George Muhoho

AFRICA’S AIRPORT INFRASTRUCTURE TOWARDS SAFETY AND COMMERCIAL VIABILITYBYMR. GEORGE K. MUHOHOMANAGING DIRECTORKENYA AIRPORTS AUTHORITY.US Africa Air Transportation Summit MIAMI, FLORIDA- OCT. 31-NOV 2 2005: 

AFRICA’S AIRPORT INFRASTRUCTURE TOWARDS SAFETY AND COMMERCIAL VIABILITY BY MR. GEORGE K. MUHOHO MANAGING DIRECTOR KENYA AIRPORTS AUTHORITY. US Africa Air Transportation Summit MIAMI, FLORIDA- OCT. 31-NOV 2 2005

CONTENT SUMMARY: 

CONTENT SUMMARY THE GLOBAL AVIATION SCENARIO. THE AFRICA AVIATION SCENARIO. OBSTACLES TO DEVELOPMENT OF AFRICA’S AVIATION INDUSTRY USA GOVERNMENT ASSISTANCE TO IMPROVE AFRICA AVIATION INDUSTRY. AFRICA’S INITIATIVE TOWARDS COMMERCIAL VIABILITY. AFRICA’S SUCCESS STORY. AFRICA’S OFFER. CONCLUSION: ENHANCING AFRICA-USA AIR SERVICES.

GLOBAL AVIATION SCENARIO:: 

GLOBAL AVIATION SCENARIO: Air transport forms a unique global network linking people, countries and cultures. Over 1.8 billion passengers worldwide used the world’s airlines for business and leisure travel in 2004. The International Air Transport Association indicates that by 2010 this number could exceed 2.3 billion. International scheduled passenger traffic in 2004 increased by 15.5% over the 2003 and cargo traffic rose to 13.4%.

AFRICA AVIATION SCENARIO:: 

AFRICA AVIATION SCENARIO: Africa is the smallest region for air services in the world and traffic results for 2004 were thus encouraging and showed a significant growth in the region’s aviation sector. ACI REPORT 101 Million Passengers 88.5 million passengers 2004 2003 IATA STATISTICS IATA statistics show that Africa and Middle East regions had the highest monthly actual passenger traffic growth for August 2005 over August 2004 at 8.5% and 8.7% respectively

AFRICA AVIATION SCENARIO:: 

AFRICA AVIATION SCENARIO: Cairo Algiers Nairobi Cape Town Jo’burg Casablanca Lagos The 7 busiest Airports in Africa accounted for 70% of total passengers travelling by Air and 90% of Cargo Flights Aviation is the main transport mode in international flows in the continent. The use of air transport expanded by 7.2% a year on average during the 1990’s, compared to a rise of 4.4% per annum in the use of road transport.

IATA TRAFFIC FORECAST:The International Air Transport Association passenger traffic forecast (2003-2007) shows that air traffic in Asia –Pacific region and Africa are expected to be the most dynamic markets for international air passengers, growing at an average annual rate of 7% and 6.7% respectively: 

IATA TRAFFIC FORECAST: The International Air Transport Association passenger traffic forecast (2003-2007) shows that air traffic in Asia –Pacific region and Africa are expected to be the most dynamic markets for international air passengers, growing at an average annual rate of 7% and 6.7% respectively 0 2 4 6 8 Total Africa Americas Europe Middle East Asia+Pac. 0 2 4 6 8 International scheduled passengers (annual average growth forecast) Source: IATA for 2003-07 % % 2003-2007 2008-2015

OBSTACLES TO DEVELOPMENT OF AFRICA’S AVIATION INDUSTRY.: 

OBSTACLES TO DEVELOPMENT OF AFRICA’S AVIATION INDUSTRY. Very low intra- regional trade and travel Low domestic travel within states Low investment in infrastructure Management of Airports which are not financially viable Low marketing strategies for African Airports. Some Airlines especially in the Sub-Saharan continent have collapsed. Economic downturn due to the September 11 effects Air Safety and Security concerns. USA-Africa air travel inhibited by lack of FAA Category 1 Status for most of African States.

Slide8: 

Only Airports in Egypt, Cape Verde, Ethiopia, Morocco, Ghana and South Africa have attained FAA Category I status. There are only 23 direct flights between USA and Africa. NOTE: More countries need to strive to attain CAT 1 Status since high potential exists for development of air transport between the US and Africa. Kenya has received security equipment worth USD 1.01 M USA GOVERNMENT ASSISTANCE TO IMPROVE AFRICA AVIATION INDUSTRY. 1.INTERNATIONAL AVIATION SAFETY ASSESSMENT (IASA) PROGRAM

2. SAFE SKIES FOR AFRICA INITIATIVE: EST. IN 1998. OBJECTIVES: 

2. SAFE SKIES FOR AFRICA INITIATIVE: EST. IN 1998. OBJECTIVES Promote sustainable improvements in aviation safety and security in Africa and specifically at key African Airports. Increase number of African countries to meet ICAO safety standards. Foster the growth of air transportation between Africa and the USA. Improve regional air navigation services throughout the region.

Slide10: 

The initiative further compliments the US efforts to conclude open skies agreements with key African countries and promote code-share agreements between the U.S and African Airlines. TO DATE USA AVIATION EXPERTS HAVE VISITED

3. US-AFRICA OPEN SKIES AGREEMENTS WITH 10 AFRICAN COUNTRIES:: 

3. US-AFRICA OPEN SKIES AGREEMENTS WITH 10 AFRICAN COUNTRIES: TANZANIA, NAMIBIA, BURKINA FASO,GHANA, THE GAMBIA,NIGERIA,MOROCCO, RWANDA,BENIN AND SENEGAL. Air service links exist between the United States and Africa based on these agreements. Numerous African cities throughout the continent now have code-share service provided by U.S carriers with their European partners. For Example: Delta Airlines offers service to Morocco, South Africa and Cairo. Ghana Airways offers service to Baltimore and Ethiopian Airlines serves Dulles Airport. Kenya Airways through its strategic partnership with KLM offers connection services to the US. However the Kenya Government is working hard to ultimately have the national carrier have direct flights to the US market.

AIR SERVICES IN AFRICA: INITIATIVES TOWARDS COMMERCIAL VIABILITY.: 

AIR SERVICES IN AFRICA: INITIATIVES TOWARDS COMMERCIAL VIABILITY. Significant improvements in aviation safety and security in the continent as a whole. Liberalization of air transport, as decided by the African states to the Yamoussoukro Decision of 1999, to have a positive impact on growth of traffic. Privatization of Airlines (E.g Kenya Airways) and Airports ( E.g: Airport Company of South Africa, Cairo Airport and Kilimanjaro Airport) resulting in positive growth of traffic and airport business.

TOWARDS COMMERCIAL VIABILITY: CONTD...: 

TOWARDS COMMERCIAL VIABILITY: CONTD... Safety oversight functions and rectification of deficiencies on safety now being carried out through regional and sub regional cooperation. Eg. East African Community. Partnership between airlines and airports to improve customer service standards and joint marketing efforts. ICAO’s safety and security audits to stimulate compliance of international standards across African states.

TOWARDS COMMERCIAL VIABILITY: CONTD...: 

TOWARDS COMMERCIAL VIABILITY: CONTD... Autonomy of most Civil aviation and airports’ Authorities in the region. An example is the granting of full autonomy to Kenya Civil Aviation Authority by the Government of Kenya. Efforts are now concentrated on the separation of service regulation from service provision. The independence of civil aviation authorities from the regulatory function to make the regulator be in a better position to guarantee safety and economic oversight.

TOWARDS COMMERCIAL VIABILITY: CONTD...: 

TOWARDS COMMERCIAL VIABILITY: CONTD... The use of satellite and data based technologies will offer the most cost effective way to upgrade and modernize the provision of communications, Navigation and Surveillance infrastructure and the management of the African airspace. Developed countries and development- financial institutions (World Bank, regional development banks) normally available to support the upgrading of airports and air navigation services. The New Partnership for Africa’s Development (NEPAD) initiative in aviation is to find synergies in the area of licensing, Air traffic control, safety and security through the gradual creation of common institutions in order to improve services and develop common standards

TOWARDS COMMERCIAL VIABILITY: CONTD...: 

TOWARDS COMMERCIAL VIABILITY: CONTD... Technical and financial support being provided for strengthening existing national and regional aviation training facilities .i.e Centers of excellence in aviation safety and security. East African Heads of Airports and Civil Aviation Forum is looking into areas of cooperation across the board. At operational level the forum is looking into joint use of equipment e g. Rubber removal joint and removal of disabled aircrafts. There is also work towards the integration of airports in East Africa Community transport infrastructure programmes. At the regional level COMESA is also encouraging more city pairs air connectivity (e.g Lilongwe & Nairobi.)

AFRICA’S SUCCESS STORY: EXAMPLES: 

AFRICA’S SUCCESS STORY: EXAMPLES Investments in Africa's Airports:KAA is spending USD 100M, Khartoum Int’l Airport to be built @ USD 530 M, ACSA to invest USD 35 M at Maputo Airport, ACSA invested USD 500M in South African Airports in the last 5 Yrs and plan to spend USD860M between 2005-9 to upgrade facilities to include readiness for World Cup in 2010 , Addis Ababa’s New terminal cost USD 100M Airline Cooperation:Air Maroc’s 51% share in Air Senegal.Other Profitable Airlines in Africa: Ethiopian Airlines, Kenya Airways, South African Airways. Air Mauritius successful partnership between public and private sector> Government 51 % other shares private. Kenya Airways buying into Precision Air of Tanzania.

AFRICA’S OFFER:: 

AFRICA’S OFFER: “Air transport is ……. fundamental to all intercontinental tourism which includes most of the traffic flows between the industrialized and developing countries.” Geoffrey Lipman, Advisor, World Tourism Organization Value Added Agricultural products e.g Horticulture Cultural exchanges Production of industrial raw materials Eco- tourism/ nature based tourism

CONCLUSION: ENHANCING AFRICA- USA AIR SERVICES: 

CONCLUSION: ENHANCING AFRICA- USA AIR SERVICES USA and Africa’s aviation industry need to identify their niche market and seek synergies and partnerships for growth. The expansion of aviation links between Africa and US has the potential to generate the largest net benefits for both regions. . The currently low-level incomes per capita mean that African countries would gain more from new investments from USA The two regions will gain due to growth promoted by exports and tourism. Efforts to be hastened for more African countries to achieve the FAA Category 1 status. USA private and public enterprises to be more involved in the development of aviation infrastructure in Africa.

Slide20: 

END THANK YOU