PRESENTATION ON THE AIRLIFT STRATEGY AND IMPLEMENTATION OF

YAMOUSSOUKRO DECISION FOR THE TOURISM SUMMIT

DATE: SEPTEMBER 2013

TABLE OF CONTENTS Section 1 IMPORTANCE OF CONNECTIVITY Section 2 AIRLIFT STRATEGY ENHANCING CONNECTIVITY

Section 3 WHAT IS YAMOUSSOUKRO DECISION AND WHY IS IT IMPORTANT

Section 4 STATUS QUO

Section 5 CHALLENGES/ISSUES

IMPORTANCE OF CONNECTIVITY

Connectivity is increasingly important to the global economy;

Connectivity is important for the ability connect people and to move goods quickly, reliably, and at a reasonable price;

Connectivity is key for tourism; Increased regional consultation and decision-

making for matters of air transport.

AIRLIFT STRATEGY ENHANCING CONNECTIVITY

Increasing contribution to accelerated economic growth;

Increase the mobility of the domestic market;

Improve Safety and Security;

Aviation Community well-being; and

Environmental responsibility

AIRLIFT STRATEGY ENHANCING CONNECTIVITY continue…….

Improve relationship and partnership between states, stakeholders, industry and government moving towards shaping the air transport system as well as expanding the low cost carrier concept within South Africa;

Increase useage of aviation facilities in the country

Increased granting of 5th Freedom traffic rights;

Establishment and strengthening of regional civil aviation

WHAT IS YD AND WHY IS IT IMPORTANT

Successor to the Yamoussoukro Declaration on a New Air Transport Policy in Africa adopted in 1999;

Adopted in 1999 and endorsed in 2000 as a Decision of the Assembly of the African Union within the context of the Treaty establishing the African Economic Community(Abuja Treaty);

WHAT IS YD AND WHY IT IS IMPORTANT

Focus on internal market liberalisation and fair competition as a key development strategy while also addressing safety, security and environmental issues;

Complete implementation initially was envisaged within two(2) years and was subsequently, revised to 2006; and

To-date implementation target is yet to be attained by most of the African States

STATUS QUO Since the inception of the Airlift Strategy which

incorporated the mandate to implement key elements of YD with willing States pending the multilateral implementation, the Department of Transport in 2010 reviewed bilateral air services arrangements with the following countries in an attempt to increase traffic frequencies :● France ● United Kingdom ● India● Japan ● New Zealand ● UAE ● Korea ● Australia ● Nigeria● Brazil ● Netherlands ● Kenya ● Cameroon ● Senegal

CAPACITY INCREASESThe Department of Transport continued to implement the Airlift Strategy and created capacity in air traffic increases as follows:S America: 2008 2009 2010 2011 2012

2013 Brazil 14 21 28Europe: France 14 UK 56 63 Netherlands 23 30 35Luxembourg 7Ukraine 7

CAPACITY INCREASESAFRICA: 2008 2009 2010 2011 2012 2013Senegal YD YD YDKenya YD YD YDCameroon YD YD YDNigeria 10Botswana 10Burkina Faso YDBurundi YD

CAPACITY INCREASES

AFRICA: 2008 2009 2010 2011 20122013Eritrea YDMozambique SeatsMali YDDRC 9Nigeria 13Tanzania 28 Seychelles YD

CAPACITY INCREASESASIA: 2008 2009 2010 2011 2012

2013Japan 7Korea 15 15Australia 10 14 21New Zealand 7 India 14 21 28Pakistan 7Singapore 17China 14Viet Nam 7

CAPACITY INCREASE

ASIA: 2008 2009 2010 2011 20122013

Sri Lanka 7Maldives 7

Middle East: UAE 42 54 63

NEW POINTS OF ENTRY

With all the bilateral air services arrangements reviewed, points of entry to/from South Africa were opened up except for States within Europe due to the pending finalization of South African position on matters related to Horizontal Agreement and single designation.

Only 55% of the bilateral have been taken hence the

principle of use it or loose it.

FEARS AND CHALLENGES

Poor connectivity;

Reduced competitiveness and quality of services on intra -African routes;

High cost of air travel;

Insignificant impact on socio-economic development of majority of African populations.

CHALLENGES continue… Differences in macro-economic policies and

strategies;

Different levels of development and deep concerns of individual country/state interests;

Fear of the unknown: lack of knowledge on the actual/expected benefits and/or negative effects of liberalisation;

CHALLENGES continue…….

Market position / competitive advantage;

The Executing Agency;

Competition regulations;

Dispute settlement mechanism;

Appropriate policy on relations with third parties.

POSSIBLE BARRIERS

Negative Experience

Difficulty of seamless travel

Safety and Security

YD

Unfavourable bilaterals

THANK YOU