Why IATA's Willie Walsh Still Fights for Open African Skies

The International Air Transport Association (IATA) is renewing its push. The goal is to fully implement the African open skies policy. IATA Director General Willie Walsh says convincing governments remains a struggle. He stresses that many African states still resist full liberalization. This resistance limits African airline profitability and continental economic growth. IATA champions the Single African Air Transport Market (SAATM). SAATM is a flagship project of the African Union Agenda 2063. It aims to create a single, unified air transport market. Full implementation would replace restrictive bilateral agreements. This would allow airlines to fly freely across the continent.

The Challenge of Fragmentation

African carriers face significant financial hurdles. IATA forecasts show African airlines will earn a net profit of only $0.2 billion in 2025. This profit translates to just $1.00 per passenger. This is far below the global average of $7.20 per passenger. The razor-thin margins highlight the industry's fragility. Walsh points to high operational costs as a major factor. These costs include onerous taxation and expensive infrastructure charges. Fragmented markets, however, are the biggest barrier. Restrictive bilateral agreements prevent airlines from achieving scale. This fragmentation keeps airfares high for passengers. It also limits route options and frequency.

Slow SAATM Implementation

The SAATM initiative was launched in 2018. Its purpose was to expedite the Yamoussoukro Decision. That decision aimed to liberalize intra-African air transport. As of mid-2024, 37 countries have signed the commitment. These nations represent a large portion of the aviation market. However, actual implementation has been slow. Walsh has called the slow pace a "failure in terms of agreements." He argues that governments prioritize protecting state-owned carriers. This protectionism stifles competition and innovation. It ultimately hurts the consumer and the wider economy.

Economic Benefits of Liberalization

IATA research clearly outlines the potential rewards. Liberalizing air transport would unlock vast aviation economic benefits. A 2014 IATA study focused on 12 key African countries. Liberalization among these countries alone could create 155,000 new jobs. It would also generate $1.3 billion in additional annual GDP. Full SAATM implementation promises even greater gains. It could reduce journey and waiting times by over 20%. Increased competition would also lead to lower fares. This would stimulate more intra-African air travel and tourism. The continent's share of global air traffic is less than 4%. Walsh believes full open skies could boost this share to 10% or more.

The Way Forward for African Aviation

IATA continues to advocate for policy change. The association urges African governments to view aviation as a strategic asset. They must remove financial and regulatory barriers. A smarter regulation approach, aligned with global best practices, is needed. Manufacturers like Airbus also benefit from a healthier market. Greater profitability allows carriers to invest in modern, efficient fleets. This improves both safety and sustainability. The African Civil Aviation Commission (AFCAC) and the African Union (AU) must lead. They must ensure the commitments made are fully realized. This is essential for the continent's integration and future prosperity. For more commercial aviation news, visit flying.flights. The global regulatory environment, monitored by bodies like the FAA, shows open markets drive growth. Africa needs this same competitive environment to thrive.