The Economic Effects of Air Transport Market Liberalisation: A Perspective Analysis of the Single African...

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Eyden Samunderu

The Economic Effects of Air Transport Market Liberalisation

A Perspective Analysis of the Single African Air Transport Market (SAATM)

Eyden Samunderu

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English

Springer International Publishing AG
20 September 2024

Microeconomics; International business; Management of specific areas; Transport industries

Series: Advances in African Economic, Social and Political 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. The author wishes to acknowledge the support of Paul Bernsdorff in the preparation and delivery of Chapter 5: The Economic Benefits of Market Liberalisation under SAATM. Paul Bernsdorff holds a BA Aviation Management (IUBH) and MSc International Management (ISM Dortmund). His areas of research interest cover air transport economics and market liberalisation within the African continent under the Single African Air Transport Market (SAATM) agenda.

By: Eyden Samunderu
Imprint: Springer International Publishing AG
Country of Publication: Switzerland
Edition: 2024 ed.
Dimensions: Height: 235mm, Width: 155mm,
ISBN: 9783031618635
ISBN 10: 3031618637
Series: Advances in African Economic, Social and Political Development
Pages: 730
Publication Date: 20 September 2024
Audience: Professional and scholarly , Undergraduate
Format: Hardback
Publisher's Status: Active

The Scope of the Global Aviation Industry.- Contextual Setting of the African Air Transport Market.- The Deregulation of Air Transport – An International Perspective.- African air transport liberalisation – The Yamoussoukro Decision.- Economic Benefits and Passenger Developments under the Single African Air Transport Market (SAATM).- Challenges and complexities affecting African air transport market development – A skills, competency and capacity building perspective.- Liberalisation of trade regime under AFCFTA – A perspective analysis on Africa´s single market.

Professor Dr. Eyden Samunderu (PhD) is Managing Partner at AMENA Africa, a Programme Director at the International School of Management (ISM) in Dortmund, Germany, and an Africa air transport expert for COMESA, EASA, and AFCAC. He is a leading seasoned international senior air transport consulting expert with a strong focus on the African market and well trusted advisor with a reputable history in aviation management and international project management. He has conducted numerous projects for the Common Market of Eastern and Southern Africa (COMESA) as well as EU-funded projects by the European Union Aviation Safety Agency (EASA) as part of the SAATM initiative and provision of consulting services to support the African Civil Aviation Commission (AFCAC) in implementing the open skies arrangement. He is also the author of Air Transport Management – Strategic Management in the Airline Industry and African Air Transport Management- Strategic Analysis of African Aviation Market and has published several articles on air transport. His research interests include Air transport economics, competition and regulatory policy, spatial econometrics, and financial risk management.