Efficient infrastructure provision, maintenance critical to air safety, says Tyler, IATA boss

HOW would you assess aviation industry in Africa today?
It is a pleasure to be here in Lagos. This is my first visit to Nigeria. It
is great to see such a gathering of leaders for this Aviation Day.
Aviation supports 6.7 million jobs and some $68 billion of economic
activity in Africa. Those numbers themselves are impressive and behind
them are countless real life examples of how aviation enriches lives
across this vast continent. As you can see, I am passionate about
aviation and I firmly believe we have only begun to realise the
potential for aviation in Africa. Since becoming the director-general/ chief executive officer of IATA just over two years ago, it is among thedestinations that I have visited most often. Of course, it is a vast continent and I know that I have only just scratched the surface in exploring it. But it is absolutely clear to me that aviation can and with our combined efforts, will contribute even more to Africa’s
development.
Earlier this year, we showcased Africa’s potentials to the aviation world as we held our annual general meeting in Cape Town, South Africa. It was only the third time that the event has been hosted on African soil and it occurred at a golden moment in Africa’s development. This year,
we are celebrating the 50th anniversary of the African Union. Africa is poised for rapid development and great changes. Half of the fastest growing economies over the next five years are expected to be on this
continent. Aviation will not be a passive beneficiary of growth. Its role in driving growth and development will grow even more prominent.
You did give a deadline for African airlines to be IATA Operation
Safety Audit (IOSA) compliant. Aside that, I don’t know what level
of partnership IATA has with African countries to upgrade
infrastructure in the area of airports’ development.
It is clear that IOSA is making a difference, not just in Africa but also in safety globally. In each year since 2008 when IOSA became a
condition for IATA membership, IOSA carriers have performed better than those that have not been audited to its 900+standards. African governments have recognised the need to improve safety and the Abuja Declaration sets out a comprehensive approach to reaching world-class safety by 2015. I should take a moment to commend Nigeria for the important role that it played in building the political will to reach this agreement. The Declaration focuses on the establishment of independent and sufficiently funded civil aviation authorities, implementation of effective and transparent safety oversight systems by all African states, completion of IOSA by all African carriers, implementation of accident prevention measures
focused on runway safety and loss of control, implementation of flight
data analysis and implementation of safety management systems by all service providers.
Is Africa doing enough to raise the bar in aviation safety? No priority is greater than safety and Africa’s performance is well below what we are achieving globally. In 2012, African airlines had one accident (with a western built jet aircraft) for every 270, 000 flights.
Globally, the industry average was one accident for about every five
million flights. Put another way, African aviation accounts for about
three per cent of global traffic. Last year, it accounted for nearly half
of the fatalities on Western built jets. While these figures are a
shocking call to action, I must say that 2012 also gave us cause for
optimism. None of the 25 IATA members in Africa (17 in sub-Saharan Africa and eight in North Africa) had an accident. None of the 384 airlines on the IATA Operational Safety Audit (IOSA) registry had a jet hull loss including some three dozen carriers on this continent. Linking
this together is the common theme of global standards. IATA is
actively contributing its expertise and resources to all the Abuja
Declaration’s commitments. We are paying special attention to IOSA.
Having African carriers on the IOSA registry demonstrates that IOSA’s
global standards are achievable by carriers on this continent, but I
recognise that it will be a challenge. We are doing workshops with
governments and carriers across Africa, and through the International Aviation Training Fund (IATF). We are sponsoring ten African airlines with in-house training to achieve IOSA registration. Gap analysis for
nine of these airlines is complete and the last one will be done in
November.
In what ways can governments in this clime help airlines to
achieve these high safety standards? I will take this opportunity, with so many African governments represented here, to urge them to make IOSA mandatory. So far, Egypt and Madagascar are the only governments on the African continent to have done so. More governments joining them will send a signal that Africa is serious about the Abuja Declaration commitment. IOSA can assist governments in safety oversight, but it is not a substitute for
effective safety oversight by civil aviation authorities. The results of
the International Civil Aviation Organisation (ICAO) Universal Safety Oversight Audit Programme (USOAP) are very telling. As of the end of 2012, only 11 African states have achieved 60 per cent implementation of ICAO’s safety related standards and recommended practices (SARPs).
Two of those were newcomers to the list-Mauritania and Sudan. There is improvement, but over 40 states are below this important
benchmark. Meeting the Abuja Declaration’s 2015 commitment will
require a major acceleration in the pace across the continent. We have
two years, three months and 14 days before the end of 2015. A lot of ground needs to be covered and we cannot lose momentum. IATA is a committed partner and I hope that over the next days, as we will
develop an even better understanding of how we must work together as a team of stakeholders to deliver world-class safety to Africa. While we are focusing on safety, I will need to address two further issues.
The first is to encourage states to submit data to the Air Operator’s
Certificate database hosted by ICAO. Cape Verde is among the first five states to provide data and the only one from Africa. The data will perform a vital role in helping the industry to manage the proliferation of operational specifications that are being introduced. I hope that Nigeria will be among states submitting by year end. The second is to
comment on the European list of banned airlines. How can African airlines get out of the blacklist of European Union?
The Abuja Declaration has spurred work across Africa to improve
safety. This stands in stark contrast to Europe’s misguided banned list,
which lacks transparency needed to guide actions. But as ineffective
and unfair as it may be, I don’t see any signs of a change in Europe’s
approach. Already, Africa is united, under the leadership of an African
Union declaration in efforts to achieve world-class safety performance.
It cannot be disputed that the major part of the African industry is
performing well and in line with global performance levels but the
overall safety performance still indicates a gap. I am convinced that successfully delivering on the Abuja Declaration’s target will deliver safety improvements that Europe cannot argue with, that is why IATA is here, engaged and committed, and in anticipation of that success, I can see the African Union taking on a role as interlocutor with Europe on how to reflect these imminent improvements that we all hope for in a revised approach by Europe.
How about infrastructure challenges?
Alongside safety, infrastructure development is also a critical challenge for Africa. Some of the challenges are physical infrastructure in many parts of Africa needs to improve. Recently, I was briefed on improvements to Lagos airport, Nigeria’s main gateway. From the ambitious project, it is clear to me that Lagos wants to continue as a main hub for aviation in this part of Africa. Nigeria is also investing in its air navigation services infrastructure. It is one of the leaders in
performance based navigation implementation in Africa. I am pleased to note that Ghana is also strategically planning for aviation
connectivity to be a key component of its economic development.
Although, I have yet to visit, my team has given me positive reports on ambitious expansion plans there. Aviation infrastructure built to global standards, on the ground, in the air is one of the foundation stones for a successful air transport sector and I must say that I am pleased that so many governments in this part of the world, Ghana and Nigeria are taking advantage of IATA’s expertise in reflecting user needs as infrastructure is developed.
Which other areas of infrastructure is IATA not happy with Nigeria?
As I am in Lagos, my members would be disappointed if I did not
mention one piece of physical infrastructure that is in desperate need of urgent attention. That is the fuel transportation infrastructure from Apapa Terminal to the airport. It goes without saying that fuel supply
reliability is crucial. We need to find a sustainable long-term solution to this long-standing problem. The vandalised pipeline is no longer in use. Trucking fuel through dense traffic for storage on site is inefficient and costly and making unscheduled technical stops to top up fuel causes schedule disruptions and inconveniences for passengers
on top of the direct costs of a technical stop. Without making light of the challenges involved, I know that there are many and complex; securing a few kilometres of pipeline is not an impossible task. We are working with the oil industry to find a solution and we will be seeking the government’s political will to help us make it happen. Ensuring fuel reliability is critical to Lagos’ future as a hub for connectivity across South-West Africa.
How about infrastructure policy issues? Aside from the physical infrastructure, there are infrastructure policy issues, which must be addressed. Most of these concern charges. As with safety, global standards exist to provide guidance. ICAO has clear
principles on charges. These include cost relatedness, non-
discrimination and transparency. It also recommended that charges be
developed in consultation with users and there should be no pre-
financing.

How do we curtail high airport taxes, charges in Nigeria and other
African countries? In Africa, there are too many exceptions to the pragmatic approach that has been agreed internationally. Let me give you a few examplesto illustrate. In Senegal, airport charges include an infrastructure development fee. If airlines and their passengers were enjoying a beautiful new modern and efficient facility that might be acceptable, good but they are paying for an airport that is still under construction. You would not charge a toll for a bridge that is not yet built. ICAO principles indicate that the same approach should be
followed here. The Senegal case also highlights the issues with lack of transparency and consultation. On a per passenger basis, total charges are well in excess of even the most expensive European airport. As there has been little if any consultation with the airlines on the project. There is not even the assurance that we are paying for something that we will eventually want. There is also an emerging trend in security charges that is worrying. Some governments are
agreeing to broad security and facilitation contracts without prior
industry consultation and when we start discussions, we find that non-
aviation items have been thrown in; the cost of securing land borders
for example. I am pleased to see the delegation from Sierra Leone
here. We are working closely to resolve successfully a very similar
situation. As we are here in Nigeria, I must also mention that we are
working closely with the government to resolve the differential
charging regimes for air navigation services between international and
domestic operations. On top of charges for services, we also see many
governments looking to aviation as a source of funding. A number of
revenue raising regimes exist-solidarity taxes, tourism taxes, VAT and
sales taxes and so on.
Don’t you think government needs to recoup funds invested in
aviation infrastructure with the introduction of multiple taxes
and charges, which are exorbitant?
The industry is reasonable. We understand that infrastructure needs to
be paid for. We also believe that aviation should not have a free ride
on taxes. As with any industry or activity, governments have the right
to levy reasonable taxes while understanding the economic costs and
benefits of the action. We equally realise that Africa has become very
fundamental problems such as combating poverty, fostering
development and improving education, all of which need to be funded.
What I am asking for today is government’s consideration of this issue
holistically and strategically. Aviation is an economic driver. Its
success can stimulate economic activities and generate wealth on a
scope and scale that is well beyond what could be extracted from the
industry in tax and that will go a long way to solving some of the other
problems that government face. Governments must recognise that
every dollar counts. If we average the entire industry’s profits for
2012, airlines retained about $2.50 for every passenger and African
airlines have been hovering around break-even for a decade or more.
Even a small tax or charge can turn an operation from profit into loss.
Even if services are maintained, they will not grow connectivity as
robustly, limiting economic growth potential. I would like to commend
the government of Ghana for giving us an example of leadership in this
area. Ghana is focused on keeping its costs competitive with a series
of measures. The latest was the restructuring of fuel charges that
eliminated a subsidy paid by aviation to other fuel users and the boom
in Ghanaian aviation that started in 2009 continues. So, I would
propose that government keeps the costs of connectivity competitive.
Plan to pay for infrastructure, both in physical infrastructure and in
training to develop the skills and talent necessary to grow connectivity.
The stronger that we are able to make the aviation business in the
continent, the better prepared it will be to attract the financing for
fleet expansion. Over the next two decades, the African industry will
need in the range of 1, 000 aircraft requiring some $130 billion in new
capital. That won’t come if the industry’s finances are not in order. I
will not go into detail on that. It is a complex subject.
What’s your take on liberalisation of aviation industry?
Aviation is a highly regulated industry and the hand of government for
various historical reasons extends to regulating market access in ways
that are not applied to any other industry. Africa’s economic
development needs connectivity. People need to meet in order to do
business. Products need to be shipped to buyers. Remote locations
need access to global markets. The continent is too big and the thirst
for fast connectivity is too strong for road or rail to satisfy. Africa’s
main rivers are physically unable to function as trade routes.
Eventually, we will see land infrastructure develop but building a road
gets you from A to B whereas laying a runway connects you from A to
the world. Ironically, connectivity from Africa to other continents is
more developed than connectivity within the continent. Lagos is one of
the better-connected cities in Africa. There are daily flights to Atlanta,
but not to Dakar or Abidjan and there are more flights to London than
there are to Nairobi. Even as African economies grow, we are seeing an
almost perverse trend in connectivity. So far this year, international
traffic to/from West Africa is up about eight per cent but traffic
amongst the 18 countries in the region is down by over 10 per cent.
Africa has a visionary framework for growing connectivity across the
continent in the now epic story of the Yamoussoukro Declaration,
which started in 1988. There has been some progress but it is far
from being transformational as intended. It is interesting to see that
African governments find it somehow easier to expand bilateral
arrangements with long hauly trading partners than invoking
Yamoussoukro to develop connectivity within the region. I am not
suggesting that Africa should have over 50 hub-one per country, but if
we look at Africa as a whole, there are major connecting hubs in the
North (Cairo), the East (Addis Ababa and Nairobi) and the South
(Johannesburg). There is certainly scope to develop greater hub
connectivity in West Africa.
Any hope for the sector in Africa?
I am optimistic on African aviation. I believe that we are facing a great
moment in the industry’s development. The Abuja Declaration brings
together the political will as never before to tackle the African safety
problem once and for all. There are some good examples emerging
across Africa of governments that understand aviation’s potential to
contribute to development and are making the investments needed to
achieve it and the robust economic growth in Africa is generating
demand for connectivity, both across Africa and with the world. The
way ahead will be challenging but if industry and government work
together as partners with a common purpose and strong vision for
economic development fueled by aviation connectivity, I am confident
that we will achieve great things as an industry.