The EU has just released the list of 279 airline companies not allowed to fly into the EU air space. There are 17 African countries out of a total of 21
worldwide. Check out the full list in French and in English.
This is a big blow for many companies in the developing world as they seek to tap into a growing business sectors that just a few years ago was reserved only to western companies. One can argue that with the EU in economic crisis, all is been done to protect the European market. The travel and tourism sector in the EU is one of the last lifeline of the economy. A plane crash in EU sky will be very damaging for the economy.
The table below shows the impact of travel and tourism in the economy.
This is a big blow for many companies in the developing world as they seek to tap into a growing business sectors that just a few years ago was reserved only to western companies. One can argue that with the EU in economic crisis, all is been done to protect the European market. The travel and tourism sector in the EU is one of the last lifeline of the economy. A plane crash in EU sky will be very damaging for the economy.
The table below shows the impact of travel and tourism in the economy.
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| http://www.wttc.org - travel & tourism in the economy |
In 2010 when the list was publised the African Airlines Association shot back with the following statement:
“The ultimate beneficiaries of the ban are European airlines which dominate the African skies to the disadvantage of African carriers. If any list is to be published, it should be done so by the International Civil Aviation Organisation (ICAO), the global regulator of aviation safety, which has a known track record of impartiality.” According to AFRAA, the EU list has the effect of damaging the reputation and business of many scheduled African airlines whose safety records and adherence to ICAO safety standards are comparable to the best airlines anywhere in the world.
The Association contends that a detailed examination of the EU list reveals some contradictions. For example, • The majority of the African airlines on the list have never operated scheduled flights to Europe, do not plan to do so and have no aircraft with the range to fly to any EU state.
The list includes many airlines that only exist on paper and are not operational. The list indicates that neither the operating license nor the ICAO registration number of most of the banned airlines are known.
In contrast to the position taken by the EU on African air safety challenges, the USA introduced the “Safe Skies for Africa” initiative aimed at upgrading capacity, developing skills and providing infrastructure to improve safety. All this is being done at a time when only a few US carriers are operating to Africa. AFRAA calls upon the EU to emulate the good example of the US and launch an air safety improvement programme for Africa rather than issue a “blacklist” which has not proved to be helpful in solving the problem."
Very often in "third world" countries, when there is a crash, local institutions are blamed, primarily the
government for not doing a proper oversight. Cases of corruption related to aircraft inspections are frequent. Recently a jailed former high official of the government of Cameroon in a spirit of vengeance revealed with documentation that the current Information Minister received USD 171,247 in kickbacks after awarding an inspection contract of the late CAMAIR -the defunt national airline company- to a South African company. As a result, inspections were rarely done leading which led to a crash that killed dozens of passengers. The sad part of this story is that, although the government of Cameroon was compensated, the families of the victims never received any form of compensation from the government. The opposition is demanding that the parliament launches a full investigation on the matter. The government is yet to make an official statement on the matter.
Looking deeper, it is not surprising that the majority of planes operated by companies located in developing countries have been banned in western countries because of various safety reasons. Some of the technical issues on these planes are very complex and may not be easily fixed by replacing a few parts here and there. parts. the importance of well-trained inspector is crucial. Here is a revealing transcript with commentary of a routine inspection of a flight operated by an African airline company.
In many cases private airline companies operating in developing countries are subsidiaries of western company, a sort of cash cow to generate extra revenues in an environment of total lack of state control or weak regulation.
Just last week you probably heard about the crash in Nigeria and Ghana of two planes owned by Nigerian companies. These crashes where apparently linked to pilot error and the fact that the airports where located in densely populated area.
You will be surprised to hear that there is no age restriction for aircraft in the EU. However the inspection system is stringent enough to ensure that flights can be operated in a safe environment.
In Africa and Asia, countries are starting to take things in their own hands. DRC, Bolivia, Malaysia, Mongolia, Russia, Uganda, Venezuela and Zimbabwe are adjusting existing age limitations or imposing new age caps on locally operated aircraft. It is a good step. However regular shop visit are needed to ensure that aircrafts are fit for flight.
Banks are afraid these new restrictions will have a significant impact on their ability to finance older aircrafts since depreciation is going to be accelerated. I personally believe this will create a sound business environment and weed out rapacious and aggressive investors eager to make a profit while putting at risk peoples’ lives. Bankers are disappointed to see such regulatory move in the so called "Growth market" in India, China, Russia and Indonesia.
