IMPORTANCE OF AVIATION SAFETY TO AIR TRANSPORT AND ECONOMIC DEVELOPMENT By Dr. Elijah Chingosho Secretary General 19 JULY 2012 Abuja, Nigeria
INTRODUCTION It is a great pleasure and honour for AFRAA to participate in this important African Ministerial Meeting on Aviation Safety in Africa It is great to be in the Federal Republic of Nigeria, a country of great people with numerous dynamic airlines and in this magnificent city of Abuja
OUTLINE OF PRESENTATION In this presentation, the following is covered: Tribute to the host. Why Aviation Safety is Critical for Africa s Economic Development Economic Benefits of Safe Air Transport Worldwide Economic Benefits of Safe Air Transport in Africa Key Safety Challenges Facing African Air Transport Conclusions
TRIBUTE TO THE HOST Tribute to our host, the Government and people of Nigeria for the warm welcome Nigeria is a huge country with enormous potential for development in all economic sectors particularly aviation The growing economy means more and more people can afford to use air transport
TRIBUTE TO THE HOST (contd) Tribute to the Hon Minister for Aviation of the Federal Republic of Nigeria for her wisdom in appointing a seasoned aviation professional, the Dr Harold Demuren, as the DG NCAA which he has over the past few years transformed into a world class and exemplary authority which now has FAA Category 1 status.
TRIBUTE TO THE HOST (contd) We salute the Hon Minister for posting Dr Bernard Aliu as the Nigeria representative at the ICAO Council as he is among the sharpest minds in civil aviation worldwide. AFRAA applauds the support of all African Governments of Dr Aliu for the Presidency of ICAO, not just because he is an African but because he is the best man for the job. Dr Aliu s contributions to the development of a safety culture worldwide and in Africa in particular are well known and appreciated in professional aviation circles.
TRIBUTE TO THE HOST (contd) We also salute the Government of Nigeria for the wonderful services that Ms Sosina Iyabo is carrying out as the Secretary General of AFCAC AFRAA applauds the Nigerian Government for acceding to the Cape Town Convention and Protocol to make it cheaper and easier for the country s airlines to modernize their fleets Nigeria is leading into terms of opening up the country s skies in keeping with the Yamoussoukro Decision to help strengthen African aviation
WHY AVIATION SAFETY IS CRITICAL FOR AFRICA S ECONOMIC DEVELOPMENT 24 hours a day the lives of paxs are dependent upon the implementation of safety regulations adopted to protect the public s interest Aviation safety saves lives in the air & ground In terms of economics, the importance of aviation safety is enormous With every air accident, a section of the public is hesitant to fly, resulting in a loss of revenue to airlines industry and business in general
ECONOMIC BENEFITS OF SAFE AIR TRANSPORT WORLDWIDE A study by Oxford Economics and ATAG reveals the vital role aviation plays at a global level: 35% of world trade by value is carried by air transport with about 48 million tonnes of freight in 2010 About 57 million jobs worldwide are supported by aviation Its global economic impact including direct, indirect, induced and catalytic impact on tourism is about $2.2 trillion
ECONOMIC BENEFITS OF SAFE AIR TRANSPORT WORLDWIDE (contd) A poor national safety record will seriously hinder further development due to lower demand and increased costs Therefore even a small decline in air transport and freight movement due to safety concerns would result in major negative economic impact Hence, aviation safety is of critical importance to every country and economy in the world
ECONOMIC BENEFITS OF AIR TRANSPORT IN AFRICA With the relatively poor surface transport systems and the huge costs of new transport infrastructure projects, aviation offers cost effective transportation Three kilometres of runway and some airport infrastructure connect the city to the rest of the world and the rest of the world to the city Studies by Oxford Economics and ATAG reveal that in Africa aviation directly employs over 250,000 people with more than 6.7 million jobs if we include indirect employment, induced employment from spending by aviation industry employees The report shows that $67.8 billion in GDP are supported by aviation
ECONOMIC BENEFITS OF AIR TRANSPORT IN AFRICA (contd) Foreign investment depends on ease of access and on an efficient transport system. Forecasts indicate that passenger numbers are expected to surge from 67.7 million in 2010 to over 150.3 million in 2030. Cargo volumes are projected to rise at a rate of 5.2% per annum Opportunities for huge tourism growth Full realisation of the economic and social benefits of aviation in Africa is being constrained by safety concerns
KEY SAFETY CHALLENGES FACING AFRICAN AIR TRANSPORT A poor safety record, largely attributable to some few countries with low standards and lax safety oversight, is the greatest challenge facing the air transport industry in Africa today The comparatively poor safety record has been used by the EU as a pretext to blacklist about a third of all African countries, affecting 130 airlines, with negative economic impact to the whole continent
Fatal Airline Accidents in Africa 2007 2011 Country Number of Fatal Accidents % of Total 1 DRC 14 37.8 2 Sudan 7 18.9 Rest of the Continent DRC 3 Kenya 3 8.1 4 Congo Brazzaville 2 5.4 Kenya Sudan 5 Rest of Continent 11 29.7 Congo Brazzaville Total 37 100
Fatal Airline Accidents in Africa in Past 5 Years The number of fatal accidents dropped from 52 in 2002-2006 to 37 in 2007-2011 reflecting the laudable efforts by various stakeholders The fatal accident rates are less than 13 % of worldwide rates in 2011, a major improvement from about 30% 5 years previously but still unacceptably high In the DRC the numbers are contrary to the general downward trend elsewhere Accidents in DRC increased from 29.2% of all fatal accidents in Africa to 37.8% or from 12 in 2002-2006 to 14 in 2007-2011.
Fatal Airline Accidents in Africa in Past 5 Years The DRC and Sudan account for more than 57 % of all accidents on the continent during the last 5 years In the case of Sudan, the economic sanctions on the country which include on supply of aircraft spare parts are also a major contributor to accidents The high accidents rates, mainly in these two countries tarnish the image of the whole continent and not just the countries concerned This reduces the number of people wishing to fly African airlines with the resultant negative economic impact on all African countries In Nigeria, following the establishment of a more autonomous CAA under Dr Demuren and some directives concerning the age of aircraft that can be imported into the country, accident rates fell sharply
THE EU BLACKLIST The EU Blacklist published in April 2012 has 284 airlines from 24 countries worldwide currently banned from flying into Europe Out of the 24 countries on the banned list, 17 or over 70% are in Africa Other Continents This means that about a third of all African countries are on the banned list Africa No African country has ever been removed from the list while the list continues to grow even though we have witnessed significant improvement of aviation safety on the continent
COUNTRIES WITH AIRLINES ON EU BANNED LIST (03 April 2012) Country Number of Airlines 1. Ghana 1 2. Honduras 1 3. Rwanda 1 4. Afghanistan 4 5. Angola 13 6. Benin 8 7. Republic of Congo 5 8. DRC 36 9. Djibouti 1 10. Equatorial Guinea 3 11. Indonesia 47 12. Kazakhstan 37 13. Kyrgyz Republic 16 14. Liberia 0 15. Gabon 7 16. Mauritania 1 17. Mozambique 13 18. Philippines 56 19. Sao Tome and Principe 10 20. Sierra Leone 7 21. Sudan 14 22. Surinam 1 23. Swaziland 1 24. Zambia 1 TOTAL 284
Impact of Banned List on African Airline Industry The EU practice of blacklisting is very damaging to the whole African aviation industry Creates tremendous economic and financial difficulties to the countries concerned while it makes no contribution to improving aviation safety With 130 airlines on the banned list, the perception is created among potential customers that all African airlines are unsafe This puts the world class African airlines at a competitive disadvantage compared to their European counterparts
Impact of Banned List on African Airline Industry (contd) Happening at a time when the intercontinental traffic between Africa and Europe is very much dominated by European carriers The unilateral nature of the decision to ban and lack of transparency, throws serious doubt as to its fairness and its impartiality If a destination or airport is unsafe, why is it safe for EU carriers to fly to that destination? The banned list is a very powerful economic weapon being deployed by the EU as a technical trade barrier for the benefit of EU carriers
CONCLUSIONS In terms of economics, the importance of aviation safety is enormous Africa, like the rest of the world, derives huge economic and social benefits from safe air transport system In order to enhance safety and ensure growth in air traffic, Africa will have to tackle several challenges, including attainment of international safety standards Need to ensure that the unjust EU blacklist, which is an albatross around the neck of African aviation, is removed We urge governments in the economic plans to include the expansion and modernisation of the air transport capacity to ensure growth of their economies.
Thank You Very Much Asante Sana Merci Beaucoup Gracias Tanto Muito Obrigado جزيال شكرا T h a n k Y o u!