The Economic Effects of Air Transport Market Liberalisation
A Perspective Analysis of the Single African Air Transport Market (SAATM)
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This book rigorously examines the air transport market liberalisation process on the African continent and presents key highlights, challenges, and impediments to embracing an open skies market environment in Africa. It focuses on the economic impact of air transport liberalisation, policy constraints, challenges of harmonisation, and regional economic integration and its impact on air transport development, employing a quantitative assessment based on the Air Transport Liberalisation Index (ALI) to evaluate how an open skies policy would change the competitive dynamics of air transport in Afr...
This book rigorously examines the air transport market liberalisation process on the African continent and presents key highlights, challenges, and impediments to embracing an open skies market environment in Africa. It focuses on the economic impact of air transport liberalisation, policy constraints, challenges of harmonisation, and regional economic integration and its impact on air transport development, employing a quantitative assessment based on the Air Transport Liberalisation Index (ALI) to evaluate how an open skies policy would change the competitive dynamics of air transport in Africa. Adopting a two-tier gravity model, the book explores how demand and route networks would be impacted by the deregulation of the air transport market. The book also applies a historical perspective by evaluating the initial ratification of the Yamoussoukro Declaration (1999), which acted as a catalyst for Africa s 2063 regional agenda, focused on establishing the Single African Air Transport Market (SAATM).
The book also provides a comprehensive analysis of the African Continental Free Trade Area (AfCFTA), exploring its multifaceted impacts on Africa s single market from economic, regulatory, and sustainability perspectives. This includes an introduction to the AfCFTA, highlighting its inception as a major step towards continental economic integration aimed at enhancing intra-African trade, promoting sustainable development, and fostering industrial diversification. It then examines the capacity and competency building of African aviation personnel. Training gaps and skills are extensively evaluated to ensure that the African region is prepared for the new competitive equilibrium post SAATM. The book also raises critical questions regarding the status of the African air transport market. Firstly, with the introduction of an open skies policy in Africa, will the national flag carriers be able to compete under the new market dynamics? Will the SAATMbecome a game changer in paving the way for the privatisation of some of Africa s poor-performing airlines? Will the SAATM create a competitive market and a shift in airfares? How will policymakers deal with the excessive aviation taxes, fees and charges that make airfares in Africa the highest in the world? What will the economic benefits be for signatory states that embrace the SAATM? Will there be a significant growth trajectory in terms of air travel demand?
This book is intended for researchers studying air transport economics in developing markets, graduate students with a primary focus on air transport development, senior policymakers and professionals at governmental agencies, and industry practitioners who want to expand their understanding of the dynamics shaping Africa s air transport landscape. The author wishes to acknowledge the support of Paul Bernsdorff in the preparation and delivery of Chapter 5: The Economic Benefits of Market Liberalisation under SAATM.Paul Bernsdorff holds a BA Aviation Management (IUBH) and MSc International Management (ISM Dortmund). His areas of research interest cover air transport economics and market liberalisation within the African continent under the Single African Air Transport Market (SAATM) agenda.
The book also provides a comprehensive analysis of the African Continental Free Trade Area (AfCFTA), exploring its multifaceted impacts on Africa s single market from economic, regulatory, and sustainability perspectives. This includes an introduction to the AfCFTA, highlighting its inception as a major step towards continental economic integration aimed at enhancing intra-African trade, promoting sustainable development, and fostering industrial diversification. It then examines the capacity and competency building of African aviation personnel. Training gaps and skills are extensively evaluated to ensure that the African region is prepared for the new competitive equilibrium post SAATM. The book also raises critical questions regarding the status of the African air transport market. Firstly, with the introduction of an open skies policy in Africa, will the national flag carriers be able to compete under the new market dynamics? Will the SAATMbecome a game changer in paving the way for the privatisation of some of Africa s poor-performing airlines? Will the SAATM create a competitive market and a shift in airfares? How will policymakers deal with the excessive aviation taxes, fees and charges that make airfares in Africa the highest in the world? What will the economic benefits be for signatory states that embrace the SAATM? Will there be a significant growth trajectory in terms of air travel demand?
This book is intended for researchers studying air transport economics in developing markets, graduate students with a primary focus on air transport development, senior policymakers and professionals at governmental agencies, and industry practitioners who want to expand their understanding of the dynamics shaping Africa s air transport landscape. The author wishes to acknowledge the support of Paul Bernsdorff in the preparation and delivery of Chapter 5: The Economic Benefits of Market Liberalisation under SAATM.Paul Bernsdorff holds a BA Aviation Management (IUBH) and MSc International Management (ISM Dortmund). His areas of research interest cover air transport economics and market liberalisation within the African continent under the Single African Air Transport Market (SAATM) agenda.
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