Speaking at the 81st International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in New Delhi, William Walsh, Director General of IATA, emphasized the urgent need for African governments to implement policies fostering a unified aviation market to overcome persistent challenges such as high operating costs.
“We need to see a single market in Africa without question,” Walsh stated. “The only way we’re going to see Africa fulfill its full potential is if we make it easier for airlines to fly within the continent. Everybody acknowledges that it’s the right thing to do. Nobody’s prepared to actually take the bold step forward. And if it doesn’t happen, Africa will remain at 2% of the global industry — as it was 10, 20 years ago and will be 10 years from now.”
Walsh highlighted that Africa’s fragmented aviation market drives up costs, limiting growth opportunities. “The structure of the industry there is just so expensive because of all the additional costs associated with the fragmented market that exists,” he said. Despite healthy growth projected at 8% this year, Walsh noted this is only a fraction of what could be achieved if operating conditions improved to allow airlines to operate more freely and cost-efficiently.
Addressing challenges specific to Southern Africa, Walsh pointed to common issues across the continent. “The cost of operation is higher than average. You’re paying more for fuel than the rest of the world. Airport charges are expensive compared to many other parts of the world. There are challenges in retaining skilled labor because of competition from regions like the Gulf, which are aggressively recruiting,” he explained.
Walsh underscored that Africa’s limited aircraft availability forces airlines to prioritize more efficient, lower-cost markets, further constraining growth. “The opportunity for the continent is very impressive, but it’s just not translating into reality because of all these factors,” he said. He also criticized governments for viewing airlines primarily as sources of tax revenue, adding to their operating burdens.
When asked about the Single African Air Transport Market (SAATM) initiative, Walsh acknowledged its failure to deliver so far. “You could say it’s a failure because agreements are reached but never implemented. I never celebrate the signing of an agreement — I celebrate the implementation. Clearly, there’s no reason to celebrate yet,” he said.
However, Walsh remains convinced SAATM is the solution. “Privately, most people accept that. There’s fear about what happens when you introduce it, but they shouldn’t be afraid. Other markets that have deregulated — the US, Europe, parts of Asia — have seen fantastic growth because it makes the industry more efficient and opens opportunities for airlines.”
He cited Aer Lingus as an example of a state-owned airline that successfully adapted to deregulation and intense competition, suggesting African airlines could similarly thrive if given the chance. “Aer Lingus had to change to reflect the new competition, but it succeeded. That should give hope to anyone,” Walsh said.
He concluded with a call to action: “We must continue to challenge governments on why SAATM hasn’t been introduced and encourage its implementation. IATA has a role to play in highlighting the benefits and supporting that process.”
The 81st IATA AGM and World Air Transport Summit, held from June 1 to 3 in New Delhi, India, brought together over 1,700 delegates, including airline executives, government officials, and industry experts, to discuss the future of global aviation amid complex economic and geopolitical challenges.
