Restriction on air carrier market affects Mozambican economy

26 October 2006

Maputo, Mozambique, 26 Oct – The lack of openness in the Mozambican and Angolan air transport markets will prevent the countries from benefiting from the 2010 soccer World Cup Championship in South Africa, a study by a South African company has warned.

The survey, entitled, “Free Skies over Southern Africa” was drawn up by Genesis Analytics for South Africa’s ComMark Trust.

According to the study, the governments of Angola and Mozambique are inhibiting the growth of the air transport and tourism sectors by restricting the entry of more private carriers in their air space.

The study also criticized the prices charged by the state operators of both countries, particularly for routes to and from the World Cup 2010 host country.

As an example, the study said that the trip from Maputo to Johannesburg, the economic capital of South Africa, is 163 percent higher than the price of a flight from Johannesburg to the port city of Durban, despite both trips lasting just one hour.

“The price of a Maputo-Johannesburg ticket is high due to the monopoly on these flights held by the state air carriers of both the countries,” the report said.

“The research calculation show that the SADC (South African Development Community) countries are paying a high price for the obstacles they place on their transport market,” said Genesis Analytics.

If the Maputo-Johannesburg route was liberalized, with the result of lowering flight prices, tourist entries into Mozambique would increase 37 percent and 3,000 jobs would be created.

The study said that the Mozambican government’s intention to liberalize the air transport market was being stopped by aviation sector lobbies. (macauhub)