Speech delivered by the Minister of Transport, Ms Sindisiwe Chikunga, on the occasion of the Airline Representative of South Africa Aviation Summit held at Century City, Cape Town on 10 March 2023 at 09h00
Programme Director, Ms Lerato Mbele
Deputy Minister, Mr Lisa Mangcu
Premier of the Western Cape, Mr Alan Winde
Chief Executive Officer of BARSA, Mr George Mothema
Chief Executives of our Aviation entities
Captains of the Aviation Industry
Ladies and Gentlemen
I am deeply honoured that my first public engagement as Minister of Transport is with captains of industry in the Aviation sector. A sector that plays a pivotal role in our economy and connecting us to the world.
Emerging from the devastation of the COVID-19 pandemic, with the aviation sector bearing the brunt of this devastation, we have learnt invaluable lessons that will inform our new trajectory and growth. The impact of the pandemic on airlines, airports, navigation services and other industries reliant on the sector cannot be downplayed.
Programme Director,
The recovery of this sector is going to require new partnerships that not only enable faster recovery, but also give expression to the new economy premised on creating opportunities for investment, employment and skills development.
The economic landscape is evolving with new opportunities to build afresh. While our national carrier continues to fly the South African flag, the market within which it operates is fundamentally different from what it was 5 years ago. These are the realities with which we must contend with as we re-align our policy trajectory informed by the current realities.
Captains of the Industry,
The development and growth of South Africa’s aviation sector is amongst others anchored on our integrated development that will be delivered through investment in the concept of aerotropolis in our major economic hubs.
This requires seamless integration of airport infrastructure as a foundation for economic activity delivered through special economic zones and other forms of economic activities.
The economic downturn, further exacerbated by the geo-political conflict that we have recently been experiencing, has introduced additional challenges that directly impact on the sustainability of the aviation industry.
This has brought us to a point where we must have serious conversations about a viable aviation fuel future.
These political dynamics pit one sector against another as our airports rely on petroleum companies to refuel.
To this end, ACSA has initiated a conversation in this regard, which requires of us to seriously consider the implications of enabling the Airports Company South Africa to directly provide fuel to airlines and reduce dependency on petroleum companies that easily get entangled in the geo-politics due to their multi- national ownership.
This reality as experienced in real-time must further encourage us to look at alternative sources of energy, which include green energy to enable a transition from fossil fuels. At present, these discussions are already taking place at ICAO level; and we should make strides that will enable us to make a noteworthy contribution into bringing about a viable aviation fuel future and embracing low carbon aviation fuels.
I have no doubt, that the deliberations will deal with this matter incisively and make recommendations that will take us forward.
The White Paper on National Transport Policy
Ladies and gentlemen,
The White Paper on National Transport Policy approved by Cabinet and Gazetted in May 2022 articulates South Africa’s national transport policy in an unambiguous manner. There is absolute certainty about the Transport Policy across all modes. The White Paper also deals comprehensively with Aviation Policy and the critical drivers of that policy.
In 2017, Cabinet approved the White Paper on the National Civil Aviation Policy. I must inform you that, currently we are finalising the review of the 2017 White Paper to create alignment with the overarching Transport Policy to respond to the realities brought about by the COVID-19 pandemic.
The Transport Economic Regulator
The role of the Transport Economic Regulator that will be established once the Economic Regulation of Transport Bill has been passed by Parliament, will go a long way in bolstering the competitiveness of the aviation sector.
It is our national policy that the Transport Economic Regulator should assist in addressing the current challenges faced in regulating domestic air transport through introducing regulatory
independence, predictability and stability. The degree of functional overlap, as well as desirability of merging the air service licensing bodies to achieve maximum efficiency and effectiveness is currently being looked at.
We envisage that the Economic Regulator will equally address the concern of economic inequality that have risen as a result of the international deregulation of certain freight categories that are being transported to South Africa by international carriers.
Esteemed delegates,
It is worth noting that the international air freight market continues to be deregulated as far as South African airlines are concerned. And the current regulatory provisions regarding foreign cargo airlines have been retained and the deregulation of services by foreign operators to South Africa will be considered by government only if reciprocity exists.
National Airport Development
As such, the national planning and integration of airports into the broader transport network, in respect of modal integration as well as in the context of the total air transport system, need to be coordinated with the other spheres of government. Airport development will therefore be planned holistically in accordance
with a structured National Airports Development Plan, which will support national, provincial and local community objectives. This development will complement the airport system, and in some cases, even allow for competition within the system, to the benefit of the user.
Ladies and gentlemen,
You will agree that our track record as a country with impeccable credentials on aviation safety, particularly in respect of commercial aviation is something we must be proud of and sustain at all costs.
This includes extending a similar track record to general aviation. And, as we are a signatory to the Chicago Convention and a Council member of the International Civil Aviation Organisation (ICAO), we must continually do everything in our power to lead by example in ensuring and sustaining safety of our airspace.
Programme Director,
The Airports Company South Africa is a strategic national asset whose recovery is driven by its recovery strategy premised on its mandate to run airports, develop airports and grow its footprint, both in the country and elsewhere, with particular focus on the African continent.
We have ambitious plans of pursuing a Pan-African strategy as a key pillar of our global aviation strategy, which we believe will enhance South Africa’s competitiveness in the global market, because a prosperous Africa must be based on inclusive growth and sustainable development.
In giving expression to the Yamoussoukro Decision towards a Single Air Transport Market (SAATM) in Africa, we must pursue partnerships that will help us carve new opportunities for the development and growth of aviation in the continent. We must pursue these partnerships to help us in developing new hubs and gateways that connect our people to all regions of the African Continent and beyond.
The African Civil Aviation Commission (AFCAC) launched a program dubbed Pilot Implementation Project (PIP) in 2022, with the aim to accelerate the implementation of the Yamoussoukro Decision. This will lead to the full implementation of the Single
Air Transport Market (SAATM). The pilot project incorporates 18 African Union Member States with favourable environments to accelerate the SAATM. Accordingly, Cabo Verde, Côte d’Ivoire, Congo, Cameroun, Ethiopia, Ghana, Gabon, Kenya, Morocco, Mozambique, Namibia, Nigeria, Niger, Rwanda, Senegal, South Africa, Togo, and Zambia will be involved in the PIP programme.
We all know that Air transportation plays a pivotal role in enabling economic activity that enables growth through rapid movement of goods and people. Growth in the air transportation directly contributes to this growth through the creation of direct and indirect jobs in the industry and other auxiliary sectors, such as tourism and the services sectors. Expansion in air transportation creates market opportunities for local entrepreneurs by creating regional and global economic centres.
Safety is the most pervasive challenge facing the aviation industry in the continent. The frequency of accidents stems largely from inconsistency in the implementation and enforcement of internationally accepted safety standards and practices. Increasing the level of safety should be a key priority for the development of the African Aviation Industry.
To this end, the African authorities have endorsed an African Union backed plan aimed at addressing deficiencies related to
aviation safety and security and strengthening the regulatory framework. Accordingly, International Air Transport Association (IATA), jointly with the International Civil Aviation Organization (ICAO) and other organizations have committed to supporting the Africa Strategic Improvement Action Plan of the African Union. The plan encourages African governments foster regulatory oversight through the adoption of globally accepted safety and security standards.
The air transport industry faces various challenges including poor airport infrastructure, lack of physical and human resource, limited connectivity and lack of transit facilities. Although substantial progress has been made during the last decade, our continent still lagging compared to other regions in terms of “soft” and “hard” infrastructure.
Despite increased liberalization of the African aviation industry in line with the Yamoussoukro Decision, some of our counterparts in the continent are still reluctant to open their skies to each other but have no qualms extending this courtesy to countries beyond the continent through the Open Skies and Horizontal Agreements.
Ladies and gentlemen,
It is critical that African States must honour their collective undertaking to prioritize the development of aviation in our own continent through a collaborative effort of establishing a Single Air Transport Market in Africa, with the African Continental Free Trade Agreement (ACFtA) as a critical enabling instrument that must be used to fast-track the much-needed economic growth.
To address the challenges faced by the sector, we do require to forge meaningful partnerships that will serve to enhance regulation of aerospace management, consumer protection and safety of airlines.
Programme Director,
Lack of aviation experts and skills, high airport taxes and fees, the weak connectivity and restrictions on transit visas and facilities add to the menu of impediments that we can only address by working together.
Air travel is essential to our prosperity as it opens opportunities that did not exist before. Giving impetus to the growth and development of the African aviation industry is one of the most important drivers of regional integration on the continent.
Better connected African countries and regions through a viable air transport industry can be the catalyst to boost intra-African business, trade, tourism as well as cultural exchange. You will agree that developing the aviation industry also represents an invaluable opportunity to mitigate chronic transport problems faced by the sixteen (16) landlocked African countries.
Despite these challenges, I must say that we are making progress in building transport connectivity that unlocks the value- chain of the aviation sector as a critical enabler.
Our plans to establish an Aviation Academy will not only position South Africa as a skills development hub for the region but will also unlock other related opportunities.
Such opportunities include investing in aircraft maintenance, repair and overhaul, aerospace manufacturing capabilities and other airport operations equipment to enhance our competitiveness in the Southern Hemisphere.
Programme Director, ladies and gentlemen,
As I conclude, I have no doubt that the deliberations of this summit will enrich our plans to grow the domestic and African aviation sector in a manner that will enable us to become trailblazers in the recovery of the sector world-wide.
I wish you productive deliberations and am looking forward to the innovative solutions to our intractable challenges emerging out of this summit.
To you all I say…until we spread our wings, we will have no idea how far we can fly…let us be intentional and purpose to fly high for aviation economic growth and development, employment creation, and facilitate trade and tourism like never before.
I thank you.
