J Radebe on signing of bilateral air services agreement between South
Africa and Switzerland

Signing of bilateral air services agreement between South
Africa and Switzerland

8 May 2007

Pretoria: The Governments of South Africa and Switzerland have today signed
a Bilateral Air Services Agreement that supersedes the original Agreement
signed on 19 October 1959. Since 1992, South Africa has embarked on the review
and modernisation of all its bilateral air services arrangements. This process
was accelerated since 1994, following the establishment of the democratic
Government and subsequent worldwide support for the country's transformation
agenda.

Tourism is a significant driver of economic growth in a number of countries.
The contribution of the tourism sector to the South African economy, through
air transport, has increased substantially, growing from approximately one
million tourist arrivals in 1990 to over seven million in 2006. Even in this
context of growth, we have identified certain aviation constraints potentially
hindering the development of the tourism sector.

These include instances where the absence of an integrated network approach
towards air services serving South Africa and its key markets has created
problems of capacity. Furthermore, it has also become clear that, in the
context of a global trend towards rapid economic liberalisation, full alignment
between bilateral air services frameworks and national policies and strategies
is vital for accelerated and sustainable economic growth.

The role of government in a globally competitive environment should also be
clearly defined to facilitate the creation of an enabling regulatory framework
to allow for greater access and competition in the industry, whilst allowing
for flexibility to serve unique markets.

In this context, the South African Government on 26 July 2006 approved a
five-year strategy for the regulation of air transport in support of the
Accelerated Shared Growth Initiative for South Africa (AsgiSA) through among
other things, unblocking obstacles to growth through regulatory mechanisms and
bilateral and multilateral air services negotiations. The Strategy supports the
Millennium
Development Goals and the objectives of the New Partnership for African
Development (NEPAD) to increase African connectivity and access through the
accelerated implementation of the Yamoussoukro Decision.

The overall objective of the Airlift Strategy is to increase aviation's
contribution towards sustainable economic growth and job creation. In
particular, the Strategy aims at enhancing the prospects of South Africa as a
preferred air travel destination and to synchronise the basis for bilateral air
services negotiations with other national priorities.

The initial Air Services Agreement between the Union of South Africa and
Switzerland was signed on the 19th of October 1959 and, therefore, in urgent
need for modernisation due to the many changes that occurred in the aviation
environment during the past 48 years. Consultations between our States
culminated in the new Bilateral Air Services Agreement signed today,
incorporating all the key elements as reflected within our Airlift Strategy,
including:
* the principle of multiple designation of airlines
* a liberal double disapproval tariff regime
* a flexible route schedule.

I am please to note that Swiss International Airlines is currently operating
six flights per week between Zurich and O R Tambo International Airport with
the current bilateral framework allowing for an increase to 12 flights per
week. Switzerland, as part of the European Region, has been identified as an
important market in terms of the Airlift Strategy. Zurich is a strategic hub
for passenger connectivity to South Africa, and this will allow for a
significant inflow of tourist and business related traffic to South Africa,
more especially as South Africa progresses towards the 2010 FIFA World Cup
event. Such commitment between our two countries will certainly contribute to a
successful 2010 event.

Enquiries:
Collen Msibi
Cell: 082 414 5279

Issued by: Department of Transport
8 May 2007

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