East African Business Council calls for harmonization of air fares

The East African Business Council (EABC) is calling East African heads of States to implement the open skies policy to facilitate intra-regional trade.

The regional lobby group has decried the high cost of air travel within the region saying it’s an impediment to the movement of people and goods. 

Regional carriers have been pushing for an open skies policy to allow national carriers to move without restrictions to regional countries.

The East Africa Community’s intra-regional trade stands at under 20%, the highest in Sub-Saharan Africa. However, compared to the European Union which stands at above 70 percent, the EAC numbers fail in comparison.

As of 2018, trade between EAC member states stood at $5.98 billion.

The EAC Business Council is calling for harmonization of air travel policies of each partner state, examination of the factors that determine air ticket costs, and development of uniform air travel regulations to facilitate movement of people and goods.

EAC has one of the most expensive flight routes in the world per-seat costs led by the Nairobi to Entebbe, Nairobi to Kigali and Nairobi to Dar es Salaam routes.

The expensive rates on both passenger and cargo flights contribute to the high cost of doing business in the region.

The EAC Secretariat says a large percentage of air ticket prices in EAC comprises regulatory charges and taxes, landing and parking rates, with regulatory fees accounting for up to 24 percent.

The Business Council is lobbying regional governments to work with the private sector to address the issue.

A 2015 study by the East African Business Council titled Costs and Benefits of Open Skies done in the East African Community said that harmonization of air travel could lead to a reduction in airfares by nine percent; and a 41 percent increase in frequencies which would stimulate demand.