Aviation and Economic Development Summit
15 November 2007
Let me first express my gratitude for the invitation to be part of the panel
on this very important topic of Aviation and Economic Development. This Summit
is a clear manifestation of our mutual wish to strengthen our relations in
civil aviation, which, without any doubt, provides new opportunities and added
value to all nations.
Quite frankly, aviation has a unique virtue to bring people closer together,
promotes economic growth and facilitates trade. It also plays a crucial role in
the wider economic development of society, within Africa, and of course between
Africa and other continents. I strongly believe that, within this contexts,
Africa has an aviation success story to tell.
In particular, as South Africa we cannot talk aviation and economic
development without a brief reference to the strides we have made in placing
civil aviation at the centre of our economic growth and improved connectivity
of our people with the rest of the world.
A quick glance at our air transportation tells an interest story which a
decade ago only existed in our dreams. As South Africa, the aviation industry
has played an extremely important role in the achievement of our sustainable
growth. The expansion of domestic and international air services has become a
prerequisite for the development and growth in our various sectors such as
tourism, business and trade facilitation.
A decade ago, our passenger growth particularly the rate of domestic growth
was at 7,5 percent compared to the global rate of three percent. Similarly,
while global international traffic grew at an average of 7 percent during this
period, South Africa experienced an international passenger growth rate of
approximately 8,5 percent and is now way beyond 10 percent mark per annum.
This has been driven by an increased volume of international traffic flowing
into the country. For example, in 1993, South Africa received not more than 12
international airlines. But today more than 70 international airlines fly into
the country on a regular basis, with more than 100 air transport services
agreements in place and the recent entry of new foreign carriers such as Delta,
Thai Airways and Virgin Nigeria and an increased in international passenger
arrivals.
In particular, our Airports Company South Africa has had to handle 16,8
million departing passengers annually and currently experiencing an annual
growth of 10,8 percent. This positive growth in passenger numbers is largely
due to the domestic passenger market driven by stable economy and Growth
Domestic Product (GDP) growth of about four percent. The deregulation of our
industry in the 90s has also resulted to a proliferation of low-cost airlines
making it more affordable to use air transportation.
With an increase in passenger traffic, Airports Company South Africa (ACSA)
has also had to increase its airports investment to R19,3 billion for the
infrastructure development programme at its network often airports over the
next five years including the building of the new airport in Durban, in order
to ensure the provision of infrastructure capacity ahead of demand.
The driving force behind this growth has been the development and
implementation of our five-year Airlift Strategy to put in place effectively
structured regulatory measures in order to increase tourism growth for South
Africa and to unblock obstacles through regulatory mechanisms and bilateral and
multilateral air services negotiations.
In particular, the strategy supports the Millennium Development Goals (MDGs)
and the objectives of New Partnership for Africa's Development (Nepad) to
increase African connectivity and access through the accelerated implementation
of the Yamoussoukro Decision. The overall objective of the airlift strategy has
been to increase aviation's contribution towards sustainable economic growth
and job creation. But more importantly to provide guidelines for various unique
markets with emphasis on the needs of intra-African air services.
We believe that our strategy has been able to promote the provision of
adequate air service capacity and infrastructure to cater for the projected
growth in air movements within South Africa and between South Africa and its
key international partners.
Ladies and gentlemen, but I must emphasise that these success stories have
not gone without significant challenges associated with human resources and
capacity development as well as aviation safety and significant global air
traffic demand, not only for South Africa but for the continent as the
whole.
The subject of aviation human resources and capacity development has become
one of the most important issues today and presents a primary barrier to growth
of the industry. The industry has changed a great deal over time especially
with regard to globalisation, airline alliances and mass migration of
specialised skills. Obviously the human capacity issue has had an adverse
effect on aviation within the continent and in effect has resulted in placing a
tremendous strain on cardinal bodies, such as airport management, civil
aviation oversight authorities, airlines and air traffic and navigation
services. This effect has a direct correlation to manufacturers of aircraft and
related equipment.
As you know, human capital makes up an essential component of this industry,
a component that by no means is in abundance in Africa. Our talented and
skilled professionals are being lured to other parts of the world, with
negative impact to Africa. With the increased growth in aviation, and annual
growth projected at 6 percent for Africa, human capacity constraints has
resulted in an added barrier for this ever-dynamic industry, and it has the
unquestionable potential of hindering growth within the aviation industry.
Given this context, it is critical that Africa's air transport industry
jointly with its global partners consider a strategy to enhance human capital
growth and development. The economic contribution that this industry makes is
immense and with the continued growth prospects, it is expected that a
successful human capital strategy will culminate to a significant benefit for
air transportation in Africa and its suppliers of aircraft.
We also need to pay particular attention to ways of improving global air
safety. African aviation forms a small percentage of the overall international
activities yet represents a significant level of accidents at an international
level. It is prudent to note that a large percentage of these accidents are as
a result of the use of older generation aircraft. This is compounded by the
fact that older generation aircraft are environmentally unfriendly. This is a
challenge however I am convinced that we have strong partners such as Boeing
who will jointly assist us in addressing these challenges.
Africa has about 500 national airports, about 117 international airports and
more than 1 000 other airfields. These figures are a true reflection of how the
expansion of our aviation industry will strengthen the economy and boost growth
in job creation and investment.
Our success depends on stable operating environments, sound governance
systems, trained and skilled employees as well as stronger partnerships thus
strengthening the steps we take into the future.
The implementation of the liberalisation of African skies is also a key
component in order to enhance growth within the industry and trade sectors of
the African economies. The implementation of the Yamoussoukro Decision is a
major milestone which must come to fruition to liberalise the African Airspace
and integrate African carriers. However, this decision is yet to be fully
implemented even when African. States continues to claim their signature status
of the treaty. The African Union has its work cut out to ensure that all States
subscribe to the implementation of this Decision.
Safe Skies remains the epitome of our objective in aviation. The safe skies
for Africa initiative is still part of the vision for strengthening Africa's
relationship with the United States of America.
This initiative has amongst its goals the need to improve regional air
navigation services. This is an area, which we have aggressively pursued. I am
pleased to note that recently in Montreal; we celebrated the implementation of
the Cape to Cairo The Very Small Aperture Terminal (VSAT) communications
network.
As air navigation service providers in the Southern Africa and North East
Africa region, we have developed a solution for our communication needs based
on the unique requirements and challenges of Africa.
The Southern African Development Community (SADC) VSAT and the NAFISAT
networks are an embodiment of our efforts to create safer skies. Our SADC
technology network connects the air traffic control centres in the 13 SADC
states and seven sites in West Africa. And allows for the transmission of voice
and data communication via satellite network thus providing the required voice
and data circuits where there were previously limited or no services.
We have therefore been able to solve our challenges through regional
co-operation. Our efforts will continue in ensuring that we have the most
appropriate navigational aids thus assuring all that we indeed do have safe
skies in which aircraft such as the Dreamliner may fly through.
We remain steadfast in operating a safe aviation environment. And Nepad has
within its list of projects the establishment of Upper Airspace Control
Centres, the establishment of Joint Safety Oversight Units. This initiatives
supported by both local and international industry stakeholders will ensure
that we achieve and maintain a safer aviation environment.
Our trading relationship with the United States of America has also been
very strong. I am aware of the impending need of aircraft manufacturers for
titanium. South Africa has the second largest raw material deposit of titanium
in the world, and this supported by good infrastructure, a skilled workforce
and good aerospace manufacturing capacities, allows us an opportunity for a new
partnership with aircraft manufacturers such as Boeing.
I believe that we have the ideal opportunity to craft a new mutually
beneficial partnership in aviation. Aircraft built with the most advance
materials, best operating crews, well-managed navigational systems, and good
safety oversight administration will ensure that we are all safe and secure,
when we cross the continent and the Atlantic Ocean.
I thank you.
Issued by: Department of Transport
15 November 2007
Source: SAPA
