AFRICAN UNION UNION AFRICAINE UNIO AFRICANA P. O. Box 3243, Addis Ababa, ETHIOPIA Tel.

: (251-1) 525849 Fax: (251-1) 525855

MEETING OF AFRICAN MINISTERS RESPONSIBLE FOR AIR TRANSPORT FIRST ORDINARY SESSION 16 19 May 2005 Sun City, South Africa AU/AT/Exp/Rpt (I)

REPORT OF THE MEETING OF EXPERTS ON AIR TRANSPORT

REPORT OF THE MEETING OF EXPERTS ON AIR TRANSPORT I. INTRODUCTION

1. The preparatory session of the meeting of African Ministers responsible for air transport took place at the Sun City Resort Centre in South Africa from 16 to 17 May 2005. The meeting was taking place for the first time under the au spices of the African Union in collaboration with the Government of South Africa , the host country. The major objective of the meeting was to review the overal l situation of air transport in Africa and recommended specific measures for acc elerating the implementation of the Yamoussoukro Decision as well as adopt a Com mon African Position in relation to the European Union air transport policy with regard to external parties. The meeting was also expected to consider and make recommendations and on matters of air transport safety and on the measures to m ake the African Civil Aviation Commission (AFCAC) autonomous. II. PARTICIPANTS

2. The following countries were present: Angola, Algeria, Botswana, Burundi , Cameroon, Chad, Cote dIvoire, Djibouti, DRC, Egypt, Ethiopia, Gabon, Ghana, Ken ya, Lesotho, Libya, Madagascar, Malawi, Mozambique, Namibia, Nigeria, Niger, Sou th Africa, Senegal, Swaziland, Sudan, Tanzania, Uganda, Zambia, Zimbabwe. 3. Representatives of Regional Economic Communities and Organizations were also in attendance: AASA, AFCAC, AFRAA, COMESA, ECA, FDA, IATA, ICAO, NEPAD, SAD C, UEMOA. III. OPENING CEREMONY

Speech of a Member of the Executive Council (MEC), Transport and Roads, North We st Province, South Africa 4. The Member of the Executive Council for the North Western Province of So uth Africa noted that the objective of the meeting was to focus attention on the role of air transport and civil aviation in the development of the economy. He noted that the conference was taking place at a time when favourable and enablin g economic conditions were prevalent and that active partnerships and integratio n were core elements in the strategy to achieve shared economic growth. He expre ssed a desire for the air transportation and civil aviation industry to be the c ornerstone of shared economic development, with the Yamoussoukro Decision as the key strategic driver of African development. 5. However, in spite of the Yamoussoukro Decision, the air transport indust ry is still faced with a number of challenges, including the perception by some African countries that it has a negative impact on their economies, the high cos t of air travel and the fact that it is sometimes quicker to travel between Afri can cities via Europe. The situation accordingly requires the development of str ategies for co-operation among African countries and the harmonisation of rules and procedures. He also observed that air transport has the potential to enhance prospects for economic growth and poverty alleviation core principles of NEPAD and the cornerstone of the AU. 6. The industry, he asserted, must, therefore, be managed in a manner which promotes Africas socio-economic objectives. He underlined the need for tangible solutions to the difficulties being experienced by the industry such as the libe ralisation of the skies, security and safety and reducing the cost of air travel . He concluded by indicating that the successful integration of the aviation ind ustry in Africa will result in more access to economic opportunities. Statement by the Representative of AFRAA 7. After expressing his gratitude to the African Union and the Government o f the Republic of South Africa for inviting AFRAA on the one hand and for the op portunity given him to address the meeting on the other, Mr. Christian Folly-Ko ssi, the representative of AFRAA, pointed out that this conference was a moment of great hope for Africa in meeting the numerous expectations of the various pla yers in the air transport sector. 8. To this end, he said, expectations would only be met if participants avo ided making empty promises, if the whole truth was spoken on the very evident an d important differences that existed between countries equipped with large airli nes and those with small airlines in the implementation of the Yamoussoukro Deci sion to the extent that all traffic rights were given to airlines from outside t he continent, sometimes excessively. 9. Continuing, he observed that some impatiently awaited the speedy impleme ntation of the Decision while others vaguely hoped for compensation perhaps in t he form of investment in their existing airlines or in their airlines in the mak ing. 10. Concluding, he expressed the hope that participants would speak frankly about the impasse and propose solutions that every stakeholder would implement s o that Africa could finally make progress in the air transport sector. Speech of the President of the African Civil Aviation Commission (AFCAC) 11. Mr. Tshepo Peege, President of AFCAC began his address by raising a numb er of questions regarding the non-implementation of the Yamoussoukro Decision. H

e recalled the basic tenet that the Decision has precedence over any multilatera l or bilateral agreements in air services between state parties and called on pa rticipants to ask critically what has gone amiss that the reality is not so. He went on to restate the core articles concerning traffic rights, tariffs, capacit y, frequency, designation, authorisation, competition rules, settlement of dispu tes and the Monitoring Body. 12. He also referred to the institutional framework for the implementation o f the Decision including the Sub-Committee on Air Transport established under Ar ticle 25 of the Abuja Treaty and the Monitoring Body. He highlighted the emphasi s placed on the implementation of the Yamoussoukro Decision by AFCAC and in the NEPAD Short-Term Action Plan (STAP) and elaborated on the critical importance of the Decision in enhancing the interconnectivity of African destinations, promot ing tourism and, hence, contributing to poverty eradication in Africa. In this r egard, he hailed countries which have taken the bold move of fully liberalising air transport services between them. 13. The President then addressed the issues of safety and security, which ha ve critical influence on the performance of the sector. He enumerated efforts un dertaken under AFCAC and the International Civil Aviation Organisation (ICAO) wi th regard to maintenance of safety standards as well as taking measures to count er the threat posed by man-portable air defence systems (MANPADS), other surface -to-air missile systems, light weapons and rocket propelled grenades. On the sam e lines, he spoke on the need to tackle aircraft noise and engine emissions, whi ch contribute to environmental degradation. He ended his address by thanking the Organisers of the meeting including the African Union and the Government of Sou th Africa for the opportunity to address critical issues of the sector. Statement by the Representative of UNECA 14. The representative of the ECA, Mr. Joseph Atta-Mensah, begun by recallin g ECAs involvement in convening the first African Ministers responsible for Air T ransport in November 1964. It was also noted that ECA played vital roles in tran sport policy-initiatives such as the United Nations Transport and Communications Decade for Africa, the Mbabane Declaration on the Freedoms of the Air, the Yamo ussoukro Declaration of 1988 as well as the Yamoussoukro Decision of 1999. 15. The ECA representative noted the importance of the meeting. First, throu gh such forums, the Aviation community in Africa could share and disseminate vit al information necessary to strengthen and improve the air industry. Second, suc h meetings help in keeping the Yamoussoukro Decision alive. Third, by coming tog ether, policymakers are kept well informed on the progress, achievements and cha llenges of implementation of air transport policies on the continent. Fourth, th rough the attendance to these meetings member states would take the needed measu res to ameliorate and improve air transportation in their respective countries. Speech of the Director General of the Department of Transport of the Republic of South Africa 16. The Director-General, Ms. Mpumi Mpofu, expressed gratitude on behalf of the Government of South Africa at being honoured to host the important African U nion Ministerial meeting in air transport. She underlined the importance placed by the AU on air transport as a key mode for promoting socio-economic developmen t and integration in the continent and the world at large. She then highlighted a number of challenges facing civil aviation in Africa which need to be resolved . These were enumerated as issues related to market access, safety, security, en vironmental protection and the plight of the African Civil Aviation Commission ( AFCAC).

17. She gave a brief background to the efforts to liberalise air transport s ervices in the world. This began with the Chicago conference of 1944 where the f ive freedoms of the air were defined to the recent open skies regime adopted by the US and the liberalisation of intra-Europe air services under the EU Commissi on. In this account, she underlined the element of incremental phases adopted to allow countries to gradually adjust their policies and practices to minimise th e potential negative impact of liberalisation. 18. The Director-General went on to described Africas own yet-to-succeed libe ralisation endeavour in the form of the Yamoussoukro Decision whose failure she partly attributed to absence of competition rules and dispute resolution mechani sms as also observed by the Monitoring Body at its 4th meeting in March 2005. Sh e also pointed to the expected increase in the volume of air transport activitie s with successful liberalisation which would impact on the currently weak capaci ty of the air transport safety and security oversight systems. 19. To that end, she underscored the need to take timely remedial action to deal with safety, security as well as environmental threats by, among others, im plementing measures adopted under ICAO. Finally, she challenged the meeting to c ome up with solutions to reinforce the autonomy of AFCAC as a key African organi sation in the efforts to improve the state of the air transport sector in Africa . Speech of Dr. Bernard Zoba, Commissioner in-charge of Infrastructure and Energy of the African Union 20. In his opening address on the occasion of the Experts Meeting, the Commis sioner for Infrastructure and Energy of the African Union first expressed his si ncere thanks and gratitude to the Government of the Republic of South Africa for the warm and fraternal hospitality extended to all the delegations and for the invaluable support provided by the South African authorities in the organization of the meeting. 21. Words of gratitude and thanks were also addressed to the partner organiz ations of the African Union for their contribution in the technical preparation of this meeting particularly, AFCAC, AFRAA, ECA and RECs. 22. The Commissioner then recalled the purpose of the meeting which was to e xamine ways and means and define operational actions likely to contribute to the development of an efficient and affordable air transport in Africa. 23. To this end, he highlighted the concerns of the African Union regarding the air transport sector, the major challenges to be addressed and the impasse i n the implementation of the Yamoussoukro Decision aimed at formulating and conso lidating a truly integrated policy of air transport operations in Africa, thereb y making possible, at the continental level, to ensure improved services, increa sed frequency and flights coordination, improved profitability of airlines on in tra-African routes, while reducing the time and travel costs. 24. Concluding, the Commissioner called on the Experts to examine, improve a nd enrich all the draft documents tabled before them with a view to coming up wi th high quality proposals and recommendations to be submitted to the Conference of Ministers in-charge of air transport for adoption, in consonance with the the me of the meeting: For an Efficient and Affordable System of Air Transport in Afr ica. IV. 25. ELECTION OF THE BUREAU The meeting elected the following Bureau:

Chairman 1st Vice Chairman 2nd Vice Chairman 3rd Vice Chairman Rapporteur V. 26. I. II. 1. 2. 3. 4. ADOPTION OF THE AGENDA

: : Algeria : :

South Africa Nigeria Burundi Uganda

The following agenda was adopted. OPENING CEREMONY WORKING SESSION Election of the Bureau Adoption of the Agenda and Work Programme Overview of the state of Air Transport in Africa: Air transport policy issues: AU/AT/2 (I)

Report of the 4th Meeting of the Monitoring Body of the Yamoussoukro Decision AU/AT/3a (I) Synoptic Analysis of the Yamoussoukro Decision on the implementation of the Yamoussourkro Declaration on the Liberalisation of access of air transport markets in Africa Competition Rules Experience of Eastern and Southern Africa

AU/AT/3b (I) AU/AT/3c (I)

Common external air transport policy: Common African Position Relating to EU Community Clause and Negotiating Mandate 5. Air safety and security: Report of the Meeting of the Air Safety Enhancement Team (ASET)

AU/AT/3d (I)

AU/AT/4 (I)

6. Institutional Matters: Autonomy of the African Civil Aviation Commission (AFCAC) 7. 8. III. VI. 27. rs: The way forward / Plan of Action Any Other Business CLOSING ORGANIZATION OF WORK After an exchange of views the meeting adopted the following working hou

Morning : Afternoon

09:00 :

14:00

13:00hrs 18:30hrs

Agenda Item 3: Overview of the State of Air Transport in Africa Doc. AU/AT/2 (I) 28. Under this item, two (2) papers were presented. The first entitled Overv iew of the state of air transport in Africa was done by a Consultant with the Afr ican Union and the second on the State of African Airline Industry was delivered b y the Secretary General of the African Airlines Association (AFRAA). (a) Presentation of the African Union Consultant

The State of Air Transport in Africa 29. The situation differs significantly from one region to another.

State of Passenger Traffic 30. Domestic traffic of African countries is generally marginal. Regarding regional traffic, between some sub-regions, it is some times to quicker to trans it through Europe. Today, nearly 75% of the international African traffic is ens ured by major western airlines. State of Air Transport Industry in Africa 31. The characteristics of African Airlines: restricted nature of the market s, high operating costs, under-capitalization, Governments interference, lack of staff training, lack of professionalism on the part of leaders, low level of int er-airline cooperation and inaccessibility to major world alliances. 32. Airport Industry: problems related to management, financing, safety and security. 33. Tourism Industry: reticence of investors depending on the regions. Buil ding industry is non-existent. Few maintenance centres exist. Ground handling is very expensive (few economies of scale possible). Other Stakeholders in Air Transport 34. Civil Aviation Authorities: Security/safety level often not consistent w ith ICAO standards. 35. Air Traffic Management Bodies: Greater regional cooperation should make it possible to obtain important savings. How to improve the Air Transport Situation? The Yamoussoukro Decision 36. . The effects of the Yamoussoukro Decision varied according to the regions

Development of Synergy and Integration of Airlines 37. The costs of operating airlines in Africa are higher than in the rest of the world. Partnerships exist but will not be sufficient.

A Community Airline 38. To resolve the problem of profitability, the solution would be to establ ish a regional or sub-regional airline with the traffic rights of several Africa n States in whose interest it would be to establish such an airline. Conditions conducive to investment in Africa Legal Framework 39. Guarantee of respect of property, compliance with the rules of competiti on, security and stability of countries will motivate investors to show interest in the continent. Access to External Financial Resources 40. The absence of infrastructure, especially air transport infrastructure, and poor communication facilities explain the lack of enthusiasm on the part of investors. (b) Presentation of the African Airlines Association (AFRAA) on the State of the African Airline Industry 41. The Secretary-General of AFRAA, Mr. C. FOLLY-KOSSI, began his presentati on by stating the objective of the meeting as being to address the critical issu es of the airline industry. The presentation reviewed the current route network in Africa and made the following observations and strategic recommendations for the industry. 42. In West and Central Africa, apart from Air Senegal International, no oth er long haul carrier of reference is operating in West Africa. Ghana and Nigeri a had announced the launching of new airlines which have not yet started operati ng. Airlines in North Africa are competitive and have taken all the necessary st eps to equally share traffic with their European competitors. Most of them have entered into code share agreements with the European carriers. Regarding East a nd Southern Africa, South African Airways, Ethiopian Airlines, Kenya Airways, Ca meroon Airlines, Air Gabon and Air Mauritius have proved to be leading carriers. 43. He then spoke of global liberalization as a major challenge facing Afric an air transport with far-reaching consequences. In the coming years, he observ ed, the continent is likely to be thoroughly invaded by foreign mega-carriers. T his dominance of European carriers is likely to further increase as a result of the implementation of the single airspace concept within the European Union, and the franchising policy which is being actively developed by European carriers, the buying into African airlines by European carriers. 44. The Secretary-General underscored the need for a viable and vibrant airl ine industry not only in a few regions but on the whole continent on both intern ational routes and intra-African networks as well. At this point he highlighted the difficulties of air travel within Africa citing, in particular, high cost an d lengthy delays. He then made some strategic recommendations as follows hereund er: The Yamoussoukro Decision must be fully and entirely implemented by all African States; Major airlines should form regional alliance groupings in which market niches wo uld be reserved for small carriers; Priority must be given to African carriers to be strategic partners in privatiza

tion programs; State owned airlines must be commercialized or privatized and major regional car riers should open up to cross-border investments and remove national references from their tails; Cross-border investments by African nationals must be facilitated; African governments must provide the necessary environment facilitating manageme nt stability; There is a need to ban the importation of old aircraft mostly used in cargo, cha rter and commuter services as they are the cause for most accidents in the conti nent; The Ministerial conference should adopt a set of negotiating principles and mech anism under the coordination of the African Union; Countries that have no airlines should allow other African carriers to freely op erate on their traffic rights; Government authorities should not lose sight of the duty to support their nation al carriers; Reciprocity and balance rules should prevail in Africas relations with third part ies; Countries and international organizations should refrain raising revenues by inc reasing taxes on air travelers; Governments are urged to expedite ratification of air transport international co nventions, particularly the Cape Town one. Discussions on the presentations made by AU Consultant and AFRAA 45. Some participants felt that while the lack of means was an obstacle to t he full implementation of the Yamoussoukro Decision, there was also lack of poli tical will honesty about it. The other reasons which was seen to account for the failure to implement the Decision include poor infrastructure and the absence o f a comprehensive plan of action. 46. In order to progress the agenda of Yamoussoukro, some participants were of the view that it was important for African countries to: Have a common negotiating position; Establish a framework for co-operation; and Facilitate the entry of other African airlines into local markets.

47. UEMOA Representative informed the meeting that UEMOA had since June 2002 adopted a civil air transport economic regulation relating among other things t o: access to market, access to the air carrier profession, stop over assistance, responsibility of the carrier in the event of accident, time slots and protecti on of the user. He also intimated that UEMOA had adopted a regulation text whic h grants financial and managerial autonomy to civil aviation authorities. 48. ; Other pertinent observations which were made included the following: The AU would be a suitable vehicle for coordinating initiatives for co-operation There was a need to focus on capacity-building to enhance ability to implement t

he Decision. In order to remain competitive, there was a need to make use of technological ad vances in the industry, such as e-ticketing; The Consultant has not provided statistical data of the other regions of the con tinent (apart from West and North Africa) whereas such data exist, neither are t he data provided on the other regions comment; Some phrases need to be reformulated and some statements should be reviewed like absence of high quality maintenance centers, whereas such centers exist in coun tries like Algeria, Ethiopia and Nigeria; The report of the consultant has also failed to mention the commendable efforts made by some countries in terms of search of certification of airports or infras tructural development. 49. Following the above observations, the consultant provided the following answers: The document is only a draft and not a comprehensive study on air transp ort in Africa. The purpose of the document was to open the debate on Air Transp ort in Africa; It highlights the regions where the problems are more obvious: in genera l terms, it makes mention of disparities according to regions, with North, South and East Africa enjoying a more prosperous situation than West and Central Afri ca; Lastly, the examples are quoted simply as an illustration and do not in any way constitute an exhaustive list. Agenda Item 4: Air transport policy issues: (a) Report of the 4th Meeting of the Monitoring Body of the Yamoussoukro Dec ision Doc. AU/AT/3a (I) 50. The report was presented by Mr. A. Baba-Moussa, Director of Infrastructu re and Energy of the African Union, who is the Chairman of the Monitoring Body. In his presentation, the Chairman of the Monitoring Body highlighted the main is sues considered by the meeting with particular focus placed on the slow implemen tation of the Decision. He informed the meeting that in the course of the fourth meeting of the Monitoring Body, ECA as Secretary to the Monitoring Body present ed the implementation report of the Decision. 51. As well, other presentations were made by AFCAC, AFRAA, COMESA and the N EPAD Unit of the ADB outlining the progress attained so far and highlighting the challenges faced and activities undertaken to resolve problems and accelerate i mplementation. It was noted that there were concrete effort being undertaken in West and Central African regions through joint actions of ECOWAS and CEMAC as we ll as in Eastern and Southern Africa through ECOWAS in collaboration with SADC a nd the EAC. 52. Problems impeding the implementation of the Decision were enumerated as including: Lack of active tools and funds for monitoring the implementation of the Decision ; No clear and independent responsibilities assigned to the RECs; Monitoring mechanism established without any clearly defined powers of prescribi ng rules;

Negative implications of the EU position/policy on Open Aviation Area. 53. Finally, the Monitoring Body agreed on the following specific observatio ns and recommendations as the Way Forward for the implementation of the Decision: Monitoring Body Some African States are very cautious because of the negative impact of the libe ralization on their small airlines; There is a lack of communication on the benefits deriving from the liberalizatio n of Air Transport in Africa in relation to African integration, the Tourism ind ustry, Air Travellers, Airports, Cargo forwarders; There is a weak attendance of the Monitoring Body meetings by the RECS; The implementation of the activities related to the Yamoussoukro Decision is oft en delayed; The Monitoring Body does not meet often enough to follow closely and be able to monitor the implementation of the Yamoussoukro Decision; The implementation of the Yamoussoukro Decision is number one of the ten priorit y projects approved by the Heads of State Implementation Committee of NEPAD, amo ng more that 120 projects submitted; It appears clearly that in order to be able to properly evaluate and monitor the implementation of the Yamoussoukro Decision, the Monitoring Body needs an updat e and complete range of information. Recommendations: 1. The Monitoring Body should have the capacity to fulfil its obligations.

2. There should be an improvement in the preparation and the planning of th e meetings with adequate time notice, and possible financial. 3. The role and attribution of each member of the Monitoring Body should be revisited in order to improve its efficiency, RECs shall become full members, S ome other stakeholders should be included: ADB, NEPAD, Regional Development Bank s, Airports, Tourism structures. 4. The funding of the activities of the Monitoring Body should be improved.

5. The Secretary should ensure that ADB and NEPAD Secretariat are fully app rised of the activities undertaken within the framework of the Yamoussoukro Deci sion. 6. The RECs should make available to the Secretary all the information on a regular basis. The Secretary should make available the information to all the s takeholders. Resource mobilization for the activities towards the implementation of the Decis ion 54. There is a need of funding for all the activities undertaken by the RECs and the Monitoring Body. Recommendations:

1. AU as the President of the Monitoring Body is invited to find ways and m eans of mobilizing resources from funding agencies (World Bank, ADB, EU and othe r development partner) for funding the activities of the Monitoring Body. 2. The ADB/NEPAD Unit is invited among other projects, to consider: Participating in the financing of the joint ECOWAS/CEMAC Project; Participating in the financing of the joint COMESA/EAC/SADC activities

Withdrawal of Mauritius 55. In ubmitted a on because the basis compliance with Article 12.3 of the Decision, in 2004 Mauritius had s letter informing the AU of their decision to withdraw from the Decisi it was considered inappropriate, for the time being, to liberalize on of the Yamoussoukro Decision.

Recommendations 56. The AU, as the Depository of the Yamoussoukro Decision was requested to: confirm to all the States parties the withdrawal of Mauritius.

take any necessary action to bring Mauritius to reconsider its position. Harmonized rules for liberalization of air transport 57. Lack of harmonized competition rules was hindering full implementation o f the Decision. Recommendation 58. The AU in collaboration with AFCAC and AFRAA should coordinate the regul ation texts prepared by the RECs, particularly the competition rules. Dispute resolution Mechanism 59. The meeting was informed that the Secretary has received a report from E gypt on its operational difficulties with Nigeria. The report has since been sen t to the AU and also circulated to AFCAC and AFRAA for their analysis and advice . The ECOWAS/CEMAC Yamoussoukro Decision Implementation project secretariat, bas ed in Abuja, had been asked to contact the Nigerian civil aviation authority on the matter. Recommendation 60. The President should contact the Monitoring Body to urge the Nigerian Au thorities to implement the Yamoussoukro Decision in respect to Egypt within the timeframe not exceed three months from the date of adoption of this report. Executive Agency 61. It was noted that the Decision calls for the creation of an Executive Ag ency that would have enough powers to formulate and enforce appropriate rules an d regulations that would ensure a competitive environment as well as supervise a nd manage Africas air transport policy. However, the meeting was informed that th e Agency has still not been formed despite that the Decision suggests it be form ed immediately. The Monitoring Body was requested to carry out the functions of the Agency until it is established.

Recommendations 1. The Monitoring Body is asked to assume the responsibilities of the Agenc y until its establishment. 2. The President should elaborate the mandate and the powers of the Executi ve Agency, prior to considering any delegation to an interim structure till the effective establishment of the Agency.

Relation with Third parties 62. The meeting expressed its concerns with regard to the implications on th e African carriers of the new European Union external air transport policy on on e side and on the US Open Skies Policy on the other side Recommendations 1. In this regard, AFCAC and AFRAA are requested to prepare a common Africa n position to be submitted to the AU. Those documents should be circulated to th e members of the Monitoring Body for consideration. 2. The Meeting took urged the AFCAC members States to refrain from undertak ing any revision of the current arrangements with EU Member States. However, pe nding the common position, guidelines will be prepared to enable the group of St ates which have already initiated the process to pursue it. Safety and security 63. The meeting took note of the report of the African Safety Summit organiz ed by ASET in Nairobi. Safety being a prerequisite to air transport liberalizati on, this report shall be submitted to the forthcoming Meting of African Minister s responsible for Civil Aviation (May 2005). Recommendation 64. The meeting recognized the need for a timely implementation of COSCAP Pr ojects in all the RECs. Agenda Item 4 (b) Synoptic Analysis of the Yamoussoukro Decision on the implementation of the Yamoussourkro Declaration on the Liberalisation of access of air transport markets in Africa Doc. AU/AT/3b (I) The Yamoussoukro Decision creates a single space in Africa, with one of its most innovative provisions being the principle of free access of (eligible) carriers to intra-African links 65. The Yamoussoukro Decision which regulates commercial air transport activ ity in a single African space aims at creating conditions for the emergence of a viable and quality African air transport that meets the integration imperatives of the continent, with liberalization as its sole ultimate objective. Its init iators should constantly bear in mind the fact that the goal sought is to endow the continent with an effective air transport that provides international standa rd service (quality services, tariffs, safety and security, regularity etc..). Indeed, the Yamoussoukro Declaration was intended to secure the integration of a

irlines and the establishment of regional bodies. It seems that its implementat ion comes up against a few hurdles. These hurdles could be removed by implement ing the following points: redefinition of the conditions of eligibility of airlines;

only eligible airlines should be at liberty to fix their community relat ion tariffs; redefinition of the powers of the Monitoring Body, particularly as regar ds coordination with the RECs; clarification of the role of the AU;

review of the composition of the Monitoring Body so as to give genuine p owers to the key players namely the RECs, AFRAA and AFCAC; nks; taking on board such institutions as ADB and the Regional Development Ba

providing the Monitoring Body with adequate financial resources to enabl e it to fully play its role; wers; definition of the role and powers of the Executing Agency, and its field of operation; definition of clear rules of competition; determining the organ that should be in-charge of arbitration and its po

adopting the most effective regional approach and ensuring permanent coo rdination of such regional approaches; taking on board, at the regional level, all air transport stakeholders ( airports, service companies, tourism promotion boards, travel agencies etc.). Discussion 66. After the presentations on the above, the participants noted that the im plementation of the Yamoussoukro Decision has so far lagged far behind the targe ts envisaged and that the Monitoring Body established pursuant to the Decision s hould be strengthened. In addition, the absence of a strategy for implementation meant that it was now necessary to draw a plan of action. The plan of action sh ould be a phased one, drawing on successful models, such as those utilized by IC AO members. 67. The first phase of the plan of action would be focused on the harmonizat ion of standards and licensing regulations as well as capacity-building. The tar get date for this phase could, tentatively, be the end of 2006. The second phase of the plan of action would be dedicated to ensuring compliance with ICAO stand ards, while the last phase would focus on co-operation at the inter-country leve l. This would involve, among other things, the relaxation of customs tariffs, th e integration of principal places of business and unlimited frequencies. 68. One delegation suggested the establishment of an executive body of five or six members to oversee the implementation of the Decision and that this shoul d be supported by a funding policy, such as the collection of contributions from signatories, to enable the plan of action to work. Other participants expressed the view that any plan of action agreed upon should recognize that not all coun

tries have the capacity to implement Yamoussoukro and that, therefore, it was ne cessary to consider grouping them in accordance with their respective capacities . Others also noted that countries experiencing conflict are not in a position t o implement the Decision as conflict, naturally, has a negative impact on the ai r transport industry. The view was also expressed that the plan of action should not slow the progress of those who have already begun to implement the Decision . 69. During the discussions, the legality of drawing a plan of action was deb ated. It was felt by some participants that a plan of action may amount to the r evision of a decision of the Assembly and that it was not competent to do so. In response, it was indicated by some delegations that as the decision is now bind ing on signatory states, it would be possible to clarify issues pertaining to it s implementation but not to revise it at the level of the meeting. The meeting a lso discussed the apparent parallel between the proposed plan of action and the mandate of the Monitoring Body established in terms of the Yamoussoukro Decision . 70. Other views expressed by the participants included the following:

It was important to be realistic about issues such as financial constraints and political commitment. The absence of political will could also be inferred from the failure to promulgate the appropriate legislation for the implementation of the Yamoussoukro Decision. On the other hand, the alternative view conveyed was that the obstacles to implementation related rather more to the absence of an ag reed methodology and the spectre of aggressive competition from international ca rriers; The fears that small carriers would be unable to compete if the Decision was im plemented should be dealt with. The participants were of opposing opinions in thi s regard, with some stating that small carriers should receive support in the fo rm of funding and the establishment of a fair system of competition rules and di spute resolution. Others indicated that competition should be allowed to take it s course and that it there were bound to be casualties in any restructuring exer cise; A holistic approach to implementation should be adopted, encompassing solutions to funding, such as the establishment of an African Investment Guarantee Fund to address infrastructure, as well as disparities in financial capacity. 71. The meeting finally resolved to establish a task force comprising the bu reau, the representative from the Government of Ethiopia, the representative fro m ECA and representatives from the RECs. The AU was to act as co-ordinator. The mandate of the task force would be to: Draft resolution detailing the plan of action on the basis of phase by phase app roach as proposed by South Africa; highlight the challenges faced by countries in implementing the Yamoussoukro Dec ision and propose solutions aimed at meeting those challenges; and address the institutional arrangements for implementing the Decision, including capacity-building. Agenda Item 4 (c) Competition Rules: Experience of Eastern and Southern Africa Doc. AU/AT/3c (I) Presentation of the Experience of Eastern and Southern Africa in the Development and Implementation of Competition Regulations

72. The meeting received a presentation on the COMESA, EAC and SADC Competit ion Regulations. The meeting noted that these regulations were established to fa st track the implementation of the Yamoussoukro Decision. 73. The meeting noted that the Regulations were prepared through a consultat ive process involving various stakeholders in the civil aviation industry. The m eeting further noted that due to the need to apply common regulations for the en tire ESA region the regional RECs namely COMESA, EAC and SADC agreed to combine their initiatives to prepare the regulations. The Regulations cover the various issues on competition dealing with Unfair practices, abuse of dominant position discrimination in legislation, subsidies and exemptions. 74. On implementation of the regulations, the regulations provide for a comp laints mechanism investigations and procedural Fairness, penalties and also esta blishes a Joint Competition Monitoring Authority. The meeting also noted that si gnificant changes had taken place in terms of service frequencies among city pai rs and the level of airfare where the frequencies between city pairs had increas ed and many city pairs for which services were not provided have been linked. 75. The meeting noted the following as the main challenges for implementing the Yamoussoukro Decision: Adoption and implementation of competition regulation s by member sates; proliferation of open skies agreements entered to by states e specially with the United States, Rulemaking Mechanisms; and funding of the Join t Monitoring Unit. The meeting further noted the importance of sharing and utili zing experience gained by the various regional economic communities in Africa an d also the systems in place in other economic blocks such as the European Union and elsewhere. Recommendations 76. In order to make rapid progress in establishment of a uniform continenta l framework for managing the economic regulation of the civil aviation sector, i t is necessary to coordinate and develop the following instruments: Harmonised Air Transport Competition Regulations; Uniform Implementation Procedures; Common Approach in dealing with other groupings such as EU or large countries in entering agreements or other arrangements in the air tran sport sector; Cooperation in policy development and rulemaking in order to continue to have ha rmonized policies and unified body of laws to govern the sector; Funding of the Joint Monitoring Unit Discussion 77. The UEMOA Representative informed the meeting of the adoption of legisla tion on competition within UEMOA. He also intimated that a memorandum of underst anding between the West African and Central African States signed in 1999 had be en updated to pave the way for the implementation of the Yamoussoukro Decision. This legislation serves as basis for the harmonization of the legislations of th e group agreement of Banjul and CEMAC.

Agenda Item 4 (d) - Common External Air Transport Policy:

Common African Position Relating to EU Community Clause and Negotiating Mandat e Doc. AU/AT/3d (I) Presentation of the Draft Common African Position Relating To the European Union Community Clause And Negotiating Mandate 78. The substantive elements of the above document which were brought to the attention of the delegates relate to the implementation and negotiation structu re as proposed hereunder: 1. An African State may enter into negotiation with an EU Member State conc erning a new air service agreement or modification of an existing air service ag reement, its annexes or any other bilateral arrangement, the subject matter of w hich falls within the common position provided that: The conditions and requirement contained in the common position is included in s uch negotiations, and The notification procedure contained in the common position is complied with.

2. Where appropriate the representatives of the RECs may be invited to part icipate as observers in any such negotiation. 3. The RECs shall have the authority to ensure adherence to the conditions and guidelines of the common position by their Member States. They shall ensure uniformity and consistency in the implementation of the common position at the r egional level. The RECs shall cooperate and coordinate with the AU and other RE Cs in order to achieve harmonized and uniform application of the common position . 4. The AU shall be responsible for the continent-wide adherence and impleme ntation of the common position. It shall ensure uniformity and consistency in th e adherence of the common position within the RECs and the Member States. 5. In order to assist and advise the AU in area of air transport relations with third countries the AU shall establish a Committee of Experts which shall c onsist of experts from AFCAC, AFRAA, the RECs. The Committee of experts shall ho ld exploratory discussions with EU and where necessary an individual EU Member S tate and advise the AU on the outcome of such discussions and its recommendation s on appropriate action. The AU shall establish the duties, responsibilities, pr ocedures and funding for the working of the Committee. 6. Where an African State intends to enter a BASA with the EU and or an ind ividual EU member State, it shall notify the appropriate RECs, AFCAC/ AU of its intentions in writing. It shall provide a copy of the ASAs immediately following the completion of negotiation and the final document after ratification of the agreement by the respective countries. Guidelines for Coordination and Cooperation 79. Cooperation and coordination among the three levels; the States, the REC s and AU are essential for the implementation of the common position and achieve ment of its objectives. To this end a detailed guideline setting forth the proce dures and mechanism for such cooperation shall be established. Legal Form and Authority of the Common position 80. The common position shall be a legal instrument which shall be binding o n all African States. In this regard it is proposed that the common position be

in the form of a Decision which shall be adopted and come into force in accordan ce with the Abuja Treaty, as was the case in the Yamoussoukro Decision. This req uires the preparation of a legal instrument which will be adopted by the African Ministers responsible for Civil Aviation and signed by the Member States of the African Economic Community (AEC). It shall come into force in accordance with t he provisions of the Abuja Treaty. Immediate Actions required 81. It is noted that certain African States may have commenced or plan to ne gotiate with EU or EU Member States relating to matters covered herein. The AU s hall write to all States and request them to suspend negotiation or not to enter into a final agreement prior to the adoption of the common African position. Review of The Decision 82. This Decision shall be reviewed in line with changing trends in air tran sportation. Discussion 83. Delegates were concerned about adopting a Common position at this point in time due to a number issues including the following: lack of implementation of the Yamoussoukro Decision which has a bearing on the adoption of a common position to external parties; the need for some countries to undertake extensive internal consultation particularly regarding the implications on their tourism industries ;

The need for clear guidance for some countries concerning the bilateral service agreements they have already entered without due consideration to the pr ovision of the draft common position; Some RECs have been approached by the EU Commission to explore the possi bility of block-to-block negotiations. 84. Despite the expressed concerns, the meeting agreed that it was necessary in the end to elaborate and adopt a Common External Air Transport Policy. Howev er, it was agreed that further work and consultations are needed to conclude the undertaking. It was finally recommended to carry out a two phased plan of actio n on the activating: Appoint a working group to draft Interim Guidelines;

Facilitate the elaboration and adoption of a Common External Air Transpo rt Policy; In phase one, it was agreed that the Working Group would be constituted having on regional representation (RECs) and will include AFCAC and AFRAA under the coordination of the African Union. It will finalize its work on 11 June 2005 ready for submitting its document, on Interim Guidelines to the AU Summit of Ju ly 2005. It was left to the AU to decide on the venue of the meeting of the Work ing Group; Following the adoption of the Interim Guidelines; the second phase will be initiated to prepare the Common External Air Transport Policy which will take a longer course facilitated by the Ministers responsible for air transport unde r the coordination of the African Union.

85. A representative of the foundation for democracy in Africa (FDA). A Unit ed States based NGO took the floor. He stated that the objective of his interve ntion was to bring to the attention of the delegates the need to strengthen air links between Africa and the US. With only 26 direct flights between African St ates are not adequately served in the United States, considering the huge market represented by the African diaspora which could benefit from such air links. H e recalled AUs desire to strengthen links with the diaspora and the amendment to article 39 of the Constitutive Act aimed at strengthening link with the diaspora . He also stressed the need for his organization (FDA) to work in collaboration with the AU on issues pertaining to air transport between the United States and Africa, particularly within the context of the United States Africa Summit on Sp ace Transformation scheduled to take place in Miami, Florida from 31 October to 2 November 2005. Agenda Item 5: Air safety and security: Report of the Meeting of the Air Safety Enhancement Team (ASET) Doc. AU/AT/4 (I) Presentation of the Report of the African Safety Enhancement Team 86. The report of the African Safety Enhancement Team (ASET) Summit was pres ented by Mr. Daniel Gallibert of the International Air Transport Association (IA TA) and Mr. Gaoussou Konat, Secretary to ASET. He informed the delegates that the report was an outcome of the ASET held on 23rd and 24th February 2005 in Nairo bi, Kenya. Its work was accomplished in four modules leading to conclusions and recommendations that are to be presented for endorsement at the meeting of Afri can Ministers responsible for air transport currently underway in Sun City, Sout h Africa. The modules are: Module 1: ca. Contribution of air transport to sustainable development in Afri

Module 2: Review of the outcome of the ICAO USOAP audits aimed at assessin g the level of compliance of States with the ICAO Standards and Recommended Prac tices. Module 3: The merits of a team approach in improving Safety and the use of Safety Management Systems. Module 4: Practical programmes to address Safety improvements

87. Following presentations and lengthy deliberations on each module, the Su mmit reached the following agreements and decisions 88. Recognizing that Air Transport plays a pivotal role in enhancing economi c development by bringing in business, trade and tourism. States agree: To commit themselves to ensuring a progressively more safe and secure environmen t to Air Transport by bringing down the accident rate in Africa to the worldwide average level by 2008; To commit themselves to expediting the implementation of the Yamoussoukro Decis ion and To adopt the necessary measures (in particular in terms of basic Aviation Law an d Technical Regulations) to discharge their responsibilities in terms of Safety Oversight; Considering that aviation Safety statistics in Africa are at an unacceptable lev

el; Considering that the poor level of implementation of ICAO provisions as revealed by ICAO USOAP (Universal Safety Oversight Audit Program) audits is a subject of serious concern in many States and calls for urgent corrective measures;

States decide: That they will look for every opportunity of bringing their resources together o n a sub-regional basis in order to collectively discharge their responsibilities in terms of Safety Oversight, implement common regulations and rely on a common body of inspectors; Recognizing that efforts aimed at analysing and preventing incidents in Africa h ave already produced positive results in the ATM field; Recognizing that ICAO on the one hand, and IATA as well as AFRAA, ASAA and other s have, on the other hand, actively promoted the concept of Safety Management Sy stems in airlines, at airports and in Air Traffic Services of Africa. States agree: To take measures aimed at ensuring the implementation of such systems in all rel evant aviation industry units under their supervision; To promote the implementation of non-punitive incident reporting systems in all aviation operational units; Whereas ICAO Contracting States have already agreed to participate in the USOAP programme aimed at auditing their Safety Oversight capability; Recognizing the tremendous positive impact on Safety of airline operations tha t can be achieved through the IOSA (IATA Operational Safety Audit) registration. States agree: to request their certified aircraft operators to take the necessary steps to ach ieve compliance with all the relevant Standards, Recommended Practices and best Industry practices in order to become IOSA registered; Request the assistance of NEPAD, UNDP and other institutions to help the airline s in the necessary efforts to prepare the IOSA auditing including the participat ion in IOSA training sources; States decide: To contribute to the dissemination of Safety information obtained from ICAO USOA P audits, from airline ramp checks or from other reliable sources; y; To implement frequent ramp inspections of aircraft landing within their territor

To explore possibilities of having their ramp inspectors all trained to the same standard of proficiency e.g. through cooperation with the European SAFA (Safety Assessment of Foreign Airlines) programme;

To seek ways to bring assistance to States that prove unable to improve their le vel of compliance with ICAO Standards and Recommended Practices; To cooperate with ICAO, AFCAC, airspace users, Air Navigation Service Providers,

aircraft manufacturers and financial institutions in order to fund sub-regional Aviation Safety initiatives SECURITY Urge African States to: foster regional cooperation for finding an accep table solution likely to help enhance aviation safety in Africa; Encourage African States to create sub-regional safety oversight agencie s, particularly within the framework of regional cooperation existing in integra ted sub-regional communities. SAFETY 89. The representative of UEMOA presented an innovative approach to monitor safety in a cooperative manner through a project with the support of AVSEC group of ICAO. To this end, legislation on safety had been prepared. A training pro gramme for national actors would be implemented and inspection and audit program me was to be initiated.

INVITE African States to: a) Establish emergency security plans at their airports;

b) Carry out simulation of crisis exercises on a regular basis and in depth emergency level; c) Coordinate on aviation security threats and assessments.

INVITE African States to: a) Support the efforts of ICAO and the UN to come up with mechanism to get MANPADS out of the hands of irresponsible individual and / or States; b) Closely monitor developments in this issue; c) Take appropriate measures to exercise strict and effective controls on t he import, export transfer and retransfer, as well as storage of the MANPADs and to cooperate at international, regional and sub-regional levels with a view to combating the threat posed by MANPADs. MRTDs (Machine Readable Travel Documents) Invite African States to take appropriate measures to issue to their cit izens Machine Readable Passports by 2010. ENVIRONMENT AFFIRM that ICAO should remain the forum in which global solutions shoul d be found to aviation environmental protection, including aircraft noise and en gine emissions taking into account the constraints and interests of each region of the world. Debate Participants are unanimous in recognizing that air security and safety related i ssues should henceforth be the primary concern for all including our States; The representative of UEMOA informed participants of the Experts meeting that thr ee community agencies will be created; Prior to that, a technical regulation has been prepared for the two regions and

will be examined next week by the Ministers in-charge of Air Transport of these two sub-regions; Consequently, there is no need to wait for ICAO audit to initiative actions aime d at enhancing air transport safety and security in Africa.

Agenda Item 6: Institutional Matters: Autonomy of the African Civil Aviation Commission AFCAC) AFCAC AUTONOMY a) Financial situation

The participants: Recognize that financial problems of AFCAC are impeding this Commission to implement its work programme and to fulfil its mission. Urge African States concerned to take appropriate action to urgently pay their full contribution for 2005 as well as the arrears. Institutional Matters

b)

The participants: Take note that AFCAC Autonomy should start 1 January 2007;

Take note that in this connexion an Extraordinary Plenary Session will b e held at the AU Commission Headquarters in Addis Ababa, from 8 to 9 September 2 005; Urge African States to take necessary measures in view to allowing AFCAC to achieve its autonomy in the best conditions. Tax on air ticket to generate income

c)

The meeting was informed that the resolution adopted by the Economic, Social and Cultural Council (ECOSOCC) of the African Union on the imposition of a tax of $ 5 on each air ticket for intra African flights in order to mobilize funds for th e Commission of the African Union. At the end of lengthy discussion, the delegations decided to express the positio n of the sector, particularly on the income issuing from civil aviation should b e used only to improve the performance of the sector. Recommendation 90. The Ministers responsible for air transport should pronounce themselves against any imposition of taxes that would add to the cost of air transport and would drain away the income of the sector towards other activities.

Agenda Item 7: The way forward/Plan of Action

91.

The Plan of Action is submitted in a form of a draft resolution.

Agenda Item 8: Any Other Business 92. There was no issue discussed under this item.