AVIATION IN TRANSITION:CHALLENGES AND OPPORTUNITIES OF LIBERALISATION

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AVIATION IN TRANSITIONCHALLENGES AND
OPPORTUNITIES OF LIBERALISATION

• COMESAS EXPERIENCE

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MAP OF COMESA
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HISTORY OF COMESA

• 19581960 Meetings of Independent African
  States agreed to promote economic co-operation
  amongst themselves to combat fragmented economies
  and small market size.
• 1965 UNECA ministerial meeting in Lusaka,
  Zambia recommended creation of Economic Community
  of Eastern and Southern African States.
• 1981 Treaty establishing Preferential Trade
  Area (PTA) was signed. Treaty envisioned
  transformation of PTA into a Common Market in ten
  years.
• 1982 PTA Treaty was ratified.

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HISTORY OF COMESA ..contd

• 1993 Treaty establishing COMESA signed.
• 1994 COMESA Treaty ratified.
• Economic integration in Eastern and Southern
  Africa is a logical systematic step by step
  process from Preferential Trade Area to a Common
  Market and then an Economic Community.

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COMESA VISION

• To attain a fully integrated internationally
  competitive regional economic community with high
  standards of living of its people and where
  goods, services, capital and labour move freely
  across borders

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AIMS AND OBJECTIVES OF COMESA

• To attain sustainable growth and development of
  the member sates
• To promote joint development in all fields of
  economic activity
• To co-operate in the creation of an enabling
  environment for foreign, cross-border and
  domestic investment
• To co-operate in the promotion of peace, security
  and stability among member states
• To co-operate in strengthening the relations
  between COMESA and the rest of the world.
• To contribute towards the establishment, progress
  and realization of the objectives of the African
  Economic Community.

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DECISSION MAKING PROCESS OF COMESA

• Authority
• Council of Ministers
• COMESA Court Of Justice
• Committee of Governors of Central Banks
• Inter-Governmental Committee
• Technical Committees(12)
• Consultative Committee of Business
• Secretariat

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COMESA IN CONTINENTAL CONTEXT

• PTA/COMESA established under the auspices of
  Lagos Plan of Action and Final Act of Lagos which
  seek to establish African Economic Community
• COMESA like other RECs is building of African
  Economic Community
• COMESA Air Transport Liberalization Programme in
  line with Abuja Treaty(1994) Articles 61 and 88

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YAMOUSSOUKRO DECISION

• Yamoussoukro Decision based on Abuja Treaty and
  came into force 12 August 2000
• Yamoussoukro Decision provides for
• Removal of restrictions on traffic rights
  including 5th Freedom
• Fixation of tariffs without government approval
• Multiple designation
• Criteria for market access for eligible airlines
• Standards for safety and security

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AIR TRANSPORT LIBERAZATION PROGRAMME OF COMESA

• Based on the COMESA Treaty Article 87(3) a, c, d,
  e, g and I which provide for
• Adoption of common policies
• Liberalization of air transport services
• Harmonization of civil aviation regulations
• Harmonization of airport facilitation procedures
• Implementation of CNS/ATM systems
• Harmonization and co-ordination safety oversight
  and security programmes

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REGULATIONS FOR THE IMPLEMENTATION OF
LIBERALISATION OF AIR TRANSPORT SERVICES LEGAL
NOTICE No. 2 OF 1999

• Promulgated by Council in May 1999 and came into
  force October 1999
• Adopted a two phase implementation schedule and
  timetable
• Phase 1 October 1999 October 2000
• Phase 2 October 2000 October 2001

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LEGAL NOTICE No.2 --CONTD

• PHASE 1 (OCT 1999- OCT 2000)
• Free movement of cargo and non-schd pax
• Free movement of schd pax up to 2 daily
  frequencies per city pair
• Multiple designation
• Elimination of capacity/equipment restrictions
• Fifth freedom traffic limited to 30 on sectors
  with 3rd 4th freedom services and unlimited on
  sectors without 3rd 4th freedom services

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LEGAL NOTICE No.2 ..contd

• PHASE 2 (OCT 2000 OCT 2001)
• PROVIDES FOR FREE MOVEMENT OF INTRA-COMESA AIR
  TRANSPORT SERVICES

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STATUS OF IMPLEMENTATION OF LEGAL NOTICE No.2

• COMESA AIR TRANSPORT REGULATORY BOARD (ATRB) WAS
  ESTABLISHED - 1999
• TWELVE MEMBER STATES HAVE IMPLEMENTED BURUNDI,
  DJIBOUTI, EGYPT, ERITRIA, ETHIOPIA, KENYA,
  MADAGASCAR, RWANDA, UGANDA, SUDAN, ZAMBIA
  ZIMBABWE
• OTHER STATES EXPRESSED DIFFICULITIES IN
  IMPLEMENTING AND WERE ALLOWED TO SEEK DEROGATION

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WAY FORWARD

• ACTIVITIES IN THE AREAS OF HARMONISATION,
  MONITORING AND PROTECTION OF CONSUMERS INCLUDE
• INSTITUTIONAL AND MONITORING MECHANISM
• COMESA AIR TRANSPORT POLICY
• IMPLEMENTING PROVISIONS
• MEMORANDUM FOR COURT OF JUSTICE AND TRIBUNAL
• CAPACITY BUILDING IN STAKE HOLDERS
• CONSUMER PROTECTION REGULATIONS
• REGULATORY HARMONISATION
• INCORPORATION OF COUNCIL REGULATIONS INTO
  NATIONAL LEGAL AND ADMINISTRATIVE PROCEDURE
• EXPAND PROGRAMME TO COVER AVIATION SAFETY AND
  SECURITY

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IMPACT OF PHASE 1

• INCREASE OF FLIGHT FREQUENCES BETWEEN CITY PAIRS
• REDUCTION IN FARES DUE TO COMPETION
• INCREASE IN AIRLINE CO-OPERATION
• INCREASE IN REVENUE TO AIRPORTS AND ATS PROVIDERS
• INCREASE IN CONSUMER CHOICE DUE TO NEW AIRLINES
  ENTERING THE MARKET

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CO-OPERATION WITH OTHER RECS

• COMESA IS ALREADY WORKING JOINTY WITH EAC SADC
  ON COMPETION REGULATIONS
• COMESA IS ALREADY EXPLORING WAYS TO CO-OPERATE
  WITH OTHER RECS CEMAC, CENSAD, ECOWAS,IGAD, IOC,
  MRU, UMA, UEMOA, etc

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IN CONCLUSION

• Please wait a second for an animation of air
  links in Africa