tapping into the high-traffic routes between Zimbabwe and Zambia. This move is part of Uganda Airlines’ broader strategy to grow its regional network.

Uganda Airlines also intends to transport cargo, capitalising on the volume of goods traded between the destinations. The carrier hopes to break even within 18 months of launching the new routes.

This expansion comes as Zimbabwe attracts over 20 foreign airlines, thanks to its growing economy, tourism sector, and open skies policy. Uganda Airlines plans to extend its reach to China and London by year-end.

Source: ATTA.     

Aviation workers’ strike impacts travel costing millions.

The brief strike at major airports in Kenya which disrupted international and domestic flights on Tuesday night, September 9, and Wednesday, September 10, left passengers stranded and cost agents and airlines millions.

The strike was triggered by objections to the government’s proposal to lease Nairobi’s Jomo Kenyatta International Airport to an Indian company. Workers felt that jobs would be lost, and that control of a Kenyan asset would be lost by Kenya.

The Kenya Association of Travel Agents (KATA) has commended both the Government and the Kenya Aviation Workers Union (KAWU) for quickly resolving the impasse and agreeing on a return-to-work formula.

However, KATA emphasized that such industrial action, with its far-reaching consequences, should never have been allowed to occur in the first place. The strike’s impact has been devastating, with the travel industry facing significant financial and operational losses.

Preliminary estimates suggest that members of KATA lost over KES200 million (R27,9m) in air ticket sales alone, excluding rebooking fees and the costs incurred by airlines in accommodating passengers who missed their flights.

“When accounting for related services such as accommodation, ground transfers, and travel insurance, the total losses could easily exceed KES500 million (R69,8m). Some international airlines flew back empty, while others have indefinitely cancelled or rescheduled flights, further disrupting operations,” KATA said.

KATA highlighted that the frustration, anxiety, and distress caused to passengers have tarnished the reputation of Nairobi as a regional aviation hub.

“The strike’s impact on Kenya’s already fragile economy cannot be overstated. KATA calls on the Government to take decisive action to ensure that the underlying issues with the workers’ union are permanently resolved, preventing any future disruptions to airport operations. Kenya simply cannot afford another crisis of this magnitude.”

Source:   Travel News

IATA and Outpayce help airlines accept account‑to‑account payments

Outpayce, a venture launched in 2023 to improve Amadeus’ travel paymens sector, has partnered with IATA to enable airlines to accept account-to-account (A2A) payments.

Recent regulations in many markets make it possible for merchants to accept payment from consumers using direct, account-to-account transfers. As airlines seek to best meet the needs of travelers and reduce the overall cost of payments, account-to-account payments are becoming very popular, and they represent a new option for travelers to pay for air tickets.

That’s why IATA and Outpayce are partnering so airlines can now accept payments made with IATA Pay through Outpayce’s Xchange Payments Platform (XPP).

IATA Pay is an alternative account-to-account form of payment for travelers to pay for air tickets purchased online by directly debiting their bank account. It leverages the new account-to-account rails and regulations developed by countries around the world such as India (UPI), the Netherlands (Ideal), Brazil (PIX) or Philippines (QR Ph). Currently available in over 30 countries, IATA Pay improves the speed and security of payments, while reducing payment acceptance costs.

When a traveler reaches checkout on an airline’s website the new account-to-account payment service allows them to select their bank or scan a QR code depending on the country. IATA uses the payment and bank details or the QR code’s approval to request a transfer from the passenger’s account and the funds are transferred using the banking rails. IATA settles the funds with the airline the following day.

Juan Antonio Rodriguez, Director Financial Settlement Operations, IATA said: “The trend towards account-to-account payments is gaining more momentum. It provides a seamless experience for passengers and provides an attractive option for airlines to lower the cost of payment acceptance. Through Outpayce, airlines using XPP can begin to accept IATA Pay while still benefiting from XPP’s powerful orchestration, analytics and reporting capabilities.”

Anna Isabel Bengzon, Chief Financial Officer, Philippine Airlines said: “We are pleased to now accept IATA Pay in the Philippines. It will provide our passengers a more convenient and secure way of paying via QR code using their digital wallets, which is highly prevalent in the country, or through their bank accounts. Outpayce’s XPP system helps us to intelligently accept a wide range of payment methods used by travelers across the international markets we serve. Moreover, we can access various payment methods and partners through XPP, with detailed analytics on the performance of payment flows and back-end reconciliation support.”

Jean-Christophe Lacour, SVP and Head of Product Management & Delivery, Outpayce added: “We’re committed to helping travel companies accept the widest possible range of payment methods through a single connection to XPP and IATA Pay represents an interesting new option for the industry. By making it easier for partners to connect to XPP using self-service APIs we intend to broaden this choice even further.”

IATA is one of the first partners to connect to Outpayce’s Xchange Payment Platform using its new self-service APIs, being piloted in 2024. The addition of self-service APIs helps to open XPP, making it easier for any payments or fintech company to connect its services, which increases choice for travel companies and further optimizes payment orchestration.

Source:  Outpayce  

African Airlines’ Passenger Revenue Jump by 8% in Q1 2024 – AFRAA

The world airline industry has maintained its trajectory of recovery during the first quarter of 2024 with a rebound in passenger demand, according to African Airlines Association (AFRAA).

African airlines carried more international traffic during the first quarter of 2024, around 33% of the total traffic. This is a seasonal effect due to the Easter Holiday usually rise during Q1, particularly in March.

The Intra-African traffic represented 30% whereas domestic traffic was 37% during this quarter.

Passenger Revenue in the first quarter 2024 increased by 8% as compared to passenger Revenue in the first quarter 2023.

International traffic is dominated by the intra-African, with 44% in Q1 2024. Outside the continent, Europe is the first destination region of African airlines.

South Africa is the dominant market in terms of domestic traffic in Africa; it recorded 5 routes amongst top 10 in this first quarter 2024. Egypt, Kenya, and Nigeria also have domestic routes among the ten busiest.

The non-domestic traffic is dominating for intra-African traffic especially between Kenya, Tanzania, Ethiopia, Uganda, representing 40% of the continental traffic.

The ten busiest Intra-African routes are generally within Southern and Northern Africa. Only one Eastern (Nairobi – Entebbe) and Western African route (Accra – Lagos) appeared in the top 10 during the first quarter 2024.

Addis Ababa airport handled around 192 thousand tons of cargo during Q1 2024. Johannesburg and Nairobi followed with 121 thousand and 112 thousand tons, respectively. Two West and East African airports are part of the top 10: Lagos ,Dakar, Nairobi and Entebbe.

During the first quarter of 2024, among the 54 countries in the African continent, 7 Countries have direct flights to more than 20 African countries, an increase compared to the first quarter 2023 where 4 countries had direct flights toward other countries. Ethiopia is leading with direct services to other countries within Africa.

African Airlines Association (AFRAA) estimates that passenger traffic carried by African operators in 2024 will be about 98 million.

The African Airlines Association is a trade association of African airlines, and is headquartered in Nairobi, Kenya. The primary purpose of AFRAA is to establish and facilitate co-operation between African airlines.

50 airlines comprising of all the major intercontinental African operators and the Association’s members represent over 85% of total international traffic carried by all African airlines.

Source: Kenyan Wallstreet.

EAC Urges Partner States to Fast Track Liberalizing Air Transport Market.

The East African Community (EAC) has urged its partner states to fast track regulations to liberalise the air transport market to boost regional integration and economic growth.

“An integrated air transport market is essential for the development of our region. By removing barriers to air travel, we can enhance competitiveness and attract investment in the region,” The East African Community (EAC) Deputy Secretary General in charge of Infrastructure, Productive, Social and Political Sectors, Andrea Aguer Ariik, said during the 19th Meeting of Director Generals of Civil Aviation and Airports Authorities.

The liberalisation of the market in the region, which has been in the plans since 2006, is expected to lower the cost of air fares, stimulate demand for air traffic, connectivity, increase operation efficiency, reduce the flying time and support the expansion of air transport capacities and the regional economy.

Among other things, the EAC is urging partner states to consider harmonising regulatory fee and charges, and to designate the regional air transport market as domestic for registered air operators in the region.

Only Rwanda and Burundi have submitted their reports on the draft EAC Air Transport Market (Liberalisation) Regulations. The regulations are expected to be submitted to the 19th Meeting of EAC Sectoral Council on Transport, Communication and Meteorology (SC-TCM) for adoption.

Once adopted, and then ratified by Partner States, the air transport market will be liberalised. States will then negotiate bilateral and multilateral arrangements.

Source: Kenyan Wallstreet.