Johannesburg can be the centre of the world if its airspace is liberated as demonstrated at aviation hubs in the Middle East and in the Far East, according to Fathi Atti, head of government affairs at Etihad Airways.
Speaking at the Aviation Outlook Africa 2010 conference in Cape Town on August 17, he drew on global examples to illustrate how Africa could achieve liberalization of its airspace, which he said would bring more competitive fares and better products and services; more routes and thus a more diversified visitor base; increased traffic and a resulting boom to the tourism industry; job growth in aviation and an indirect job growth in the wider economy.
Atti said in the past European hubs such as Frankfurt, Paris and London were seen as the centre of the aviation world. With liberalisation in the Far East this centre shifted to Singapore, then to the Middle East (Dubai, Doha and Abu Dhabi. “There is no reason why it couldn’t shift to Johannesburg!” he said.
New technology meant aircraft nowadays could fly longer hours without a stopover, meaning any city could be world aviation hub. For example, within 16 hours one could fly from Abu Dhabi to South-and North America, Australia and Japan.
The success of liberalization in the Middle East also resulted in Etihad becoming the fastest growing commercial airline, flying to 60 destinations with a fleet of 50 aircraft within six years of its inception and estimated to provide 272 000 jobs for people in Abu Dhabi by 2018.
To achieve liberalization as in the Middle East, Africa amongst others needed national carriers to be run not by governments and civil servants but by business experts; lift border restrictions such as visas; integrate its regions; embrace new aircraft and new technologies; and liberalise its domestic and external markets so everyone could fly.
Atti said Africa needed to take a broader look at how airlines should be run. “It’s about alliances, mergers, market access, and investments” he said. “The notion of national airlines run by national people needs to change. Airlines should be commercially operated and run by experts,” he said. “You transform hubs through alliances.”
At present in Africa, aviation regulators were still restricting the growth of airlines. Prohibitive government policies on ownership and air rights were limiting market access. Aviation was always the first industry to be burdened with a myriad of government taxes.