KAA drives change to help unlock Africa’s potential

Kenya Airports Authority (KAA) is taking forward-looking measures, needs-based actions and overarching guidelines such as digitization, technology solutions and sustainability to enhance connectivity and strengthen the Nairobi hub while effectively managing competition.

Managing Director of KAA, Alex Gitari, said: “The strategy highlights the priority placed on route development and actively collaborating with airlines to establish new air connections and increase frequencies on existing routes. This approach recognizes the importance of attracting more airlines and passengers to solidify Nairobi’s position as a key gateway to Africa and a vital link in the global aviation network.”

KAA has taken several measures boost its post pandemic business recovery including friendly health and safety protocols to ensuring passenger confidence and maintaining a safe travel environment.

Gitari underlined those collaborative efforts help streamline operations, address challenges, and create a unified approach to revive the industry.

He said that KAA continues to invest in infrastructure development and expansion projects to meet future demand and enhance passenger experience.

“KAA has formulated a comprehensive development plan for various airports in the country. The strategy includes the construction of passenger terminal buildings at multiple airports, including Jomo Kenyatta International Airport (JKIA), Wilson, Ukunda, Migori, Kitale, and Nanyuki. Additionally, there are plans for the development of JKIA’s second runway, taxiway, airfield lighting system, and an aviation rescue and firefighting centre”, Gitari said.

Moi International Airport will undergo ground and slope stabilization for environmental and safety enhancement, while Wilson Airport will see improvements to its runway and apron. Eldoret International Airport is set for a runway extension and cargo apron expansion, and Isiolo Airport will undergo runway and apron extension.

Other priorities include the installation of perimeter and security fencing at JKIA, water reticulation at the airport, construction of parking silos at JKIA and Wilson, and the establishment of solar farms at JKIA, Kisumu International Airport (KIA), Eldoret International Airport (EIA), Wajir Airport, and Isiolo Airport. Additionally, land acquisition efforts are underway in Malindi and Ukunda.

“These development projects reflect KAA’s commitment to improving infrastructure, enhancing safety, and expanding operational capabilities at various airports throughout Kenya and connect efficiently to the aviation global circuit. “

KAA has also invested in digital solutions to streamline processes and reduce physical contact points through online check-in, touchless technologies at the new rehabilitated T1BC, and self-service kiosks at JKIA.

“As a prominent player in the African aviation industry, Kenya will continue to play a leading role in unlocking the continent’s possibilities by actively supporting and participating in the implementation of SAATM.”

“By prioritizing the expansion of air connectivity, Kenya will foster the growth of businesses, facilitate increased trade, promote tourism, and create ample travel opportunities for the burgeoning middle class and working population in Africa”, Gitari said. 

Kenya Airports Authority is also firmly committed to supporting the realization of SAATM’s objectives and actively engaging with stakeholders to advocate for and amplify the benefits that SAATM can bring to the continent as well as exploring opportunities to diversify revenue streams beyond traditional aviation activities and providing training and consultancy services for capacity building within Africa.

KAA is also focusing on expanding its cargo and logistics capabilities to capitalize on the growing demand for efficient supply chain solutions. 

The growth of e-commerce which has accelerated during the pandemic is driving increased demand for air cargo services.

Source: Times Aerospace.  

Kenya, Somalia sign bilateral air services agreement

Kenya and Somalia have signed a bilateral air services agreement handing a major boost to Kenya Airways that has been raring to launch flights to the country.

Transport Cabinet Secretary Kipchumba Murkomen said the deal now ‘opens’ the airspaces of the two countries for direct flights.

“This agreement means that airlines will be designated to fly to Mogadishu and Nairobi…but, this will depend on the designations that will be done by respective ministries across the country,” Murkomen said.

Speaking Wednesday during the signing of the agreement which followed months of negotiations with the Somalian authorities, the CS noted this will not only open door for the national carrier but also other airlines.

KQ, Murkomen stated, will now be required to write to the ministry for it to get the necessary air transport approvals.

The deal, he noted, with see the two countries support each other in terms of safety and security in the two airspaces.

It is anchored on traffic rights, frequency and capacity, code-share and the Technical Cooperation Agreement (TCA) between the countries.

“It makes us operate the way other civilised nations operate under the International Civil Aviation Authority and the Chicago convention that defines our relationship as countries on the use of airspace,” he added.

Kenya is a signatory to several air services agreements that facilitates how it designates airlines coming to the country.

The agreement states that on the frequency and capacity, the designated airlines of each party may operate seven weekly frequencies for passenger flights on specified routes while designated airlines operating cargo flights may operate unlimited frequencies. 

Technical cooperatives require that the Kenya civil aviation authority (KCAA) and Somali enhance cooperation on capacity building, personnel training and experience sharing. 

Kenya’s main exports to Somalia include miraa.

KQ’s approval to fly to Mogadishu has been pending for years now.

Somalia initially protested over Nairobi’s strict aviation rules that required stopovers in Wajir, in northeastern Kenya, for security checks.

The carrier suspended its plans to launch the flights to Hargeisa in Somaliland in May 2021 over what it termed as a lack of requisite “clearance and approvals”.

“We currently do not have any flights in operation, contrary to information circulating on social media,” Kenya Airways said in a statement.

Source: The Star

African Nations Sign Aviation Development Agreements With Russia

Russia-Africa negotiations have produced positive results for the respective aviation sectors.

Russia has agreed to develop aviation in Africa and is boosting its cooperation with African states, including Ethiopia and Tanzania, by signing new air services agreements. Russian authorities met with various African stakeholders at the second Russia-Africa summit in St. Petersburg.

Russia-Ethiopia aviation development

During the summit, Russia’s Deputy Minister of Transport Igor Chalik and Ethiopia’s Deputy Minister of Foreign Affairs signed an agreement to develop the air transport line between the two countries. The states previously had an air communication agreement dated March 26, 1977, which will be terminated under the new deal.

The newly signed agreement aims to establish efficient and regular air transport services between Russia and Ethiopia, to boost trade and economic development. Additionally, it includes enacting legislation regarding national carriers, recognition of airworthiness certificates, and cooperation in ensuring flight safety standards in line with International Civil Aviation Organization (ICAO) standards.

Ethiopia’s flag carrier Ethiopian Airlines already has a regular service to and from Russia. It operates four weekly nonstop flights from Addis Ababa Bole International Airport (ADD) to Moscow Domodedovo (DME) with the Boeing 787 Dreamliner. Conversely, no Russian carriers are operating flights on this route.

Agreement with Tanzania

Russian authorities have also negotiated a new deal with Tanzania to strengthen their aviation ties and rejuvenate air transport activity in the post-pandemic era. Following a successful meeting in Moscow, the two governments negotiated a new Bilateral Air Services Agreement (BASA), noting that the previous ones had been severely affected by the pandemic.

According to the Tanzania Civil Aviation Authority (TCAA), the new agreements will give the designated airlines of Tanzania access to three entry points in Russia, namely Moscow, St Petersburg, and Yekaterinburg. This is a noteworthy improvement from the previous BASA, which only allowed access to the capital.

Similarly, the designated Russian carriers will be given access to three entry points in Tanzania, i.e., Dar es Salaam (DAR), Zanzibar (ZNZ), and Kilimanjaro (JRO). The negotiations also included provisions for codesharing, as both parties highlighted its importance for maximizing airline yields.

Traffic rights

Beyond codesharing, the negotiations also involved discussions on the employment of fifth freedom traffic rights by Russia and Tanzania’s designated airlines. Under the newly agreed terms, their carriers can fly to both countries and on to a third country upon mutual agreement by the respective civil aviation authorities.

Despite the current air services agreement, no airlines are operating commercial flights between these destinations. During the discussions, Russian authorities suggested a requirement for filing fares before the designated airlines can commence operations on the routes, but Tanzania heavily contested this, saying that it is “impracticable.” However, an agreement was reached, and the TCAA said in a statement;

As a result of the successful negotiations, a Memorandum of Understanding (MoU) was signed by the Heads of Delegation from both parties. The final signing of the BASA will occur once the necessary institutional procedures of both Governments have been completed.”

Airline representatives from Air Tanzania Company Limited (ATCL) and Precision Air were among the Tanzanian delegation that flew to Moscow. ATCL Managing Director Ladislaus Matindi told The Citizen that the new agreement could provide more business opportunities, and the company will assess the market trends before deciding to fly to Russia.

Source: Simple Flying

The $2 billion Rwandan airport that could help African aviation take off

CNN — Some 40 kilometers south of the Rwandan capital of Kigali in the Bugesera District, construction vehicles and high-visibility vests swarm across an arid expanse of land.

Here, two strips of tarmac are the cornerstone of a $2 billion airport, whose developers want it to be the jewel in the crown of Africa’s aviation industry.

Slated for completion in 2026, the new facility will boast a 130,000-square-meter main terminal building capable of accommodating 8 million passengers a year, a figure expected to rise to over 14 million in the following decades. Adjacent will be a dedicated cargo terminal, capable of accommodating 150,000 tons of cargo a year.

It’s a significant upgrade on the existing Kigali International Airport, which is set to remain operational for special arrivals, some chartered flights, and a pilot training school.

Pre-pandemic, the airport was shuttling close to 1 million passengers annually, but its geographic limitations – perched on top of a small hill and surrounded by human settlements – meant a move was necessary to allow expansion.

“I’m amazed, it’s like a dream come true to see the impact and magnitude of this project to the population,” said Jules Ndenga, CEO of Aviation Travel and Logistics Holding, the Rwandan government-owned company that is overseeing construction.

“We are really impassioned to see the efforts completed and starting operations.”

Qatar Airways will have a 60% ownership of the new airport. The Middle Eastern airline will also acquire 49% of shares in the African country’s flag carrier airline, Rwandair, offering access to over 65 locations around the world.

It is a partnership that intended to help Rwanda – landlocked in the center of Africa – achieve its aim of becoming the continent’s centerpiece for air travel. “The main objective of this effort is basically to make sure that Rwanda becomes an African hub where everyone will be transiting either for tourism, but also for business and different industries,” Ndenga added.

“The impact will be in terms of providing a platform for all the economic life of the country to develop sustainability. We see that as not only an impact on the economy but in the neighborhood … we know that this area will become a satellite city of the city center.”

Connection complications

Yet benefits could spread far beyond Rwanda’s borders. The arrival of the new airport will help chip away at the critical problem of a fragmented network of routes that means passengers often have to travel via Europe or the Middle East when flying between African countries.

A lack of connections across the continent is grounding Africa’s untapped potential in the aviation business. Despite boasting 16.75% of the world’s population with 1.4 billion people, the continent has less than 4% of the global air market, according to a 2018 report by the Single African Air Transport Market – an initiative set up by the African Union.

For RwandAir CEO Yvonne Manzi Makolo, the problem of connectivity presents the “biggest challenge” to the African aviation industry.

“The continent is huge, it’s vast, but it’s difficult and unpredictable traveling within it … and it’s extremely expensive,” Makolo said.

“What what’s making it more challenging is the conditions of operating within the African continent. The cost of operations is so much more, whether it’s airport fees, whether it’s ground handling, parking, overflight (flying from one country’s airspace to another’s) – everything is much more expensive. Sometimes up to 50% more than in the Middle East and Europe, which makes the ticket prices even more expensive and makes (some) routes unviable.”

Solutions

But solutions are touching down, starting with the Single African Air Transport Market (SAATM).

First proposed in 2018, if implemented the policy would create a single market for African aviation, facilitating the free movement of people, goods, and services. The continent currently operates under bilateral air service agreements, a highly restrictive policy that makes it difficult to open new routes.

So far, just 35 of the 55 African states have signed up for SAATM. Secretary General of the African Airlines Association Abderahmane Berthe, heavily involved in the policy’s implementation, believes more will follow.

“Since 2018 all the stakeholders of the industry are working to make it happen,” Berthe said.

“Liberalization is not an easy subject – even in other regions, it took a lot of time. So, we are working on it. What is missing is the willingness of states to really implement it.”

A new single market would dovetail with the African Continental Free Trade Area (AfCFTA). Coming into force in 2021, AfCFTA eliminates tariffs and other non-tariff barriers to allow easier movement of trade and people between the continent’s countries.

It is set to increase intra-African trade to an estimated 52%, according to Kenya Airways CEO Allan Kilavuka, who plans to work with other African airlines – such as South African Airways – to unite a “fragmented” industry.

“We have so many airlines in the continent. Most of them are not viable, truth be told,” Kilavuka said.

“We need to consolidate, so that you create bigger entities which are more economical from a scale perspective, and they can respond to high costs. They can together talk to suppliers and get more bargains when it comes to purchases, bringing down the unit cost of operation. Because of scale, they can then open up the African continent a lot more.

“The fragmented state which we are in is not going to make it.”

Source: CNN

Biometrics promises to shorten waiting times at airports

As summer travel picks up, the pressing need to reduce waiting times for services like security and immigration checks at airports or even when picking up rental cars comes into focus. Undoubtedly, waiting in long queues for any procedure is one of the most frustrating moments for travellers.

The COVID-19 pandemic has also contributed to accelerating the adoption of contactless systems at airports, including biometric processing at key touchpoints such as immigration, security control, and check-in. This transition to touchless technology aims to minimize queuing and reduce overall airport wait times while ensuring a safer and more efficient travel experience.

According to IATA’s 2022 Global Passenger Survey (GPS), biometrics has established itself as a groundbreaking innovation in the travel industry, offering a promising solution to the perennial problem of long queues at airports. With an impressive 88% of passengers, who have used this service, expressing satisfaction with the overall biometric process, this technology has the potential to revolutionize the way we travel.

The survey also reveals that 75% of passengers are willing to use technologies employing biometrics as an alternative to conventional passports or boarding passes. This growing preference for biometric identification is driven by the desire to save time and avoid the hassle of queuing. In fact, 33% of passengers would prefer to complete immigration procedures before arriving at the airport, while 44% would like to expedite the check-in process.

Imaginable are situations where a simple identification document is presented at a terminal, and the system automatically verifies all the data. The necessary information is then made available to security personnel, and the journey can continue. This significantly speeds up the process and is also applicable in other areas, such as picking up a rental car or a key for a vacation rental.

At the forefront of this technological revolution is Signicat, a leading provider of digital identity. Their years of expertise in the field enable the optimization of processes such as identity verification and authentication. This, in turn, means faster, smoother, and safer services for both travellers and airports themselves.

Another notable advancement in biometric technology is video identification. Traditionally, the verification of passports was manually carried out by security personnel or immigration officers at airports, who checked the authenticity of the document. Biometrics improves this process, making it both safer and more efficient. The technology precisely verifies the authenticity of a passport, detects manipulations or forgeries, and significantly reduces processing time without compromising security.

Despite all the benefits, passengers have legitimate concerns regarding the use of biometric data. According to the survey, the biggest concerns are data loss due to security breaches, who has access to the data, and general apprehensions regarding the handling and storage of personal information. Demands for continuously improved measures to protect data and its access are a direct response from passengers.

The fear of data and information security is not unique to the travel industry but is a common concern among consumers. Signicat’s annual “Battle to Onboard” report discovered that 92% of respondents are worried about the amount of data they share with their bank when completing an application.

It is crucial to continue educating users about how these new technologies work and why they are important, both through local legislation in each country and at a global level. In Europe, for example, the protection of personal information and data privacy will always remain a high priority, regardless of the industry.

With the growing acceptance of biometric technology, airports have the opportunity to enhance the entire travel experience, leading to increased comfort and security. With companies like Signicat and other industry leaders driving innovations in this area, the times of never-ending queues and frustrating identity verification processes could soon become a thing of the past.

Source: Travel Daily Media

DER Touristik and Lufthansa Group Partner to Expand Sustainable Aviation Fuel Usage in Tourism

In order to meet the challenges in the area of climate and environmental protection, DER Touristik and the Lufthansa Group are expanding their cooperation: As part of a strategic partnership, DER Touristik is the first major tour operator to purchase Sustainable Aviation Fuel (SAF) from the Lufthansa Group.
This consists of biogenic residues such as used cooking oils and reduces CO₂ emissions by around 80 percent compared to conventional kerosene. With the SAF it has purchased, DER Touristik will offer its guests more climate-friendly air travel using SAF at no extra charge. The costs for the SAF are covered by the tour operator.

Specifically, DER Touristik uses the SAF purchased from the Lufthansa Group to improve the carbon footprint of selected products. These tours will be presented in the DERTOUR Magalog – a mixture of magazine and catalog – to be published in September 2023 with the title “Conscious Travel”. For example, an SAF share of 20 percent will be fed into the flight system for the Lufthansa flights of the 2024 round trips presented in the Magalog. This will reduce the passenger’s individual flight-related CO₂ emissions. These round trips include two individual DERTOUR trips to Ireland, where guests travel locally by public transportation, as well as five guided small-group trips to Albena on Bulgaria’s Black Sea coast, Menorca, Andalusia, Madeira, and Lisbon and Porto. By the end of 2024, selected Lufthansa Group flights booked in addition to one of the sustainably certified hotels in the new DERTOUR Magalog will also feed 20 percent SAF into the flight system at DER Touristik’s expense. In addition, REWE Reisen in Germany and Billa Reisen in Austria will each put together two more sustainable vacation offers with Lufthansa Group flights in Europe in the fall of 2023.

As part of the strategic partnership between DER Touristik and the Lufthansa Group, various other measures are also planned that will sensitize vacationers and travel agency experts to the topic of SAF and make it tangible for them, including an expert study trip to Ireland for travel agencies. Last spring, the Lufthansa Group and DER Touristik had already jointly launched more sustainable travel offers in an initial test run.

A crucial key to more sustainable flying

“We are very pleased to have DER Touristik as a cooperation partner at our side who is committed to the sustainable transformation of the travel industry, who is breaking new ground together with us and who is sensitizing its customers to forward-looking travel offers,” says Frank Naeve, Senior Vice President Global Markets & Stations Lufthansa Group. “With our airlines, we want to connect people, cultures and economies in the most sustainable way possible, reduce the environmental impact of flying and use required resources as efficiently as possible. The use of Sustainable Aviation Fuel is a crucial key to more sustainable flying in this regard.”

“Our goal is to make tourism more climate-friendly and reduce emissions from vacation travel. A key lever in this is flying,” explains Dr. Ingo Burmester, CEO DER Touristik Central Europe. “At the same time, we are investing in the shift toward a lower-emission airline industry with our commitment. As a tour operator and flight broker, we see it as our responsibility to get involved in this area. As an industry, we can only achieve change by joining forces and standing shoulder to shoulder with long-standing, trustworthy partners such as the Lufthansa Group.”

The Lufthansa Group has set itself ambitious climate protection goals and aims to achieve a neutral CO₂ balance by 2050. Already by 2030, the Lufthansa Group wants to halve its net CO₂ emissions compared to 2019 through reduction and compensation measures. The reduction target until 2030 was validated by the independent Science Based Targets initiative (SBTi) in August 2022. The Lufthansa Group was the first airline group in Europe with a science-based CO₂ reduction target in line with the goals of the 2015 Paris Climate Agreement. For effective climate protection, the Lufthansa Group is focusing in particular on accelerated fleet modernization, the use of SAF, the continuous optimization of flight operations, and offers for its private travelers and corporate customers to make a flight or the transport of cargo more sustainable. In addition, the Lufthansa Group has been actively supporting global climate and weather research for many years.

Source: breakingtravelnews

Air travel in Africa: Costly flights hold the continent back

Flying within Africa is more expensive than just about anywhere else in the world. Travellers pay higher ticket prices and more tax.

It is often cheaper to fly to another continent than to another African country.

For a quick comparison, flying from the German capital, Berlin, to Turkey’s biggest city, Istanbul, will probably set you back around $150 (£120) for a direct flight taking less than three hours.

But flying a similar distance, say between Kinshasa, capital of the Democratic Republic of Congo, and Nigeria’s biggest city, Lagos, you will be paying anything between $500 and $850, with at least one change, taking up to 20 hours.

This makes doing business within Africa incredibly difficult, and expensive – and it is not just elite travellers that are affected.

The International Air Transport Association (IATA) – the global trade body representing some 300 airlines which make up about 83% of world air traffic – argues that if just 12 key countries in Africa worked together to improve connectivity and opened up their markets, it would create 155,000 jobs and boost those countries’ Gross Domestic Product (GDP) by more than $1.3bn.

“Aviation contributes directly to the GDP in every country. It generates work and it activates the economy,” says Kamil al-Awadhi, IATA’s regional vice-president for Africa and the Middle East.

Adefolake Adeyeye, an assistant professor of commercial law at the UK’s Durham University, agrees that Africa as a whole is missing out because of its poor air service.

“It’s been shown that air transport does boost the economy. As we’ve seen in other continents, budget airlines can improve connectivity and cost, which boosts tourism, which then creates many more jobs,” she says.

The poor quality of road networks and lack of railways in many African countries often makes air transport the practical choice for cargo too.

The climate emergency, which has severely impacted Africa, means everyone needs to be more careful about their carbon footprint and should aim to fly a lot less.

But even though around 18% of the world’s population lives in Africa, it accounts for less than 2% of global air travel and, according to the UN’s Environment Programme, just 3.8% of global greenhouse gas emissions. This is in contrast to 19% from the US and 23% from China.

Africa may be rich in minerals and natural resources, but of the 46 nations on the UN’s Least Developed Countries list, 33 are on the continent, and poverty continues to be the biggest daily threat for millions of people on the continent.

But there is also a growing middle-class who could potentially travel by air if the tickets were priced at similar levels to Europe or elsewhere.

Every government in Africa wants to see their flag on the tail of an aircraft at Heathrow or JFK”, Zemedeneh Negatu, Global chairman of Fairfax Africa Fund.

African states have been trying for decades to integrate the aviation sector, but they haven’t been successful, yet.

“There needs to be a coherent strategy by Africa to address the issue of its poor air service if they want to transform Africa’s economies,” says Zemedeneh Negatu, the global chairman of US-based investment firm Fairfax Africa Fund.

He says that flights within Africa are still structured around cumbersome bilateral agreements from one country to the next, and that most flag-carrying state airlines in Africa barely cover their costs, while some even run at a loss.

“Every government in Africa wants to see their flag on the tail of an aircraft at Heathrow or JFK airport, but African governments need to realise that stand alone carriers are not viable.”

Mr Zemedeneh argues that African airlines should take inspiration from Europe and form major partnerships, such as between flag-carriers Air France and KLM of The Netherlands, and the Anglo-Spanish International Airlines Group (IAG) formed between British Airways and Iberia.

He says even in the rich market of Europe, conglomeration is the way forward for airliners to survive, and provide a cheaper more reliable service.

The current system in Africa is very fragmented, and although 35 countries are signed up to the Single African Air Transport Market, an African Union (AU) initiative to free up the skies to African airlines and bring down costs, it could be years before it’s implemented.

IATA’s Mr Awadhi says governments are reluctant to work together.

“There is a hard-headedness where each state thinks they know how to handle it better and will stick to their remedies even when they are not very effective,” he says.

“In the end it’s a business and there is a level of protectionism that starts to hurt the aviation industry. Then there is no benefit to having your own national carrier.”

There is one notable exception in Africa of an airline that is absolutely thriving, and that could provide a blueprint for others to copy – Ethiopian Airlines.

Just over 15 years ago the company employed about 4,000 people. Now that figure is over 17,000.

It is state-owned but run entirely as a commercial venture without government interference.

It has more than doubled the size of its fleet of cargo and passenger planes and has made Addis Ababa a regional hub, driving foreign currency into the Ethiopian capital, and boosting the country’s service industry.

At the turn of the millennium Ethiopia was one of the poorest countries in the world, now it’s one of the fastest growing economies.

Mr Zemedeneh, an Ethiopian-American who played a key role as an adviser to Ethiopian Airlines as it developed its strategy, says Ethiopian Airlines has played a part in that boom.

“Ethiopian Airlines generates millions of dollars in hard currency for the country, and it makes every Ethiopian proud that they have been able to create one of the most successful indigenous African-owned, African-operated, multinational companies,” he adds.

African travellers will be hoping these kinds of commercial successes will ultimately impact their airfares, bringing them down more in line with Europe or Asia – and that they can finally get to where they want to go more quickly and cheaply.

Source: BBC

Air Cargo demand remains weak in May

IATA has released data for May 2023 global air cargo markets showing weak market conditions.

Gobal demand, measured in cargo tonne-kilometers (CTKs), fell 5.2% compared to May 2022 (-6.0% for international operations).

Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 14.5% compared to May 2022, primarily driven by belly capacity which increases as demand in the passenger business recovers. Capacity is now 5.9% above May 2019 (pre-pandemic) levels.

Key factors influencing demand include:

The global manufacturing Purchasing Managers Index (PMI) indicates an annual contraction of 1.4% in new export orders and a decrease of 5.2% year-on-year in production PMI. This suggests a cooling in global manufacturing demand.

Global goods trade decreased by 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trading conditions appeared to favour maritime cargo as demand for container shipping contracted by 0.2% while air cargo demand weakened by 6.3% year-on-year.  

The global supplier delivery time PMI increased to 54.5 in May, up from its low of 35 in October 2021, indicating shorter delivery times and some relief for supply chains. However, this is also a sign of weaker global goods trade demand.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness. The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo,” said Willie Walsh, IATA’s director general.

May Regional Performance

Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023. This was a slight improvement in performance compared to the previous month (-6.7%). Capacity increased 15.6% compared to May 2022.

African airlines posted a 2.4% decrease in demand compared to May 2022. This was a decline in performance compared to the previous month (-0.9%). Notably, the growth on the Africa to Asia trade route slowed significantly in May from 18.5% in April to 11.0%, possibly due to the impact of the conflict in Sudan since mid-April. Capacity in May was up 9.2% compared to the same month in 2022. 

Source: Times Aerospace

IATA Recognizes SAATM As The Key To Unlocking Africa’s Aviation Potential

The International Air Transport Association (IATA) recognizes the full implementation of the Single African Air Transport Market (SAATM) as the key to realizing the potential of aviation in Africa.

Although SAATM has been gaining pace in recent years, it has not been fully appreciated on a continental level. To date, 34 of the 54 African states have signed up for SAATM, with Uganda considering joining later this year. These 34 countries represent about 80% of the existing aviation market in Africa.

Liberalization of the air transport market

IATA has launched the Focus Africa initiative to enhance air travel’s contribution to Africa’s socio-economic development. It seeks to develop a more secure, reliable, safer, and well-connected continent by unlocking the commercial and economic opportunities offered by aviation.

The initiative will focus on six critical areas, including connectivity. Through this, it will promote the liberalization of intra-Africa market access by implementing SAATM. IATA has predicted that if 12 major countries opened their markets and increased connectivity, up to 155,000 jobs and $1.3 billion in annual revenue would be created in those countries.

Various stakeholders, including airlines, airports, civil aviation authorities, and executing agencies, have come together to promote the liberalization of African markets. Open skies will benefit all countries involved, so now it is time for the decision-makers to come onboard to ensure the effective implementation of SAATM.

 

The importance of the fifth-freedom

Given the vastness of the African continent, air travel is the best way to move people, goods, and services across all regions. About 85% of air travel around the continent is directly from point to point, while the remaining 15% is fifth freedom.

This significantly limits connectivity in Africa, with some airlines not having access to important markets, and the fifth freedom is the key to stimulating the sector’s growth. The African Civil Aviation Commission (AFCAC) Secretary General Adefunke Adeyemi said during the Focus Africa Conference;

“YD grants first to fifth freedoms. It is the combination of these freedoms that makes the traffic flow, and the fifth is the trigger. The fifth freedom is what stimulates traffic.”

According to the Yamoussoukro Declaration (YD), states grant each other the free exercise of the rights of the first to fifth freedoms of the skies on scheduled and non-scheduled flights by an eligible airline to and from their respective territories. However, some states have denied several airlines the right to freedom fights.

 

Effective implementation of SAATM

AFCAC is the executing agency of the Single African Air Transport Market, facilitating the collaboration of African states toward a sustainable air transport market. Today, 23 of the SAATM signatories have also agreed to an application memorandum to remove the restrictions provided for in the Bilateral Air Services Agreement (BASA), contrary to YD.

Advocacy and continuous communication to all stakeholders on the benefits of open skies is a significant step toward ensuring the effective implementation of SAATM. The Airlines Association of Southern Africa (AASA), AFCAC, and other stakeholders want to showcase to states the benefits of having a robust aviation sector, with Ethiopian Airlines being the best example.

Under a new approach, AFCAC has also launched an initiative called the SAATM Pilot Implementation Project, which looks at countries with sufficient parameters to move forward with the implementation of SAATM. So far, about 20 countries have agreed to accelerate the implementation of SAATM.

It is challenging to deal with 54 countries as a united front, so these countries have been broken down into clusters. Adefunke Adeyemi said that one of the most important things is for the countries in these clusters to grant each other market access and fifth freedoms with unrestricted capacity and frequency.

What is slowing down the full implementation of SAATM?

For SAATM to thrive, African states need to facilitate the movement of people and goods by opening up their skies, removing strict visa requirements, and granting foreign airlines access to their markets.

Sometimes airlines apply for fifth freedom rights, and even if the right is granted, they face other impediments, including very high landing costs, prevention from opening local offices, and high inspection costs, to mention a few. Additionally, some states deny fifth freedom rights to more prominent airlines in fear of the competition it gives the national carrier.

SAATM has also not been fully realized because several governments do not prioritize aviation. States have not realized the potential of a thriving air transport sector, so they will be committed to other industries before they invest in aviation. AASA Chief Executive Officer Aaron Munetsi said;

“We must understand some of the major challenges we face. One of the major challenges is that our countries just don’t have the economic power to be able to say that we want to take part of the resources we have and focus only on aviation when schools and hospitals need to be built and when farming and everything else needs to be dealt with.”

However, he added that revenue from airlines and air transport should not be used for other things but to develop airports, air navigation systems, and the entire aviation market. IATA is ready to work with global stakeholders to ensure that SAATM is fully realized and implemented.

Source: Simple Flying

IATA Joins Forces With FAA, ICAO & More To Improve Aviation Safety In Africa.

The International Air Transport Association (IATA) is launching a new program to enhance safety in the aviation industry. The Collaborative Aviation Safety Improvement Program (CASIP) will significantly reduce the rate of accidents and fatal incidents across the continent.

The program is part of the IATA Focus Africa initiative and was first announced in Addis Ababa in the presence of most African aviation stakeholders. Focus Africa is meant to enhance aviation’s contribution to the continent’s development, and safety is one of the critical areas that must be addressed.

Partnering for safer skies

Although air travel is the safest mode of transport, much work must be done to make the African skies safer. CASIP launch partners include the International Civil Aviation Organization (ICAO), the African Civil Aviation Commission (AFCAC), the US Federal Aviation Administration (FAA), the Airlines Association of Southern Africa (AASA), and Boeing.

Together, these partners will immediately address the most significant safety concerns and pool their resources to ensure air travel’s safety, reliability, and efficiency on the continent. The African aviation sector is expected to grow rapidly in the next decade, which similarly increases the risk of air incidents.

CASIP partners will use their safety management systems to identify some of these risks, collaboratively develop solutions and analyze the data to inform their decisions. The benefits of enhanced safety will be realized across the economies and societies of the continent. IATA Director General Willie Walsh said;

“Improving aviation safety will play an important role in Africa’s overall development. Safe, efficient, and reliable air connectivity is a major driving contribution to the UN’s Sustainable Development Goals. In that sense, CASIP will make it clear to governments across the continent that aviation must be prioritized as an integral part of national development strategies. With such broad benefits at stake, we hope that other parties will be encouraged to join the CASIP effort”

Safety enhancement involves all stakeholders, including regulatory authorities, air navigation service providers, airline operators, and airport managers, to mention a few. CASIP allows them to unite and ensure safer skies for Africa.

Following global standards

An essential step towards safety improvement is the effective use of global standards for safety. At the government level, an effective measure is the implementation of the ICAO Standards and Recommended Practises (SARPs).

These are intended to assist states in managing aviation safety risks in line with the service providers’ implementation of safety management systems. Data from 2022 shows that only 28 of the 54 African nations reached an effective implementation rate for ICAO SARPs of at least 60%, leaving a lot of room for improvement.

One of the 28 countries is South Africa, which has one of the highest safety standards in the world. The country recently went through an ICAO Universal Safety Oversight Audit Program (USOAP) and received an impressive, effective implementation score of 92%.

This is a 4.6% increase from the last audit five years ago, highlighting the South African Civil Aviation Authority’s (SACAA) commitment to continual safety enhancements.

Ensuring organizational safety

While working to improve safety on the continent, CASIP partners will identify deficiencies in operational safety and implement corrective plans. Additionally, they will launch safety training programs around the continent and make safety-related data available to decision-makers to ensure efficient accident and incident reporting.

Accident reports have proven that poor safety culture in an organization increases safety risks and the probability of severe incidents. IATA has identified that enabling an organizational safety culture requires the application of all employees, starting with the leaders. Willie Walsh added;

“Improving safety performance is a priority for Africa. And we don’t need to reinvent the wheel to deliver the needed results. Collaborative safety teams in Latin America have demonstrated that safety improves when government and industry work together to implement global standards. By working together, the partners will pool resources to have a greater impact on areas where risk can be reduced, leading to measurable improvements in safety.”

The program will be followed at every organizational level and eventually in all African regions. About the partnership, Boeing Director of Safety and Regulatory Affairs, Middle East and Africa Akachi Iroezi said, “From the OEM perspective, there are certain aspects of learning and improvement that we get from working together with the wider industry, and those cannot be discounted.”

SOURCE: Simpleflying