AVIATION IN TRANSITION:CHALLENGES AND OPPORTUNITIES OF LIBERALISATION

1. AVIATION IN TRANSITION:CHALLENGES AND OPPORTUNITIES OF LIBERALISATION COMESA’S EXPERIENCE

2. MAP OF COMESA

3. HISTORY OF COMESA 1958&1960 – 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.

4. HISTORY OF COMESA ..cont’d 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.

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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

12. LEGAL NOTICE No.2 --CONT’D 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

13. LEGAL NOTICE No.2 ..cont’d PHASE 2 (OCT 2000 – OCT 2001) PROVIDES FOR FREE MOVEMENT OF INTRA-COMESA AIR TRANSPORT SERVICES

14. 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

15. 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

16. 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

17. 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

18. IN CONCLUSION Please wait a second for an animation of air links in Africa