In effort aimed at lowering the cost of air tickets for both passengers and cargo in the region, the East African Business Council (EABC) has urged member states to have a Single Air Transport Services Agreement.
John Bosco Kalisa, CEO of the EABC, said East African Community (EAC) states should give preferential treatment to East African airlines to allow them to offer wider and cheaper cargo services.
According to CIPS, the move comes as the African Union (AU) aims to pilot a similar open air arrangement. The EABC carried out a study on air transport services that found the air transport sector in EAC countries was suffering from limited infrastructure, lack of standardised regulation and high air transport costs. The study found cargo volumes had largely stagnated in the EAC due to high costs, excessive paperwork, and scheduling delays with selected airlines.
Inadequate infrastructure for food storage and route restrictions also hindered access to new markets. “The EAC should consider replacing the existing Bilateral Air Services Agreements with a single air transport services agreement for EAC to lower the cost of air transport in the region,” said Kalisa. He called for member states to fast-track EAC Regulations on the Liberalization of Air Transport Services. The report found that liberalising air transport in the EAC countries could result in an additional 46,320 jobs and an increase of GDP by $2bn annually.
A separate study by the AU last year found AU economies would gain $4.2bn in GDP, as well as 596,000 new jobs and a 27% reduction in air fares, if a single African air transport market agreement was fully implemented. In November 2022 the African Civil Aviation Commission announced the pilot implementation of the Single African Air Transport Market (SAATM), with 15 of the 35 signatory states aiming to pilot the scheme.
The International Air Transport Association, which has long championed the scheme, said: “Open air arrangements boost traffic, drive economies and create jobs. “SAATM will ensure aviation plays a major role in connecting Africa, promoting its social, economic and political integration and boosting intra-Africa trade and tourism as a result.”
Countries participating in the pilot are Kenya, Ethiopia, Rwanda, South Africa, Cape Verde, Côte d’Ivoire, Cameroon, Ghana, Morocco, Mozambique, Namibia, Nigeria, Senegal, Togo and Zambia.
