Africa is the smallest of the ‘regional’ aviation markets but one that Boeing and others expect to expand over the medium term. Developments on the continent that require the creation of robust and efficient air transport include growth in tourism, the export of ‘exotics’, and the emergence of modern manufacturing and high-tech industries. Africa’s regional aviation markets generally lack good airports and air traffic control, viable airlines, and adequately skilled labour. Airline safety is also a major concern. Written by a ‘Who’s Who’ of aviation specialists and policy makers, The Economics and Political Economy of African Air Transport fills an emerging void in the literature regarding Africa’s aviation markets. Its original papers focus explicitly on the economic and political dimensions of the subject, although with relevance to the strategic planning and management of airlines and their associated infrastructure. Topics discussed include external and internal market efficiencies, air service liberalization, the emergence of new carriers, safety and security, low cost airline and other business models, and airport economics. Focusing on the broader issues surrounding the subject, this book will be of interest to both the aviation community and those with an interest in economic and social development.

This book rigorously examines the air transport market liberalisation process on the African continent and presents key highlights, challenges, and impediments to embracing an “open skies” market environment in Africa. It focuses on the economic impact of air transport liberalisation, policy constraints, challenges of harmonisation, and regional economic integration and its impact on air transport development, employing a quantitative assessment based on the Air Transport Liberalisation Index (ALI) to evaluate how an open skies policy would change the competitive dynamics of air transport in Africa. Adopting a two-tier gravity model, the book explores how demand and route networks would be impacted by the deregulation of the air transport market. The book also applies a historical perspective by evaluating the initial ratification of the Yamoussoukro Declaration (1999), which acted as a catalyst for Africa’s 2063 regional agenda, focused on establishing the Single African Air Transport Market (SAATM). The book also provides a comprehensive analysis of the African Continental Free Trade Area (AfCFTA), exploring its multifaceted impacts on Africa’s single market from economic, regulatory, and sustainability perspectives. This includes an introduction to the AfCFTA, highlighting its inception as a major step towards continental economic integration aimed at enhancing intra-African trade, promoting sustainable development, and fostering industrial diversification. It then examines the capacity and competency building of African aviation personnel. Training gaps and skills are extensively evaluated to ensure that the African region is prepared for the “new” competitive equilibrium post SAATM. The book also raises critical questions regarding the status of the African air transport market. Firstly, with the introduction of an open skies policy in Africa, will the national flag carriers be able to compete under the new market dynamics? Will the SAATM become a game changer in paving the way for the privatisation of some of Africa’s poor-performing airlines? Will the SAATM create a competitive market and a shift in airfares? How will policymakers deal with the excessive aviation taxes, fees and charges that make airfares in Africa the highest in the world? What will the economic benefits be for signatory states that embrace the SAATM? Will there be a significant growth trajectory in terms of air travel demand? This book is intended for researchers studying air transport economics in developing markets, graduate students with a primary focus on air transport development, senior policymakers and professionals at governmental agencies, and industry practitioners who want to expand their understanding of the dynamics shaping Africa’s air transport landscape.

This book provides a comprehensive overview of the African air transport market from a strategic management perspective. Drawing on well-grounded theories, research applications and real-world case studies, it examines competition dynamics, interconnectivity, the growth of low-cost carriers, and demand patterns in air transport for both passenger and cargo traffic. It also presents an expert analysis on the introduction of the Single African Air Transport Market (SAATM), made possible by the liberalization of the air transport market, from a regulatory perspective. Based on the results of the analysis, the book evaluates both the benefits and limitations of an open skies agreement. Furthermore, it shed lights on the challenges and complexities of African public infrastructure investments and airport financing, discusses the impact of COVID-19, and provides strategic recommendations for airlines. The book is aimed at professionals in aviation and airline industries and students interested in the African air transport market.

This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.

"The Conclusion contains the essential elements required in creating regional airlines in Africa." --

This book offers material for strategic thinking featuring contributions from key figures in Europe, the US and Asia. The focus of the book expands from economic to legal issues, bankruptcy and safety and security. The carefully selected papers offer a thorough and structured analysis of major current developments in the air transport industry. Fully up to date, topics covered include competitive strength, capacity utilisation and risk. The most likely future scenarios are more or less known. Only, the timeframe remains uncertain. The speed at which the various market players in the air transport chain will implement their strategies remains the key question. This depends on a whole range of exogenous and endogenous variables, as this book aspires to demonstrate. As both an overview of the current issues affecting the industry and as a cohesive set of strategic documents, therefore, this collection will prove invaluable for policy makers and researchers alike.