The high cost of taking a 50-minute flight within the East African Community reflects a long-standing paradox in which intra-African air traffic is growing faster than global averages -- and passengers pay higher fares -- yet a majority of the continent’s biggest carriers make major losses. A prime driver of this dynamic is the high tariffs, fees and quotas imposed by African aviation authorities, in what remain highly protected markets. Deregulation of Africa's airspace has long been touted as the solution. However, the political impediments to achieving such an outcome remain substantial.
Aviation sector developments will be crucial for the continued growth of Africa’s tourism industry.
Improved aviation safety standards would reduce the costs of financing and insuring aircraft.
Carriers that receive state support, such as Ethiopian Airlines, will still do better than their competitors.
