·
Liberalization of Air
Transport in the EAC Contributes US$ 202 Million per annum in GDP.
Nairobi, Kenya:
12th May, 2017, One of the factors contributing to the slow take-up of
Yamoussoukro Decision (YD) principles is a lack of clear and specific
information regarding the impacts of enacting Air Transport liberalization
hence, the East African Business Council (EABC) and the EAC Secretariat
commissioned a study on the Costs and
Benefits of Open Skies in the East African Community understand the impact
of implementing the YD in East Africa.
The study estimates that
liberalization between the five EAC countries could result in an additional
46,320 jobs and US$ 202.1 Million per annum in GDP. Study analysis reveal compelling
evidence that full liberalization of restricted routes leads to 9% lower
average fares and a 41% increase in frequencies, which in turn stimulate
passenger demand.
“The study economic
analysis demonstrates that increased air service and traffic resulted in
positive benefits for the total EAC economy” said Lilian Awinja, EABC CEO.
According to the study, liberalization
of Air Transport contributes to greater trade and tourism, inward investment,
productivity growth, increased employment and economic development; and is
supported by a range of regional stakeholders.
The study notes that liberalization offers a means to restructure national carriers and increase profitability by expanding into new markets, accessing a wider pool of investment and through consolidation.
“The EAC should harmonize
air transport regulations specifically taxes across the region and finalize the
EAC Liberalization of Air Transport Regulations also fully implement
Yamoussoukro Decision.” said Ms. Lilian Awinja EABC CEO.
- End –
- Notes
to Editors
EABC meeting to validate the findings of the Study
on “The Costs and Benefits of Open Skies in the East African Community” took place on Wednesday 10th May,
2017 at Hilton Hotel, in Nairobi, Kenya. The study on “The Costs and
Benefits of Open Skies in the East African Community” was undertaken by East
African Business Council (EABC) and the EAC Secretariat in collaboration with
DFID and the East African Research Fund (EARF). In attendance was Robert
Mwesigwa Executive Director CASSOA, Eric Ntagengerwa, EAC Senior Transport
Manager, Dr. Kato Kimbugwe, Team Leader Economic Growth Department for
International Development (DFID), Ministries responsible for Transport, Civil
Aviation Authorities, Airport Authorities, EABC Members, Air Transport Operators such as Kenya Airways, Rwanda Airways and Ethiopian
Airlines, Tourism Associations, Tourism Operators, Hotel Associations and Cargo
representatives from the EAC Partner States.
Yamoussoukro
Decision. The Decision, adopted in 1999, not only commits 44 signatory
countries in Africa to liberalization air transport, but also acts as a
platform to attract private sector investment. As per the open skies
international concept, broadly the Decision calls for ‘full liberalization,’ to
remove all restrictions on access, price, frequency and capacity in
intra-African Air Transport market; free exercise of the first five freedom
rights in the air transport and promote fair competition.
EAC Partner States have
committed to fully implement the Yamoussoukro Decision as part of the Common
Market Protocol and in line with the ongoing efforts by the African Union
Commission (AUC) and Civil Aviation Commission (AFCAC) to establish a single
African Air Transport market. However, the domestic Air Transport within the
EAC region remains un-harmonized until the work on EAC air transport
regulations on Liberalization of Air Transport are adopted.
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