Qatar Airways CEO, Akbar Al Baker, lashed out at Africa’s closed-door aviation policies, which he says are limiting competition from foreign carriers and kneecapping economic growth and job creation.
Speaking at the end of the 69th IATA AGM in Cape Town, he said Africa had huge potential but was mostly underserved because its dominant airlines had huge influence over their governments and provided them with distorted information. He accused African airlines of being “worried that their inefficiencies will be exposed if they have more outside competition”.
He suggested the International Monitory Fund (IMF) and the World Bank review their assistance to African countries with protectionist policies. “When so much aid is going to develop tourism and jobs, the IMF and World Bank should also advise governments to sustain the airline industry. Aviation is a very important part of the economic development in Africa,” he said.
Open skies in Africa, as envisaged by the Yamoussoukro Declaration, had failed as many African countries continued to restrict outside air access in order to protect their state-owned flag carriers.
Yet non-African carriers operate 82% of traffic to and from the continent, the AGM heard during a panel discussion on “unlocking Africa’s potential”. While competition from Gulf carriers was welcome, they sometimes received more favourable treatment from African governments than their African counterparts, resulting in an uneven playing field, said African Airlines Association secretary-general and CEO, Elijah Chingosho. “They seem to be better at persuading governments to give them frequencies.” He said 90% of African carriers were small and needed economies of scale to compete. “I see an opportunity for large African carriers to partners with smaller airlines in order to be more competitive,” he said.
However, Etihad president and CEO, James Hogan, denied Gulf carriers were “cherry-picking” African routes. Etihad was partnering with African airlines, e.g. Air Seychelles, to access routes. “Africa is as tough as anywhere to access the market, but people [in Africa] want inbound tourism and trade connectivity. We’re not favoured, we have to go through the same processes and are keen to partner,” he said.
Protectionism or favouritism?
Protectionism or favouritism?
18 Jun 2013 - by Hilka Birns
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