Abstract
Restricting air service operations through bilateral air service agreements traditionally is a common feature within the context of aviation in Africa. Preceding any moves towards liberalization on the continent, Africa’s aviation environment was characterized by government protectionism over weak, state-owned airlines through tight regulatory policies aimed at protecting national flag carriers from foreign competition. However, under the Yamoussoukro Decision (YD) in 1999, 44 signatory members of the African Union (AU) formalized the road map transition to open up African airspace through the adoption of an “open skies” policy. This chapter explores the development of air transport liberalization from a historical perspective through a rigorous lens analysis, in particular, highlighting the fundamental weaknesses of the YD. However, the African governments have bolstered their attempt to liberalize air transport market within the region through the signing of the Single African Air Transport Market (SAATM) on January 28, 2018. SAATM is expected to bring about enhanced connectivity across the continent leading to sustainable development of the aviation and tourism industry with significant contribution to economic growth, inclusive job creation, poverty reduction, prosperity, and integration across Africa. The initiative—the Single African Air Transport Market (SAATM) is one of 12 flagship initiatives on the AU’s agenda 2063. The chapter examines the potential effects of air transport liberalization using regression methods on selected markets such as South Africa, Kenya, Ethiopia and Nigeria. The results of the analysis present a meaningful insight into the benefits of opening up markets which lead to increased passenger traffic among participating nations.
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