Date: 12/08/2003
Source: Ministry of Transport
Title: Omar: Aviation & Allied Business Leadership Conference
ADDRESS BY ABDULAH M. OMAR, MP, MINISTER OF TRANSPORT, REPUBLIC OF SOUTH AFRICA, AT THE NINTH AVIATION AND ALLIED BUSINESS LEADERSHIP CONFERENCE, Johannesburg, Sandton Convention Centre, 12 August 2003
Chairperson,
Distinguished delegates.
Let me first thank the organisers of this conference, the Aviation and Allied Business magazine for inviting us to this prestigious gathering. I also want to take this opportunity to thank all of you for your support during our election to the council of ICAO in April this year. I have been advised that the theme of this conference is "Air transport as a key to Africa's economic development". The importance of gatherings such as this in finding solutions to challenges facing our continent cannot be over emphasised. This point was central to our leaders developing an integrated development programme for the continent.
The New Partnership for Africa's Development (NEPAD) is an acknowledgement by African leaders that decisive action is necessary. It is a programme by African people to find solutions to Africa's challenges. The NEPAD programme is underpinned, amongst others, by integrated multifaceted sub-programmes, which include peace, democracy and good governance, economic, infrastructure, and human resources development, the environment and science and technology.
As the programme states: "In Africa, 340 million people or half the population, live on less than $US1 per day. The mortality rate of children under five years of age is 140 per thousand, and life expectancy at birth is only 54 years. Only 58 percent of the population has access to safe water. The rate of illiteracy for people over 15 is 41 percent. There are only 18 mainline telephones per 1 000 people in Africa, compared with 146 for the world as a whole and 567 for high-income countries".
What role then can the air transport industry play?
We cannot take comfort in the fact that the African continent is generally characterised by poor financial performance of airlines because of low volumes; small airlines lack economies of scale; high insurance costs; and low productivity - resulting in closure of some airlines; inadequacy of regional air services - it is difficult to travel from one point in Africa to another. Often the best route from point A to point B in Africa is via Europe. High user charges at some of African airports, not matched by corresponding levels of service; serious deficiencies in air traffic control over much of Africa's airspace; unsatisfactory security at many of the continent's airports; and a need to improve and increase the training of air transport staff both on the air-side and ground-side.
Some of the initiatives that have been embarked upon on the continent in response to this situation include the Yamoussoukso decision, the Upper Airspace Control Centre, ICAO aviation environmental protection initiatives, COSCAP (a joint aviation safety initiative with ICAO), the Cape Town Protocol and implementation of some of the recommendations of the recent ICAO worldwide conference.
Implementation of the Yamoussoukro decision
The Yamoussoukro decision was a response to many of the challenges highlighted above. It provides for a framework for the gradual liberalisation of the African air transport market. All the five sub regions on the continent have embarked on processes to find effective implementation programmes for the Yamoussoukro decision. In the SADC sub region competition rules and arbitration procedures have been developed and are currently awaiting approval.
Upper Airspace Control Centre (UACC)
The UACC is a sub regional effort to improve safety of flight in our airspace. A feasibility study for this project has been finalised. At the moment the sub region is determining the nature and scope of any possible impact on the lower airspace emanating from the anticipated establishment of the UACC.
Environmental issues
The area of aircraft noise and engine emissions requires a balance to be established between the interests of airport operators and the public affected by aircraft noise and engine emissions. We need to find mechanisms to ensure that noise abatement procedures are developed and adhered to. One difficult area is the phasing out of chapter 2 aircraft and the non-addition of these aircraft on to fleets of both domestic and international operators. This is largely a safety issue as most of these aircraft will be around 30 years old by the end of the 7-year period.
Aviation safety
Globalisation and the international nature of aviation require a high degree of standardisation of aviation safety. A fragmentation of standards and the recommended practices can only hamper the development of a truly safe and global aviation industry. Within SADC we have established partnerships for the implementation of Communications Navigation Surveillance (CNS) Air Traffic Management (ATM) systems. The Very Small Aperture Terminal (VSAT) system, installed to improve communication between air traffic units in the region, is operational in 13 of the 14 SADC States.
These and other safety related matters will also be addressed in the COSCAP project together with ICAO.
Aviation security
The global aviation community has not yet recovered from the devastation caused by the events of 11 September 2001 in the United States. That unfortunate event has had a devastating impact on air transport in its entirety; including airports; airlines; air navigation services and ground handling. As a result the International Civil Aviation Organisation has proposed a global aviation insurance scheme; which is backed by governments guarantees. We are waiting in anticipation of this scheme becoming a reality.
Cape Town Convention and Protocol
The main objectives of this protocol is to facilitate the international leasing and asset-based financing of aircraft and aircraft equipment by setting rules designed to reduce the cost of such transactions. The treaty provides for the creation of an international registration system with a registry for international security rights in aircraft equipment. International registration will reduce the risks of lending for aircraft financiers, banks, and other financing institutions involved in aircraft purchasing and leasing, this reducing the cost of credit. As financing and leasing costs represent an average of about 8 percent of total operating expenses of international scheduled airlines, this is expected to contribute to a much-needed reduction in costs for the airline industry.
The ratification of this protocol would no doubt create economic opportunities for the continent.
Worldwide conference
As you know, ICAO convened the 5th Worldwide Air Transport Conference during March this year. The main purpose of the conference was to formulate guidelines for further liberalisation of the global air transport market, whilst taking into account unique challenges facing developing nations. The conference has come up with a set of guidelines on important aspects such as carrier ownership and control, aircraft leasing and liberalisation of cargo services. These guidelines may be used by countries at their own discretion.
It is evident that as a continent, together with our partners in the global economy, we do face enormous challenges. However, we are confident that as experts attending this ninth aviation and allied business leadership conference you will assist the process through the development of options and solutions for the benefit of the African continent.
We thank you
Issued by Ministry of Transport
12 August 2003
Source: Ministry of Transport
Title: Omar: Aviation & Allied Business Leadership Conference
ADDRESS BY ABDULAH M. OMAR, MP, MINISTER OF TRANSPORT, REPUBLIC OF SOUTH AFRICA, AT THE NINTH AVIATION AND ALLIED BUSINESS LEADERSHIP CONFERENCE, Johannesburg, Sandton Convention Centre, 12 August 2003
Chairperson,
Distinguished delegates.
Let me first thank the organisers of this conference, the Aviation and Allied Business magazine for inviting us to this prestigious gathering. I also want to take this opportunity to thank all of you for your support during our election to the council of ICAO in April this year. I have been advised that the theme of this conference is "Air transport as a key to Africa's economic development". The importance of gatherings such as this in finding solutions to challenges facing our continent cannot be over emphasised. This point was central to our leaders developing an integrated development programme for the continent.
The New Partnership for Africa's Development (NEPAD) is an acknowledgement by African leaders that decisive action is necessary. It is a programme by African people to find solutions to Africa's challenges. The NEPAD programme is underpinned, amongst others, by integrated multifaceted sub-programmes, which include peace, democracy and good governance, economic, infrastructure, and human resources development, the environment and science and technology.
As the programme states: "In Africa, 340 million people or half the population, live on less than $US1 per day. The mortality rate of children under five years of age is 140 per thousand, and life expectancy at birth is only 54 years. Only 58 percent of the population has access to safe water. The rate of illiteracy for people over 15 is 41 percent. There are only 18 mainline telephones per 1 000 people in Africa, compared with 146 for the world as a whole and 567 for high-income countries".
What role then can the air transport industry play?
We cannot take comfort in the fact that the African continent is generally characterised by poor financial performance of airlines because of low volumes; small airlines lack economies of scale; high insurance costs; and low productivity - resulting in closure of some airlines; inadequacy of regional air services - it is difficult to travel from one point in Africa to another. Often the best route from point A to point B in Africa is via Europe. High user charges at some of African airports, not matched by corresponding levels of service; serious deficiencies in air traffic control over much of Africa's airspace; unsatisfactory security at many of the continent's airports; and a need to improve and increase the training of air transport staff both on the air-side and ground-side.
Some of the initiatives that have been embarked upon on the continent in response to this situation include the Yamoussoukso decision, the Upper Airspace Control Centre, ICAO aviation environmental protection initiatives, COSCAP (a joint aviation safety initiative with ICAO), the Cape Town Protocol and implementation of some of the recommendations of the recent ICAO worldwide conference.
Implementation of the Yamoussoukro decision
The Yamoussoukro decision was a response to many of the challenges highlighted above. It provides for a framework for the gradual liberalisation of the African air transport market. All the five sub regions on the continent have embarked on processes to find effective implementation programmes for the Yamoussoukro decision. In the SADC sub region competition rules and arbitration procedures have been developed and are currently awaiting approval.
Upper Airspace Control Centre (UACC)
The UACC is a sub regional effort to improve safety of flight in our airspace. A feasibility study for this project has been finalised. At the moment the sub region is determining the nature and scope of any possible impact on the lower airspace emanating from the anticipated establishment of the UACC.
Environmental issues
The area of aircraft noise and engine emissions requires a balance to be established between the interests of airport operators and the public affected by aircraft noise and engine emissions. We need to find mechanisms to ensure that noise abatement procedures are developed and adhered to. One difficult area is the phasing out of chapter 2 aircraft and the non-addition of these aircraft on to fleets of both domestic and international operators. This is largely a safety issue as most of these aircraft will be around 30 years old by the end of the 7-year period.
Aviation safety
Globalisation and the international nature of aviation require a high degree of standardisation of aviation safety. A fragmentation of standards and the recommended practices can only hamper the development of a truly safe and global aviation industry. Within SADC we have established partnerships for the implementation of Communications Navigation Surveillance (CNS) Air Traffic Management (ATM) systems. The Very Small Aperture Terminal (VSAT) system, installed to improve communication between air traffic units in the region, is operational in 13 of the 14 SADC States.
These and other safety related matters will also be addressed in the COSCAP project together with ICAO.
Aviation security
The global aviation community has not yet recovered from the devastation caused by the events of 11 September 2001 in the United States. That unfortunate event has had a devastating impact on air transport in its entirety; including airports; airlines; air navigation services and ground handling. As a result the International Civil Aviation Organisation has proposed a global aviation insurance scheme; which is backed by governments guarantees. We are waiting in anticipation of this scheme becoming a reality.
Cape Town Convention and Protocol
The main objectives of this protocol is to facilitate the international leasing and asset-based financing of aircraft and aircraft equipment by setting rules designed to reduce the cost of such transactions. The treaty provides for the creation of an international registration system with a registry for international security rights in aircraft equipment. International registration will reduce the risks of lending for aircraft financiers, banks, and other financing institutions involved in aircraft purchasing and leasing, this reducing the cost of credit. As financing and leasing costs represent an average of about 8 percent of total operating expenses of international scheduled airlines, this is expected to contribute to a much-needed reduction in costs for the airline industry.
The ratification of this protocol would no doubt create economic opportunities for the continent.
Worldwide conference
As you know, ICAO convened the 5th Worldwide Air Transport Conference during March this year. The main purpose of the conference was to formulate guidelines for further liberalisation of the global air transport market, whilst taking into account unique challenges facing developing nations. The conference has come up with a set of guidelines on important aspects such as carrier ownership and control, aircraft leasing and liberalisation of cargo services. These guidelines may be used by countries at their own discretion.
It is evident that as a continent, together with our partners in the global economy, we do face enormous challenges. However, we are confident that as experts attending this ninth aviation and allied business leadership conference you will assist the process through the development of options and solutions for the benefit of the African continent.
We thank you
Issued by Ministry of Transport
12 August 2003
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