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Africa’s Transport Infrastructure
domestic routes are not well advertised, domestic airfares were most difficult to sample: only 13 price points were found. Standard booking Web sites were then used to determine the lowest-cost flights. Figure 4.5 shows the price of tickets per nautical mile for flights of various lengths, based on the samples. Air travel within Africa appears to be considerably more expensive per mile flown than intercontinental travel, especially on routes of less than 4,000 km. This result reflects the larger markets and higher competitiveness of the intercontinental routes.
Economic Regulation and the Yamoussoukro Process Two common beliefs have limited entry into the air transport market of African countries. First is the belief that if services become too competitive after deregulation, then routes with low traffic volumes that are not economically viable will drop out of the system, isolating some parts of the country. Second is the belief that a national flag carrier, if owned and operated by the government and given sufficient market dominance, can support services on less viable—but socially necessary—routes with revenues from more profitable routes. As a result, each country protects its routes and allows airlines from other countries to enter its market only in exchange for a similar allowance. Much of the world has relaxed or removed such strict regulations. In the United States, deregulation has had several positive effects: increased price competition, the disappearance of weaker carriers, the more efficient
US$ per km
Figure 4.5 Pricing of Flights within Africa versus Intercontinental Flights, Kilometers Flown 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 -
2
4
6 8 10 distance (thousand km)
international domestic
12
intercontinental between SSA and NA
Source: Bofinger 2009 (based on data collected by the World Bank).
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