Airport and Air Navigation Charges in Africa Joint ICAO/AFCAC Regional Symposium for African States on the Economics of Airport and Air Navigation Services Kampala, Uganda, 17-19 August 2009

1

Working Together: the Airline View SAFETY PERFORMANCE

CAPACITY

COST-EFFICIENCY 2

Role of IATA Charges Team ¸ Engage airport and ANSPs in charges consultations ¸ Promote IATA / ICAO charges principles ¸ Drive cost reductions / efficiency improvements BUT too often… ¸ Opposing unjustified charges increases ¸ Need to lobby governments 3

ICAO Charges Polices Contain 4 key principles to protect users ¸ ¸ ¸ ¸

Non-discrimination Cost Relatedness Transparency User Consultation

4

CEANS Recommendations: ¸ ¸ ¸ ¸ ¸ ¸

Economic Oversight Minimum Reporting Consultation With Users Governance Differential Charges Security Costs

5

But we need follow-up ¸ Urge States to adhere to Doc 9082 ¸ Educate on basic charges policies ¸ Encourage States to adopt policy into economic regulation or law ¸ Monitor adherence to policies

6

Overview of Africa ¸ Non-discrimination ¸ Discriminatory charges are common

¸ Cost Relatedness ¸ Unclear revenue / funding allocations

¸ Transparency ¸ Lack of cost breakdown ¸ Proliferation of charges / taxes

¸ User Consultation ¸ Lack of meaningful dialogue ¸ Need of clear processes 7

Are charges too high in Africa…?

8

Comparison of en route charges En Route Charges Comparision for A320-200 flying 1000 kms $3,000.00 $2,256

$2,000.00 $1,500.00 $1,076

$1,028

$998

IlIllu lusstr tarati tvive eOO nnly ly

$852

$1,000.00

$660

$649 $375

$500.00

$310

$303

$289

$277

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Cost in USD

$2,500.00

(di (dffic ffiuclt ultto toc jou ocm pa jorun om renye- praeredi yb-abs dsitsan aesd tacne edfo c-eb fromr u -absae mlua sde v lsa)s d evrs eruss ) us

Comparison of en route charges (2) En Route Charges Benchmark for B747-400 flying 1000 kms $3,000.00 $2,538 $2,311 $1,972

$2,000.00

$1,762

$1,689 $1,529

$1,500.00

$1,437 $1,060

$855

$1,000.00

IlIllu lusstr tarati tvive eOO nnly ly $702

$653

$641

$500.00

10

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Af ric a So ut h

Au st ra l ia

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Br az il

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A N AS EC

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M ad ag as ca r

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Su da n

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$-

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Cost in USD

$2,500.00

(di (dffic ffiuclt ultto toc jou ocm pa jorun om renye- praeredi yb-abs dsitsan aesd tacne edfo c-eb fromr u -absae mlua sde v lsa)s d evrs eruss ) us

Airport charges comparison Charge considered in the comparison: Landing, Parking, Passenger (including development fee), Security and Noise

Assumptions: A/C model

B737-800

B747-400

Pax capacity

162

400

Occupancy (%)

75%

75%

Occupancy (Nr)

122

300

MTOW

79

397

- All international passengers or all domestic passengers (No transfer pax) - Turnaround time: 2 hours 11

Charges comparisons at selected African airports (B737-800) (Landing + Parking + Noise + Passenger + Security)

IlIllu l AAfr usstrtarat fircica itvive annA eOOn Airipr nlyly poort rsts

16,000

14,000

Charge (in USD)

12,000

10,000

8,000

6,000

4,000

2,000

0 Intl charges Ratio Int/Dom

Dakar Senegal (DKR)

Abidjan - Kinshasa - Bamako - Ouagadou Entebee - Douala - Windhoek Nairobi Kenya Uganda Cameron - Namibia gou Mali Cote de DR Congo (NBO) (W DH) (DLA) (EBB) Burkina (BKO) (FIH) Iv oire

Lagos Nigeria (LOS)

Kigali Rwanda (KGL)

Bujumbur Dar es Johannes burg Salaam aSouth Burundi Tanzania

Addis Casablanc Karthoum - Maputo - Mogadish Nouakcho aAbaba tt uSudan Mozambiq Ethiopia Morocco ue (MPM) Somalia Mauritania (KRT)

Tunis Tunis ia (TUN)

Algiers Algeria (ALG)

14,203

11,812

10,051

9,960

8,633

6,574

6,153

5,419

5,103

4,988

4,657

4,103

4,055

3,709

3,510

3,320

3,114

2,993

2,875

2,795

2,738

1,785

10.5

7.0

2.9

8.5

9.3

8.6

7.4

2.8

5.9

12.3

4.2

8.7

5.1

2.1

5.2

2.2

3.7

2.6

1.0

3.0

3.8

2.5

Airports

12

Note: Development charge included at Dakar, Kinshasa and Bamako

Charges comparisons at selected European airports (B737-800) (Landing + Parking + Noise + Passenger + Security)

IlIllu EEu lusstrta urorop ratitv peea iveeO annA Onnly Airipr ly poort rsts

16,000

14,000

Charge (in USD)

12,000

10,000

8,000

6,000

4,000

2,000

0 ATH Intl charges Ratio Int/Dom

CDG

AMS

FRA

VIE

LHR

ZRH

BRU

MUC

OTP

BUD

PRG

CPH

LIS

HEL

MAN OSL WAW (May- SOF Oct)

LGW

GVA

MAN (NovApr)

MXP

FCO

MAD

BCN

DUB

ARN

7,858 6,248 5,823 5,250 5,058 4,994 4,937 4,855 4,714 4,702 4,611 3,842 3,613 3,550 3,377 3,278 3,237 3,237 2,978 2,943 2,675 2,663 2,593 2,564 2,524 2,524 2,359 2,291 1.4

1.5

1.0

1.2

1.0

1.4

1.0

1.0

1.1

2.4

1.0

1.0

1.6

1.5

1.2

Airport

13

1.1

1.6

1.2

2.9

1.3

1.1

1.0

1.2

1.3

1.3

1.3

1.0

1.3

Charges comparisons at selected African airports (B747-400) (Landing + Parking + Noise + Passenger + Security)

IlIllu l AAfr usstrtarat fircica itvive annA eOOn Airipr nlyly poort rsts

40,000

35,000

Charge (in USD)

30,000

25,000

20,000

15,000

10,000

5,000

0 Intl c harges Ratio Int/Dom

Dakar Senegal (DKR)

Abidjan - Bamako - Ki ns hasa - Ouagado Douala - Entebee - Windhoek Lagos Mali Cote de ugou - C ameron Uganda - Namibia Nigeria DR (LOS) (WDH ) (BKO) (EBB) Iv oire (DLA) Burk ina Congo

Nairobi Kenya (NBO)

Tunis Tunisia (TUN)

Addis N ouakcho Maputo - Karthoum Mogadish Algiers J ohannes Kigali - Bujumbur Dar es Casablan Algeria uMoz ambi - Sudan tt Ababa ca Salaam aRwanda burg (ALG) Somalia (KRT) que Burundi Tanz ania Moroc co Ethiopia Mauritani (KGL) South

37,440

31,601

28,978

27,025

24,460

18,665

16,984

14,413

14,108

13,750

12,777

12,680

12,445

11,223

10,984

10,943

9,810

9,788

8,778

8,581

8,495

5,713

7.9

5.4

5.8

2.9

5.4

4.1

6.3

2.4

10.7

4.1

3.2

2.1

3.4

4.9

4.0

2.0

3.5

2.6

2.1

3.4

1.0

2.9

Airports

14

Note: Development charge included at Dakar, Kinshasa and Bamako

Charges comparisons at selected European airports (B747-400) (Landing + Parking + Noise + Passenger + Security)

IlIllu EEu lusstrta urorop ratitv peea iveeo annA onnly Airipr ly poort rsts

40,000

35,000

Charge (in USD)

30,000

25,000

20,000

15,000

10,000

5,000

0 ATH Int charges Ratio Int/Dom

CDG

AMS

ZRH

OTP

FRA

VIE

BUD

MUC

BRU WAW HEL

LHR

LIS

CPH

PRG

MAD

BCN

OSL

MAN GVA (May- SOF Oct)

MXP

FCO

MAN DUB (Nov- ARN LGW Apr)

20,057 18,263 17,020 14,455 14,006 13,974 13,389 12,550 11,972 11,818 10,942 10,934 10,804 10,382 10,133 9,992 9,004 9,004 8,833 8,511 8,368 8,264 7,833 7,751 7,337 6,957 6,289 6,068 1.4

1.4

1.0

1.1

1.9

1.2

1.0

1.0

1.1

1.0

1.4

1.2

1.5

1.4

1.5

Airport

15

1.0

1.3

1.3

1.1

1.2

1.2

3.5

1.2

1.3

1.0

1.0

1.3

1.4