ICAO Meeting on Sustainable Development of Air Transport in Africa Antananarivo, 25 March 2015

Boubacar Djibo, Director Air Transport Bureau, ICAO

1 GLOBAL & AFRICAN PERSPECTIVE: AIR TRANSPORT

2 The Air Transport Industry

The air transport industry is not only • a vital engine of global socio-economic growth • but is also of vital importance as a catalyst for economic development, – creating direct and indirect employment, – supporting tourism and local businesses, and – stimulating foreign investment and international trade.

3 Continuous growth of air traffic

6,000 World World recession

5,000 SARS

Kilometres -

4,000

Asian crisis 9/11 terrorist attack 9/11 Gulf crisis Gulf

(billion) 3,000 Iraq war

Passenger 2,000 Iran - +5.9% Oil crisis growth rate vs. 2013

Revenue 1,000 trillion 6Revenue.1 Passenger-Kilometres in 2014* - 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Note: world total scheduled services *preliminary figures Source: ICAO 4 Economic Benefits of Aviation Worldwide in 2012 - Worldwide

58.1million $2.4 trillion Jobs* supported by Global economic aviation worldwide impact*

*including direct, indirect, induced and tourism catalytic

Source: Air Transport Action Group (ATAG), 2014 5 Economic Benefits of Travel and Tourism worldwide

In 2012, for the first time of history, there were over 1 billion international arrivals.

In 2014, Travel and Tourism… …contributed US$ 7,580 billion in GDP and 277 million jobs in global economy. ...is one of the largest industry in the world, representing 10% of global GDP.

During 2015, the industry’s contribution to global GDP is forecast to grow by 3.7% and employment by 2.6%. The Travel and Tourism industry generates one in eleven of all jobs in the world.

Travel and Tourism accounts for Over the next 10 years, travel and tourism will create 80 million new jobs, contribute to the 10% global GDP by 11.4 trillion US$. Total global GDP

Source: World Travel and Tourism Council (WTTC, 2015) and Global Travel Association Coalition (GTAC, 2014) 6 Economic Benefits of Aviation Focus on Africa in 2012 - Africa

7million $80 billion Jobs* supported by Global economic aviation in Africa impact*

*including direct, indirect, induced and tourism catalytic

Source: Air Transport Action Group (ATAG), 2014 7 World Air Transport in 2013 by Region Aircraft departures (million) Passengers carried (million)

Europe 7.9 -0.4% Europe 817 +3.1% Africa 0.9 -0.4% Africa 73 +3.5% Middle East 1.1+4.9% Middle East 161 +7.8% Asia and Pacific 8.6 +6.3% Asia and Pacific 1,008 +8.0% North America 11.0 -1.3% North America 815 +0.9% Latin America and Caribbean 2.6 +0.4% Latin America and Caribbean 230 +5.7%

Revenue Passenger-Kilometres (billion) Freight Tonne-Kilometres (billion)

Europe 1,556 +4.6% Europe 41.5 -0.1% Africa 134 +4.4% Africa 3.1 +4.0% Middle East 500 +11.2% Middle East 22.6 +12.0% Asia and Pacific 1,785 +7.7% Asia and Pacific 74.0 +0.2% North America 1,505 +2.0% North America 39.1 -4.9% Latin America and Caribbean 303 +6.7% Latin America and Caribbean 5.3 +2.7%

8 Scheduled commercial traffic Source: ICAO Annual Report of the Council 2013 8 Total (international and domestic) services Passenger traffic: Worldwide distribution Distribution in Revenue Passenger-Kilometres

2007 1st: North America 2013 1st: Asia/Pacific 2nd: Asia/Pacific 2nd: Europe rd 3rd: North America Latin America/ 3 : Europe Latin America/ Caribbean Africa Caribbean Africa Middle East 4% 2% 5% 2% 6% Middle East 9% Asia/ Pacific North America 31% 32%

Europe 27% North America 26%

Europe Asia/ Pacific 27% 29%

Scheduled commercial traffic Source: ICAO Annual Reports of the Council 9 Total (international and domestic) services Africa Top 15 Airlines - Top 15 Airports in 2013 AIRLINES RPK (billion) AIRPORTS Departures (thousand) - 10 20 YoY - 25 50 75 100 YoY 22.3 Johannesburg (JNB) 101.4 Ethiopian Airlines 20.4 Cairo (CAI) 71.1 Egypt Air 18.9 Lagos (LOS) 46.6 Royal Air Maroc 12.7 (NBO) 45.5 Airways 9.2 Cape Town (CPT) 43.7 Air Algerie 6.0 Dar Es Salaam (DAR) * 38.6 Air Mauritus 6.0 Casablanca (CMN) 37.8 5.1 Addis Ababa (ADD) 36.7 Tunisair 5.0 Algiers (ALG) 36.3 TAAG 3.5 Port Elizabeth (PLZ) 33.9 2.1 Tunis (TUN) 32.8 Arik Air 1.8 Maun (MUB) 27.0 Libyan Arab Airlines 1.6 Abuja (ABV) 26.6 Air Arabia Maroc 1.4 Zanzibar (ZNZ) 26.4 Afriqiyah Airways 1.4 Durban (DUR) 24.7

- 1 st airline and 1st airport are South African - Each airport of the Top 5 recorded a decrease in 2013 - Ethiopian Airlines: +20% RPK growth à 2nd largest airline in 2013 - Africa: +4.4% RPK growth in 2013

Note: total (int. and dom.) scheduled services Note: total (int. and dom.) scheduled and non-scheduled services Source: ICAO Form A and ICAO estimates 10 Source: ACI *ICAO estimate Market Access – Africa and the World

• The number of seats between Africa and the • The share of African carriers decreased from 47 rest of the world has doubled in 10 years to 40 per cent, between 2005 and 2014.

• 100 million seats were offered by airlines to • In the meantime, the share of Middle-Eastern travel to/from Africa in 2014 carriers increased from 13 to 19 per cent.

Source: OAG, ICAO 11 African airlines financial results

• African airlines profitability increases, but slowly. • African airlines financial results are characterized by higher yield and lower costs than the average of the industry. • Few airlines achieve break-even load factor.

0.15 2.0% 1.5% 0.1 2013 2014 2015 1.0% Net post-tax profit ($ billion) -0.1 0.0 0.2 0.05 0.5% Per passenger ($) -1.66 0.26 2.51

(USD billion)(USD 0 0.0% % revenue -0.8% 0.1% 1.1% 2011 2011 2012 2013 2014 -0.5% RPK growth (%) 4.4% 1.5% 5.9% -0.05 margin EBIT -1.0% ASK growth (%) 4.3% 2.1% 5.5% Net Profit -0.1 -1.5% Weight load factor (%) 56.1% 56.1% 55.3% Break-even load factor (% ATK) 56.3% 55.8% 54.5% -0.15 -2.0%

Source: ICAO and IATA (International Air Transport Association) 12 African airlines fleet renewal is on track

Average age of the fleet • The average age of the fleet decreased 20 from 2005 to 2015 16.5 14.8 15 Major African airlines started to operate 12.7 • 11.5 10 10 new generation aircraft adopting the 10 9 8.3 7.7 8 newest technologies such as the Boeing 777 and 787 5 • Fleet renewal enables airlines to reduce 0 2005 2015 fuel costs and maintenance and therefore operate new profitable routes. South African Airways Ethiopian Airlines Egyptair Royal Air Maroc

Source: ICAO 13 LCCs in Africa

• In 2013, 7% of the available seats within Africa were offered by LCCs. This LCC Traffic Intra Africa is much lower compared to the world average share of 29%.

• Overall in the intra-Africa market, the number of seats offered by LCCs increased from 1.4 million in 2004 to 5.9 million in 2013.

• The percentage of seats within Africa offered by LCCs grew from 3% in 2004 to 7% in 2013, +4 percentage points. This is much lower than the world average growth of +10 percentage points.

Number of States with LCC Traffic in Africa

• In 2013, 37% of the States in Africa had LCC traffic, 36 percentage points lower than the world average.

• 12 States in Africa had LCC traffic in 2004, the number increased to 20 States in 2013.

• The percentage of States in Africa having LCC traffic grew from 22% in 2004 to 37% in 2013, +15 percentage points. This growth is slightly lower than the world average growth.

Source: OAG 14 LCCs in Africa

A growing number ICAO definition of low-cost carriers States served by an African LCC in 2014 of African LCCs Doc 9626 Manual on the Regulation of International Air Transport Air Arabia Egypt ______a low-cost carrier generally refers to an air carrier that has a Air Arabia Maroc relatively low-cost structure in comparison with other comparable carriers and offers low fares or rates. Such a carrier may be independent, the division or subsidiary of a flyafrica.com major carrier or, in some instances, the ex-charter arm of an Jambojet airline group. ______kulula.com transporteur à faibles coûts ou transporteur low-cost Mango Airlines désigne généralement un transporteur aérien qui a des coûts relativement bas par rapport à d’autres transporteurs Fastjet comparables et qui offre des tarifs passagers ou FlySafair marchandises avantageux. Un tel transporteur peut être indépendant, être une division ou une filiale d’une Skywise compagnie majeure ou, dans certains cas, être l’ancienne … branche d’exploitation de vols d’affrètement d’un groupe de compagnies aériennes.

Source: ICAO GLOBAL & AFRICAN PERSPECTIVE: AIR CARGO

16 World International Cargo Shipment

Volume of world international Value of world international cargo shipment cargo shipment

Aviation Surface modes Aviation

One third of the value of world trade $6.4 trillion is shipped by air

Surface modes Source: Air Transport Action Group (ATAG), 2014 17 World Air Cargo in 2013

Freight Tonne-Kilometres (billion)

Europe 41.5 -0.1% +4.0% Africa 3.1 +4.0% vs. 2012 Middle East 22.6 +12.0% Asia and Pacific 74.0 +0.2% North America 39.1 -4.9% billion Latin America and Caribbean 5.3 +2.7% 186 Freight Tonne-Kilometres

ICAO is expecting +4.6 % freight traffic growth in 2014*

* Preliminary result Scheduled commercial traffic Source: ICAO Annual Report of the Council 2013 Total (international and domestic)18 services Freight Traffic: Worldwide Distribution Distribution in Freight Tonne-Kilometres

2007 1st: Asia/Pacific 2013 1st: Asia/Pacific 2nd: North America 2nd: Europe rd rd Latin America/ 3 : Europe Latin America/ 3 : North America Caribbean Africa Caribbean Africa 3% 1% 3% 2% Middle East Middle East 6% Asia/ Pacific 12% Asia/ Pacific 42% 40%

Europe 23% North America 21%

North America Europe 25% 22%

Scheduled commercial traffic Source: ICAO Annual Reports of the Council 19 Total (international and domestic) services Long-term Air Traffic Forecasts: “GATO” Scheduled Freight Traffic

Source: Cir 333, Global Air Transport Outlook to 2030 - GATO 20 Long-Term Air Traffic Forecasts: “GATO” Africa - Scheduled Freight Traffic Freight traffic (FTK) to/from and within Africa

Source: Cir 333, Global Air Transport Outlook to 2030 - GATO 21 Catalytic impacts of air cargo on the economic development

• Air cargo enables nations, regardless of location, to efficiently connect to distant markets and global supply chains in a speedy, reliable manner. • Air cargo is a tremendous enabler for economic development in the developing countries. It allows large pools of labor to connect with markets in the developed countries. • Air transport plays an especially pivotal role for the landlocked countries

Example in Kenya • 90,000 jobs depend on the cut flower industry, generating US$ 1 billion in foreign exchange each year. • Good road network between growing areas and Nairobi’s Jomo Kenyatta airport enables the flowers picked in the morning to reach Amsterdam markets by the evening.

22 ICAO Meeting on Air Cargo Development in Africa

Lomé, Togo 5-7 August 2014

• The meeting was attended by 364 participants

• 22 States Benin, Burkina Faso, Cameroon, Chad, Congo, Côte d’Ivoire, France, Gabon, Gambia, Ghana, Kenya, Mali, Mauritania, Morocco, Niger, Nigeria, Senegal, South Africa, Sudan, , Togo,

• 10 regional and international organizations ACI, AFCAC, AFRAA, ASECNA, ECOWAS, FIATA, IATA, TIACA, WAEMU, WCO

• And 52 private entities 23 ICAO Meeting on Air Cargo Development in Africa

ICAOMid-term Meeting review of on the Air implementation Cargo Development of the Lomé Action in Africa plan: 2015

Second ICAO Meeting on Air Cargo Development in Africa: 2016 – Addis-Ababa,

http://www.icao.int/Meetings/AirCargoDevelopmentForum-Togo

24

Ebola outbreak impact on air transport in Africa

Airlines have reduced their flight programmes to three States hit by the Ebola outbreak: Guinea, Liberia and Sierra Leone.

The number of seats offered from Guinea, Liberia and Sierra Leone started to decrease in September 2014 and is expected to be -64% lower in March 2015 year-on-year.

25 SPOTLIGHT:

MADAGASCAR

26 Economic Indicators: Madagascar

- Madagascar's sources of growth are tourism, agriculture and the extractive industries. Tourism focuses on the niche eco-tourism market, capitalizing on Madagascar's unique biodiversity, unspoiled natural habitats, national parks and lemur species.

- Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing 80% of the population.

27 Economic Indicators: Madagascar

• Identification of 3 levels of connectivity • Key driver of sustainable development for islands local • Connectivity of islands is essential for tourism • Tourism and transport policies must be coordinated

regional

global

Source: OAG 28 Economic Indicators: Madagascar

29 Aviation Indicators: Madagascar

Aircraft movements in Madagascar airports 30,000 7.7% 7.0% 10% 3.8% Top 10 cities by departure in 5% Africa in 2014

0% 20,000 -5%

-10%

Movements 10,000 -15%

-20%

0 -23.1% -25% 2010 2011 2012 2013 2014

domestic international growth

Source: ACM, ICAO 30 Aviation Indicators: Madagascar

Top 10 airlines in Africa in 2014 by capacity

Source: ICAO 31 Aviation Indicators: Madagascar

Passenger traffic in Madagascar airports

1600 8.1% 10% 7.4% 1400

1200 5% 1.1% (000) 1000

800 0%

600

Passengers 400 -5%

200 -7.2% 0 -10% 2010 2011 2012 2013 2014

domestic international growth

Source: CAM 32 CONNECTIVITY: AN IMPORTANT VALUE CHAIN TO STIMULATE AIR TRANSPORT DEVELOPMENT

33 Definition of Connectivity in Air Transport

Movement of passengers, mail and cargo involving the minimum of transit points

• which makes trip as short as possible

• with optimal user satisfaction

• at the minimum price possible

34 Connectivity Components

In order to optimize connectivity a strong Market supporting framework is needed access

Optimal use Airline of ANS This includes: activities (ASBUs) • market access (e.g. liberalization) • optimal use of: − air navigations services (incl. ASBUs) Connectivity − Aircraft Optimal use Inter- − airport systems of aircraft modality − facilitation and security • intermodality

• airline activities Optimal use of airport Facilitation* *Border control systems optimization and fastest security clearance

35 The Supporting Regulatory Framework: ICAO’s Contribution to Connectivity

Market access

The supporting Fair competition Taxes regulatory

framework: POLICIES

Supporting Consumer regulatory Charges ICAO’s protection framework contribution to

connectivity GUIDANCE

Facilitation/ Air carrier ownership Security & control

ASBUs

36 ICAO Activities Supporting Connectivity Part 1

• Market access liberalization: international agreements (including for cargo services)

• Air carrier ownership and control: international agreement to liberalize the current restrictions

• Aviation system block upgrades (ASBUs): improved access, better utilization of available capacity, reduced fuel burn

• Facilitation: need smooth transit through air transport system for passengers and cargo

37 ICAO Activities Supporting Connectivity Part 2

• Consumer protection: ICAO to foster regulatory convergence through core principles (incl. price transparency)

• Fair competition: ICAO to facilitate exchange of best practices ICAO (ICAN competition seminar) and facilitate comparison between national and regional competition policies/practices (compendium)

• User charges key principles – cost-relatedness, transparency, consultation with users, non-discrimination

• Taxation in line with ICAO policies – «Not to kill the goose that lays the golden eggs» 38 Market Access – Supporting Framework

Traffic liberalization (Pax and cargo) Regional framework Regional approaches Multilaterals (e.g. EU, YD)

FREEDOMS OF THE AIR Market Access

ICAN YD = Yamoussoukro Decision ICAO Air Services EU = European Union Bilaterals Negotiation Event

39 ICAN Benefits

Dubai, UA Istanbul, Turkey Kingston, Jamaica Mumbai, India Jeddah, Saudi Arabia Durban, South Africa Bali, Indonesia Venue Year 2008 2009 2010 2011 2012 2013 2014 Number of participating States 27 52 39 65 62 73 78

Number of bilateral meetings held 100 200 200 340 350 485 550

Number of agreements and 20 60 60 120 130 458 500 arrangements signed Ø Improve efficiency of negotiations Ø A place to meet for multiple ASA talks Ø A forum to get info, discuss issues ICAN/2015: Antalya, Turkey Ø A platform for bilateral, multilateral talks ICAN/2016: Latin America Ø Save time and money for States

40

ICAN –States’ Participation by Region

35 29 30 Number of African States

25 22 21 Number of 20 19 19 1819 Asia/Pacific States 16 Number of European 14 13 14 1314 15 1212 States 1010 10 10 10 11 10 8 8 8 Number of Middle 7 6 7 7 5 5 5 5 5 Eastern States 5 3 1 Number of American 0 States (incl. NA) Dubai, UAE Istanbul, Turkey Kingston, Jamaica Mumbai, India Jeddah, Saudi Durban, South Bali, Indonesia 2008 2009 2010 2011 Arabia Africa 2014 2012 2013

41 ICAN 2015 Antalya, Turkey (19-23 October 2015)

ICAN website http://www.icao.int/Meetings/ICAN2015

42 Registration of air services agreements by ICAO

Non-registered agreements and arrangements no agreement or arrangement recorded in the WASA database

None recorded

25 or more not recorded

11 – 24 not recorded

10 or less not recorded

All recorded

No data

Source: ICAO etools - WASA Map www.icao.int/etools Value of Connectivity Concept

Market access ð Connectivity ð Economic development

Connectivity brings concrete Connectivity is in line with value ð main purpose of air Chicago Convention Preamble transport

If conditions are met: • good end-user experience • more travel Art. 44 • more economic development • and hence more traffic growth

44 • World Bank Indicator on Air Transport Connectivity (ACI)

• WTO / WCO / TIACA / FIATA

Logistics Performance Index for Cargo Connectivity

• UNWTO / WTTC Joint Statement “Hand in Hand for Sustainability” Air Transport and Tourism Partnering for Economic Development

46 INFRASTRUCTURE MANAGEMENT

47 Charging Principles

4 key charging principles – Non-discrimination – Cost relatedness – Transparency – Consultation with users

ICAO’s Doc 9082 – ICAO’s Policies on Charges for Airports and Air Navigation Services

48 Charges vs. Taxes

• A charge is a levy that is designed and applied specifically to recover the costs of providing facilities and services for civil aviation

• A tax is a levy that is designed to raise national or local government revenues, which are generally not applied to civil aviation in their entirety or on a cost- specific basis. ICAO’s Doc 9562– Airport Economics Manual 49 Cost Basis for Airport Charges

• Users shall ultimately bear their full and fair share of the cost of providing the airport.

• Cost to be allocated is the full cost of providing the airport and its ancillary services, including appropriate amounts for cost of capital and depreciation of assets, as well as the costs of maintenance, operation, management and administration.

• Consistent with the form of economic oversight adopted, these costs may be offset by non-aeronautical revenues.

ICAO’s Doc 9562– Airport Economics Manual

50 Ownership and Management Options

• Government ownership • Management contract • Lease or concession • Transfer of minority ownership • Public-private partnerships • Private sector ownership and control

ICAO’s Doc 9562– Airport Economics Manual

51 Commercialization or Privatization

• When considering the commercialization or privatization of airports, States should bear in mind that they are ultimately responsible for safety, security and economic oversight of these entities.

ICAO’s Doc 9082 – ICAO’s Policies on Charges for Airports and Air Navigation Services

52 Impact of Taxation on Air Transport Sustainability

• States should ensure that the policies are followed by relevant authorities in charge of taxation so as to avoid imposing discriminatory taxes on international aviation which may have a negative effect on the competitiveness of the aviation industry and impact States’ national economies (Recommendation 2.6/1 of AT-Conf/6 refers)

• Part of the resolutions of the 45th Annual General Assembly of the African Airlines Association (AFRAA): “African governments should reduce taxes, charges and fees especially those related to fuel and passengers, and to avoid imposing airport development levies on passengers”

53 Impact of Taxation on Air Transport Sustainability

• Assembly Resolution A38-14 (Appendix D): “it is a matter of great concern that taxes are increasingly being imposed by some Member States in respect of certain aspects of international air transport…” • Member States urged to follow ICAO Policies on Taxation (Doc 8632): “Each Contracting State shall reduce to the fullest practicable extent and make plans to eliminate as soon as its economic conditions permit all forms of taxation on the sale or use of international air transport”

54 Economic Oversight

è To achieveEconomic a balance between oversight the interests of airports and those public policy objectives • Minimize the risk of anti-competitive practices or abusing any dominant position • Ensure non-discrimination and transparency in the application of charges • Investments in capacity meet current and future demand in a cost-effective manner • Protect the interests of passengers and other end-users

ICAO’s Doc 9082 – ICAO’s Policies on Charges for Airports and Air Navigation Services

55 Forms of Economic Oversight

From light-handed to more robust approaches: • Competition law • Fall-back regulation (or “market regulation”) • Institutional requirements (or “checks and balances”) • Price cap regulation (or “incentive-based” regulation) • Rate of return regulation (or “cost of service”, or “cost plus” regulation)

ICAO’s Doc 9082 – ICAO’s Policies on Charges for Airports and Air Navigation Services

ICAO’s policies on the issue are quite flexible for the application by States/Regulators according to local circumstances, in particular the degree of competition.

56 Non-Aeronautical Activities

It is recommended that, with the exception of concessions that are directly associated with the operation of air transport services, such as fuel, in-flight catering and ground handling, non-aeronautical revenues be fully developed, while keeping in mind the interests and needs of passengers and the public, and ensuring terminal efficiency

ICAO’s Doc 9082 – ICAO’s Policies on Charges for Airports and Air Navigation Services

57 Sustainable Funding of Regional Safety Oversight Organizations Safety: Regional Safety Oversight Organizations (RSOOs) Additional guidance was developed on funding of safety oversight function at the regional level and included in Chapter 5 of Safety Oversight Manual (Doc 9734) – Based on ICAO’s policies in Doc 9082, air safety charges would recover the RSOO’s cost of providing certain safety oversight services – Strict safeguards should be in place before the implementation of any air safety charge

Security The scope may be widened to include other areas of safety oversight, such as the certification and surveillance of aerodromes and air navigation facilities and even security oversight (Doc 9734)

Examples: – The East African Community Civil Aviation Safety and Security Oversight Agency (CASSOA) – The West African Economic and Monetary Union (UEMOA) agreed in October 2013 on the creation of a West African Community Civil Aviation Safety and Security Oversight Agency 58 Financing Aviation Safety Block Upgrades (ASBUs)

• AT-Conf/6* (Recommendation 2.7/1 b)) - Establish a multi- disciplinary working group to: – consider the challenges associated with the establishment of operational and economic incentives – allow early benefits of new technologies and procedures - ASBUs modules

• Multidisciplinary Working Group / ASBU/1 met in February 2014 – Creation of 4 ad-how sub-working groups – The report has been presented at MDWG/ASBU/2 in February 2015

59 FUNDING AND FINANCING CHALLENGES IN AFRICA

60 Africa Air Transport Challenges • Serious difficulties of development, including: – safety and security challenges, – difficulty of many airlines, airports and ANSPs to adequately access funds for the modernization and expansion of their infrastructure.

• While many infrastructure financing initiatives are currently taking place in various African States, progress remains generally below expectation.

61 Africa Air Transport Challenges

• For the development of civil aviation in the Region, African States should give priority to tackling obstacles such as: – the slow pace of implementation of the Yamoussoukro Decision (YD) leading to loss of market share for African airlines, – inadequate airport and air navigation infrastructure, and – unjustified charges and taxes.

62 Africa - Recommended Practices

African States, their airports and ANSPs should – consider using the existing ICAO mechanisms – explore other possible mechanisms that could assist them to finance their infrastructure projects.

They should also vigorously explore generation of revenues from non-aeronautical sources.

63 Effective Implementation of CEANS Recommendations in Africa

CEANS: Conference on the Economics of Airports and Air Navigation Services

The majority of reporting States in Africa adhere to ICAO’s policies on charges in Doc 9082

10% 30% 50% 70% However, Economic Oversight significant efforts should be Economic Performance pursued in order to implement Consultation with Users CEANS recommendations, especially with regard to economic Adherence to Policies performance and consultation with Four Principles in Laws Airports users. Four Principles in ASAs ANSPs

64 Airport Infrastructure in Africa Funding Issues

• There is difficulty of many airports in Africa to adequately access funds for the modernization and expansion of their infrastructure

• Revenues generated by the civil aviation sector should be re-invested in this sector in accordance with ICAO’s policies on charges (Doc 9082, ICAO’s Policies on Charges for Airports and Air Navigation Services)

• Regional cooperation and integration should be explored as the best way to secure cost-effective investments and achieve better returns

• Issues related to management and operations of airports that are not economically viable

65 Air Navigation Services Infrastructure in Africa - Funding Issues

• There is difficulty of many ANSPs in Africa to adequately access funds for the modernization and expansion of their infrastructure

• Revenues generated by the civil aviation sector should be re-invested in this sector in accordance with ICAO’s policies on charges (Doc 9082)

• Regional cooperation and integration should be explored as the best way to secure cost-effective investments and achieve better returns

66 African Union Financing the AU Functioning System

21st Assembly ordinary session of the African Union (AU) - May 2013 Objectives: accelerate Africa’s infrastructural development, to link African peoples, countries and economies; and help to drive social, cultural and economic development.

Outcome: The Assembly requested the AU Commission to submit the Report of the Ordinary Session to the Conference of Ministers of Finance and Economic Planning for their urgent consideration and concrete proposals of financing and implantation modalities of different options proposed.

ICAO’s concern: One of the option considered to finance the AU functioning system is to establish a tax on air tickets. - This tax is against ICAO policies on taxation (Doc 8632) - The financial needs for civil aviation development in Africa are not yet covered Therefore, ICAO is requesting to be associated to the coming discussions on this issue.

67 Cape Town Convention

Luxembourg

Europe: North America: 2 11 + EU Middle Asia Pacific: 18 East: 6 Latin America: 7

Africa: 19

Status of Ratification (as of Feb 2015) Member Countries (incl. aircraft protocol) European Union (incl aircraft protocol) Member Countries (no protocols) Member Country (incl both protocols) ratification also covered by European Union

68 Ratification

Main reasons for ratification by States

- Legal advantages • new uniform international regimen governing the taking of security in high-value mobile equipment, based on the creation of an international interest • improve predictability as to the enforceability of security, title reservation and leasing rights in aircraft objects

- Economic advantage • provide confidence to lenders and institutional investors • attract domestic and foreign capital • improve opportunities for asset-based financing of high-value aircraft equipment reduce risks for creditors and consequently borrowing costs for debtors • improved safety by assisting airlines in many jurisdictions in their efforts to modernize and upgrade their fleet • Reduce fuel and maintenance costs by having a more fuel efficient fleet

- Environment advantage • Improve the fuel efficiency of the fleet and reduce the emissions of greenhouse effect gases

69 Strategic Objective: Economic Development How ICAO is assisting Africa

• Provision of data and analytical support • Forecasting support through Traffic Forecasting Group (Africa and Indian Ocean traffic forecasting group met in Nairobi in August 2013) and Global Forecasts • Global and Regional 20-Year Forecasts: Pilots, Maintenance Personnel, Air Traffic Controllers (Doc 9956) • Expert guidance provided on request ([email protected]) • Ongoing work on the recommendation of the last Air Transport Regulation Panel (ATRP) • eTools and Cost-Benefit Analysis will be updated to facilitate the work of PIRGs (Planning and Implementation Regional Groups) • Ongoing work with ASECNA to determine efficiency of ATM system based on radar track data given by ASECNA With the support of 3 ICAO Regional Offices located in Africa: Cairo, Dakar and Nairobi

70 ICAO DATA MANAGEMENT

71 Enterprise Data Management (EDM) Member States ICAO Statistics Programme (Air Transport Reporting Forms) Plus data on Environment, Safety, Air Navigation etc. Collection, External data Verification sources

Business Analysis Tools ICORAS, ICAO Data Plus etc.

72 Enterprise Data Management (EDM)

Benefits for Council and States

• Availability of a powerful platform for harmonized and comprehensive data relevant for Council and States for strategic planning and decision making • Easy access to large time series of data with interactive functionality • Visual analytics which facilitates States’ decision making, covering all aspects of air transport • Least expensive costs with latest technology and cloud-based infrastructure

73 Demonstration of Business Analysis Tools Access through ICAO eTOOLS Website www4.icao.int/etools

• Distribute free “authorization codes” to Council members, Member States and Secretariat on a regular basis

• Business Analysis Tools currently available: – International traffic mapping and data tool – Air services agreement (WASA) visualization – Aeronautical treaty map – iStars applications (integrated)

74 Demonstration of Business Analysis Tools International traffic mapping and data tool

75 Demonstration of Business Analysis Tools Air services agreement (WASA) visualization

76 More information available at: www.icao.int

Thank you Merci 谢谢 ﺷﻛﺭﺍ Gracias спасибо

77