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Airlines act to stimulate demand as Pandemic lingers By Dominick Andoh
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he impact of the current global pandemic has had far-reaching consequencies on not just the aviation and tourism sectors but on all other allied industries which are still struggling to restart their operations. The multiplier effect of the two main sectors, in terms of job creation and contribution to the country’s Gross Domestc Product (GDP), means a restart of aviation and tourism in a safe mode is imperative. Airlines provide the vital link between major tourist generating areas and destinations; making it a fundamental component of tourism. Conversely, research has shown that for the transport industry, there can be substantial benefits from tourism because of the additional demand which this type of travel can produce. PAGE 02
Raphael Kuuchi appointed AFRAA’s Director of Gov’t, Legal and Industry Mr. Raphael Kuuchi, has been appointed as the Director for Government, Legal and Industry affairs of the African Airlines Association (AFRAA). He rejoins AFRAA in this consulting role from the International Air Transport Association (IATA) where he served as the special envoy to Africa on
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Ghana’s Air Navigation Agency Complex Completed By Natasha Appiah A new multi-level office complex within the Kotoka International Airport enclave to house the Air Navigation Services Agency (ANS) is fully completed and is expected to be inaugurated in the coming days. The need for a new office complex for the ANS follows the passage of the Air Navigation Services Agency Bill in November 2020 that created an autonomous and independent PAGE 03
The Boss’ Interview Interview with Prof. Temel Kotil, President & CEO, Turkish Aerospace PAGE 06
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Airlines act to stimulate demand as Pandemic lingers Aviation is an increasingly important mode of transport for tourism markets. Whilst geography has meant that, in modern times, air travel has always been the dominant mode for long distance travel and much international tourism, it has also increased aviation’s significance for short and medium haul tourism trips. Globally, airlines typically pay governments US$111 billion per annum in tax revenue, but in this COVID-19 era, the sector required life support from aid totaling about US $173 billion. The industry is forecast to make net losses of US$118 billion this year, cutting these losses to US$38 billion in 2021, according to a recent International Air Transport Association (IATA) data. In Ghana, the aviation sector contributes an estimated US$2.6 billion to the country’s GDP per year. Given this essential data, how does Ghana support the aviation industry to regain its 2019 levels and save the jobs of hundreds of workers in
allied industries made redundant by the current pandemic? The key ingredients Test & Fly With the increasing cases of the COVID-19 in many destinations across the world, a COVID-19 testing regime rather that a strict quarantine regime has been advocated for by IATA. Ghana has a firm testing regime in place. The antigen test conducted at the Upper Arrival Hall of the Kotoka International Airport, has made it possible for international airlines for restart operations beginning on September 1, 2020, albeit with reduced frequencies. However, the cost of the test, which by every indication, increases the cost of travel for the average traveller by as much as US$150, is a big disincentive to a struggling industry trying to stimulate demand. For instance, Accra-Dubai-Accra is currently selling, starting from US$550. The cost of the COVID-19 test before departure cost about GHC 400. Upon arrival—for arrivals longer than a week for Ghanaians—
Raphael Kuuchi appointed AFRAA’s Director of Gov’t, Legal and Industry aero-political affairs and IATA Vice President for Africa respectively. He has many years’ experience in air transport management, operations and consulting. After working with an airline in various senior management positions for over a decade, he joined the Nairobibased African Airlines Association (AFRAA) in 2005, as Commercial Director and later as Director Commercial, Corporate and Industry Affairs. In this capacity, Mr. Kuuchi initiated and oversaw many projects in airlines business development, commercial operations, IT and communication, liberalization/market access, aeropolitical/regulatory affairs and training across Africa. As Vice President for Africa, Mr. Kuuchi led the IATA Africa team in providing support to the growth
and development of aviation and working with stakeholders to ensure safe, reliable, competitive and environmentally sustainable aviation business in Africa. Top on his priority were issues of safety and security, liberalization, reducing the high cost of operations, regulatory harmonization, capacity building and the environment. Mr. Kuuchi holds an MBA from Henley Management College, UK and a B.Sc. degree in Business Administration. He is a Fellow of the Chartered Institute of Logistics and Transport (FCILT) UK.
the travelers is expected to pay US$150 for the antigen test. Cost of Return Ticket US$550 + US$68 cost of PCR test before departure + US$150 cost of antigen test upon arrival = US$768 To encourage more travel, especially within Africa and to other destinations that are open, a rethink of the cost of the KIA COVID-19 test is imperative. Aggressive promotion by airlines January and February are typically lean months for airlines and an aggressive promotion of various destinations with special fares will serve to encourage COVID-19fatigued travellers to consider seeing new places. Emirates, Ethiopian Airlines, Turkish, EgyptAir, and others have announced special promotional fares to encourage more travel. Relief by Airports Company The country’s airports management company, Ghana Airports Company Limited (GACL), in response to the challenges faced by airlines in Q2 2020, waived rent
for all airline offices at the KIA and the regional airports for the second quarter of last year. The GACL also waived various aeronautical charges—landing, parking, and lighting—for the same period. For concessionaires operating at the KIA and all regional airports, the GACL has also waived rent and royalty payments from April-June. For other tenants of the various airports, gift shops, restaurants, forex bureaus and others who have been severely impacted by the lack of or reduced activities, the GACL has waived rent for quarter-two. Though the move will erode the company’s aeronautical and non-aeronautical revenue, which is an important revenue stream, the GACL, sees it as a means of supporting airlines in these difficult times; it is in itself an investment in its future income. While that is laudable, an extension of the rent waiver and other such charges, should be waived or deferred to a later date to give operators some respite. (Info@aviationghana.com)
Ghana’s Air Navigation Agency Complex Completed entity out of the current Ghana Civil Aviation Authority (GCAA). The separation of the air navigation and regulatory functions of the GCAA is in line with international best practice in aviation and recommendations of the International Civil Aviation Organisation (ICAO) to ensure that the GCAA does not act as an operator and regulator at the same time. Despite the benefits and recommendations by major global agencies of aviation including ICAO, the Universal Safety Oversight Audit Programme (USOAP) and Civil Air Navigation Services Organisation (CANSO) for the separation of the ANS function from the regulatory role of the country’s CAA, it has been on the drawing board since 2006. This move adds to Ghana’s
AVIATION GHANA Bombay Jnc. Off George W. Bush Highway, Darkuman Road, Accra Ghana.
continuous high record of improving the aviation sector reforms in line with the attainment of the President’s vision of making Ghana the aviation hub in West Africa. Aviation Minister, Kofi Adda, told AviationGhana on Wednesday January 6, 2020 that: “These are all in line with the legal and regulatory reform agenda of the government to strengthen and improve safety and security in the aviation sector.” (email: info@aviationghana.com)
Editorial Editor@aviationghana.com Phone: +233 243376878
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What to know about Air Cargo Operations in Ghana By Dr. John Okwesie Arthur.
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here are four (4) cargo handling companies licenced to operate in Kotoka International Airport. They are: Aviance Ghana Limited, AHS Aviation Handling Service, McDan Aviation and SwissPort Ghana Limited. Kotoka International Airport (KIA ‘s) cargo flights include a combination of all-cargo freighter aircraft and belly-loaded passenger aircraft. Approximately 60% of the total cargo is currently transported on passenger aircraft and 40% on freighters. Cargo hub in Ghana: A cargo HUB is an airport where facilities are provided for easy and fast connections and trans-shipment of air cargo traffic. There is a significant opportunity to increase cargo flow through Kotoka International Airport (KIA) as a result of the further development of passenger service or by increasing the all-cargo service offered at Kotoka International Airport(KIA). An increase in passenger flights by both scheduled and non-scheduled airlines have a positive impact on the opportunities for belly cargo being moved throughout the network. · The first necessity for the development of improved cargo flows is a regulatory regime that encourage cargo service. Ghana offers this as the nation presently has an open skies policy with regards to cargo. All carriers may enter with whatever frequency they wish. DHL has taken advantage of this and has already turned KIA into a regional hub. The second driver of the development of a cargo hub is bidirectional cargo flow. In order to successfully operate an all cargo service, there must be cargo going outbound as well as inbound. · The third key factor is the cost of operation at the airport. To attract a hub cargo carrier, the cost of fuel must be closely controlled, as it is the largest variable cost of operating an airline business · Finally operational issues are a key item in the decision of a company to operate to or through a country. Generally integrated carriers tend to want to control the entire package movement process from the moment the item to be shipped is put into the system until it is delivered. In the nutshell, the
ability for integrated carriers to selfhandle in a more efficient manner than plane to plane transfers will be important in the development of additional hubbing operations for such service providers. Cost factors must also be managed to help to ensure that Kotoka International Airport (KIA) is competitive with other airports in the region. AIRPORT CARGO FACILITIES One could argue that cargo facilities occupy large amounts of often precious space, generate road traffic movements and congestion, and add little revenue to the coffers of most airports. It is therefore important to begin with first principles in understanding why cargo facilities are important for airports. There are two main airport types in the air cargo business: An international hub airport - such as Singapore, Hong Kong, Los Angeles, New York JFK, London Heathrow, Paris CDG, Frankfurt or Amsterdam. These airports offer destinations, frequency and scale. They attract networks of road feed, supporting services for the airline cargo business including freight forwarders, thirdparty logistics providers and ULD suppliers/repairers. The airport’s cargo business is interdependent with its passenger business, with air routes often justified through the contribution of both businesses. Without cargo in the holds, many of the routes from hub airports would be harder to cost justify; Cargo airports - such as Victoria, Leipzig, Louisville or Anchorage. Here the operations of the airport are, to a greater or lesser extent, dependent on air cargo activities rather than on combination freight and passenger activities. There are few of these airports around the world. Factors for good air cargo business 1. Cargo Marketing Cargo is an increasingly vital consideration in route decisions for airlines. The sum of all revenues available from flying a route is considered in making network decisions. Therefore, to attract and retain carriers, a hub airport needs to provide an environment in which airlines can succeed in both the passenger and cargo businesses. To do this, route marketing at an airport — must take into account the drivers and opportunities for a cargo business, with the local import and export business important considerations. Commodities, seasonality, origins and destinations, special handling
requirements, freight rates, existing services and capacity will all help an airline to understand what business it might gain and the revenue it can produce. Equally significant to an airline is to understand the local competitive handling environment in terms of service, cost and the capacity of various ground handlers to provide service. It is important that the airport ensures in all ways that carriers’ needs and expectations regarding space, access and price are understood if it is going to secure additional services. 2. Infrastructure To attract and support a carriers cargo business, an airport needs to provide a freight handling and storage environment appropriate to the local market. This alone poses the airport operator with many considerations regarding which facilities are required, how much space should be dedicated to cargo and, if not already in existence, the most appropriate location for a cargo area. In Ghana, Swissport is managing a state of the Art Cargo warehousing infrastructure. Aviance and AHS have warehousing infrastructure in Kotoka International Airport (KIA). 3. Facilities In determining cargo facilities requirements, the needs of the various stakeholders are paramount. How many freight handling and storage buildings, whether they will be individual or shared facilities, single or multistorey, automated or nonautomated, should be established through close communication with prospective airline and/or handler tenants and other cargo industry participants. This decision will depend on factors such as budget, available space, product offerings, freight forecasts, availability and
skill levels of labour and the growth expectations of tenants. A cargo area will need to accommodate the general needs of stakeholders, such as administration facilities, staff and customer parking areas, canteens and other social amenities for employees. There will also be a need to satisfy regulatory requirements by providing Customs facilities and security control posts, and in some cases specialist facilities such as veterinary and border inspection posts for clearance of controlled livestock, food and plant products. Depending on the individual country’s legislation and security regime, facility, process and procedural requirements with respect to control posts and facility security, will differ of course, these are also subject to change over time. In developing a cargo area, it is wise to allow some flexibility for potential changes in policies. Then, if policies are made more stringent, the operation can be readily modified without compromising the efficiency or effectiveness of the cargo business.
There is an excerpt of a yet-tobe-launched book titled ‘Airport Business In Ghana’ authored by Dr. John Okwesie Arthur.
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THE BOSS’ INTERVIEW
PROF. TEMEL KOTIL, PRESIDENT & CEO, TURKISH AEROSPACE ATN: How has COVID-19 impacted your businesses? TK: Since many of aviation companies have affected by COVID-19, it is also affected our efficiency but as Turkish Aerospace, we keep continue to develop our projects and deliver the required products that we need to for the Turkish Air Force. Our colleagues are working in shifts and they have been working with maximum health protection structure in the company. For instance, as a company we are so intense to see wearing mask, working with shifts within the rules of social distance, and etc. ATN: TAI cooperates on component products with Airbus and Boeing. Can you elaborate more ton his collaboration and its the main products? TK: Turkish Aerospace produces for Boeing and Airbus as well as other OEMs. Basically on the civil part we produce main aero structural parts for civil helicopters. For Airbus narrow bodies we produce SEC18 Panels and Section 19 -fuselage panels- for all aircraft , it is a big section and for Boeing we make wing tips panels for 73, that is a big part of the body. In addition we have produced and completed the 500 aircraft metal panels for Gulfstream and 368 of Helicopter fuselage in total for Leonardo Helicopters. I would like to highlight that we maintain critical components for the biggest companies in the world. ATN: What percentage does this business represent this for TAI? Do you plan to increase this percentage? TK: The production for Airbus and Boeing represent around 25% of our business. Since we would like to expand our production, new composite structural aircraft facility 95,000 square metres-of closed areaone of the fourth largest composite
facilities in the world will be built. In Turkey the cost structure, especially the labour cost structure, are very favourable, if one combines the labour cost and investment he can do good business and this is what we are after. Turkish Aerospace aspires to expand to cooperations in passenger aircraft business. We are talking with potential partners but as things have not concluded yet,, there is nothing to announce. We want to produce turboprop aircraft for airline companies. The current crisis creates problems for airlines but with many aircraft withdrawn from operation, the restart of business will perhaps lead to increase to aircraft orders. We can learn and draw conclusions from Turkish Airlines’ experience from previous crises. In 2003 with the Iraq war issues, business dropped immediately but recovered immediately too. The same happened in 2009 economic when traffic dropped by 4% but Turkish Airlines grew by 11%,, it gained market power All this experience shows that next summer that airline business will come back I hope and I believe that next summer will be regular for airline business. Based on this experience I believe that business will return next summer but the emphasis will be on airlines, offering good quality service, passengers have missed the flight experience but they will demand good quality, perfect, service. Airlines that will become aggressive on service and frequency will be the winners. Airlines should be prepared, most airlines are facing financial issues but this situation is temporary. Airline business has been growing at 4-5% per year , the sector has lost two years so there is a 10% waiting to jump. There will more frequencies, connectivity will be very important. ATN: TAI produces UAVs. Is there
any intention to produce UAVs for commercial use? TK: Things will develop, according to IATA also, in this direction. We can deliver things without the pilot Regulation wise there will be more focus on this area. UAVs will be used in civil aerospace in a more sophisticated way, I believe there is a big prospect future for UAVs as they are truly intelligent and very sophisticated and they will become part of our lives. The regulation is still lacking in the civil and aerospace area. There is a big future there. ATN: Is there any intention to launch new projects on commercial aviation? TK: We see a growing need for turboprop aircraft and we would like to manufacture in their entirety as a whole product but without excluding partnerships. There will be new designs for narrow bodies and turboprops because we have used this kind of technology in other product development and the new state of art engineering could make a huge difference. We produce 12 seater passenger helicopters, which I strongly believe will be the winner very soon and we are waiting for the certification flight. We are studying 70-90 seats turboprops and flight control intelligence will play a huge role. It is not solid yet we are talking with the potential partner but our emphasis is on new aircraft. Urban transport like, Aerotaxis is also a big business there are small companies in Europe that are doing great. But Turkish Aerospace, is not interested in this area. The new flight control systems, the new intelligence sensors are changing our lives. Aerotaxis, new UAVs, new passenger aircraft will come, not tomorrow but in 10 years there will be here. They have come but they
are not mature yet. And regulation related the new technologies and safety measures should pay more focus on these growing areas. ATN: How do you see Turkish air transport in the next decade and also how do you see the post COVID commercial air transport landscape? TK: Turkey as an entry gate has enjoyed growth on the passenger side. And on the manufacturing side we grow about 25% a year, the company made in 2010 two billion dollars, which is not big we are targeting at making 10 billion dollars in 2020 On the passenger side, Turkey is a good gateway and the new Istanbul Airport is in full operation right now and Istanbul will enjoy big number of transfer passengers and after COVID-19 it will become obvious. I have great expectations for passengers in Turkey and for Istanbul airport and for Turkish Airlines, my “old baby”. ATN: Are there any plans for you personally to return to commercial air transport? TK: No, I am in manufacturing now and I am enjoying it. ATN: Are there any last thoughts you want to share with ATN readers? TK: First, I will address the passengers and tell them “please fly, flying is good, is healthy. Phone-calls, videoconferencing is nice but they cannot replace the thrill of visiting places. And then turn to airlines to ask them to focus on service quality as passengers need it, they need for ex. a good dinner in the air. Good service, aggressive network is the key to success in the post COVID-19 period. This interview was first published in Air Transport News (ATN) it can be accessed via https://www.atn.aero/#/ analysis.html?id=2060
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Electrifying African Transport By Mohamed Hegaz
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any transport experts think that we are succeeding in decarbonizing the sector: electric vehicles are taking off, public transport use is increasing, and cities worldwide are promoting cycling. But this sense of success is illusory. Globally, transport-related greenhouse-gas (GHG) emissions are increasing faster than ever, despite technological advances and investments in decarbonization. This is especially so in Africa. Transport investments will be crucial in determining whether Africa heads toward an inequitable, carbonheavy development trap or a much fairer zero-carbon path. To achieve full decarbonization, development banks and African governments should move away from capitalintensive rail and bus rapid transit (BRT) projects, and toward enabling micro-entrepreneurs to build effective, electrified public transport networks. The solution may lie in fostering impact-driven transport network companies (TNCs). Although Africa is responsible for some 3% of cumulative global carbon dioxide emissions, it is urbanizing at lower levels of per capita GDP than any other region. As the continent’s cities continue to expand, Africans increasingly need to travel – by motorized public transport, motorcycles, or private cars – in order to attain the same level of prosperity as people elsewhere. Micro-entrepreneurs are meeting many of those transport needs by investing in vans and providing informal bus services that connect the urban dwellers with schools, hospitals, and jobs. Such operations have helped Africa’s cities to grow, generated significant employment, and will continue to dominate public transport for a long time. But the bus drivers, some of whom own their vehicles, are short of capital and rely on low-cost, lowtech, high-polluting vans. Passengers aspire to own a private car, and those who can invest in a car-centric lifestyle, mimicking a development pattern that has failed elsewhere. A development trap thus kicks in: African cities remain crowded, disconnected, and costly, reducing social mobility and entrenching economic inequality. Fortunately, a range of urban and technology interventions can lead to a radically different development pathway. The key is to re-imagine
African streets and move away from the current car-focused design. We should emphasize public transport, and give micro-entrepreneur bus operators priority lanes in exchange for meeting minimum vehicle-quality standards. That implies electrifying van-buses and integrating them within multi-modal urban transport systems. Achieving this transition will require development banks and governments to focus less on capital-intensive investment projects, which, while helpful and desirable, cannot and will not solve Africa’s transport problem. Successful implementation of creditbacked metro and BRT projects in African cities is in doubt, owing to the current debt distress aggravated by the COVID-19 pandemic. These schemes are at risk of being completed too late, and thus having too little impact as urbanization proceeds apace. In Egypt, for example, the Cairo Metro, which is majority-financed by international development agencies, receives 92% of national investment in public transport. This is one of two national projects, along with the Sustainable Transport Project (led by the United Nations Development Program), designed to mitigate Egypt’s CO2 emissions and use international climate-financing schemes. But both projects combined cut annual CO2 emissions by less than is added each year as more people travel increasingly far. Capitalintensive public transport projects will neither reform nor decarbonize African transportation. Policymakers and lenders should instead focus on how venture capitalbacked TNCs such as Uber (and its Middle Eastern subsidiary Careem), DiDi, and Lyft have revolutionized
the traditional taxi industry with their tech-enabled mobility platforms. This transition has resulted in significant operational efficiencies and might catalyze the electrification of the entire sector. Uber recently pledged that all its rides in North American and European cities will take place in zero-tailpipe-emission vehicles by 2030, and plans to commit $800 million to help hundreds of thousands of micro-entrepreneur drivers buy battery electric vehicles (BEVs) by 2025. In Africa, home-grown venture capital-backed TNCs such as SWVL in Egypt and SafeBoda in Uganda are active in the van and motorcycle markets, respectively. But these firms offer a premium service and are not designed to scale up and become the transport providers that African cities need to prosper. These companies have exercised meaningful control over microentrepreneurs operating within their networks in order to guarantee minimum quality standards, including by setting base fares, dictating which routes to take, and marketing to affluent consumers. By treating their drivers as independent contractors rather than employees, they have avoided the cost of providing benefits like health insurance. A new model of private TNCs could help revolutionize informal bus services for the masses and achieve decarbonization. Public support and regulation of private TNCs could help drivers gain more benefits and protections, making the transition beneficial for consumers, operators, and the environment alike. Development banks and governments should therefore invest in street infrastructure, including
dedicated bus lanes, stops, and electric vehicle charging stations, and they should finance vehicle upgrades by covering the cost difference between low-tech vans and BEVs. TNCs would be able to channel the investments, work with public bodies to implement metropolitan-level multi-modal transport networks, and monitor and enforce quality standards using innovative, scalable technology. We need to rethink Africa’s transport infrastructure and enable a transition that makes sense for hundreds of thousands of workers, some of whom are also micro-investors. Achieving public-service goals will require governments to guide the sector, harnessing private-sector informal transport providers and TNCs while absorbing temporary risks and cost differences. Public and international capital can close the cost gap that drivers will face in making the switch to BEVs and support them through the current pandemic-induced shock, which has led to an average decrease of 40% in public transport use in African cities. Private capital would realize efficiencies, and distributed public micro-capital would allow many people to acquire a stake in an industry with widely shared gains. Transforming African transport will require nothing less than the elimination of GHG-emitting vehicles. Let’s aim for that, and help African cities to become better connected drivers of clean and equitable development.
Mohamed Hegazy is Founder and Director of Transport for Cairo. Copyright: Project Syndicate, 2021. www.project-syndicate.org
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A fairer way to help developing economies decarbonize By Kenneth Rogoff
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ith US President-elect Joe Biden’s incoming administration promising a fresh, rational approach to climate change, now is an ideal time to make the case for a World Carbon Bank that would transfer and coordinate aid and technical assistance to help developing countries decarbonize. The proposed Green New Deal in the United States and the European Commission’s European Green Deal have laudable environmental goals but are too inward-looking. When an entire building is burning, to concentrate firefighting resources on one floor would only delay, not prevent, its destruction. According to the International Energy Agency (IEA), almost all the net growth in carbon dioxide emissions over the next two decades will come from emerging markets. Although China recently pledged to achieve zero net emissions by 2060, it is sobering to consider that it accounts for half of the world’s coal output and half of its coal consumption. India, too, is highly dependent on its plentiful coal reserves, and will likely remain so despite strong advances in solar power. For all the fanfare accompanying the 2015 Paris climate agreement, the share of clean energy in global energy investment is still only around 34%, almost exactly the level five years ago. Wind and solar account for only 8% of global energy. The IEA estimates that allowing existing power plants to operate for the remainder of their expected lifespans in their current form would by itself cause global temperatures to rise by 1.7 degrees Celsius relative to pre-industrial levels. Right now, the most widely discussed approach to encouraging developing economies to cut their CO2 emissions is a carbon border tax on imports from countries without adequate carbon-pricing systems. The European Union is currently considering such a measure, and the Climate Leadership Council (whose members include incoming US Treasury Secretary Janet Yellen) also has advocated it. Economists almost universally favor carbon taxes (Europe’s carbonpricing system is a clumsier version) so that producers and consumers
take account of how their actions affect the global commons. A bordertax adjustment is aimed at prodding developing economies to introduce their own carbon taxes. The policy is conceptually sound, but is too static and difficult to implement. For starters, developing economies have neither the resources nor the technology to transform themselves overnight. Part of the reason advanced economies have been able to mitigate their CO2 emissions is that global manufacturing has migrated to emerging markets that have invested heavily in energy. The average age of coal plants in Asia is 12 years, compared to 43 years in advanced economies. Given that the lifespan of a coal plant is about 50 years, and coal is one of the few natural resources that China and India possess in abundance, the cost to developing Asia of decommissioning its coal plants is huge. And then there is Africa, where the number of people lacking access to electricity has risen during the COVID-19 pandemic, to almost 600 million. The gap between the developing world’s ability to deal with climate change and the ambitious plans being discussed in advanced economies is just another example of the huge disparity in wealth and resources between the Global North and the Global South. In
response to the COVID-19 crisis, for example, advanced economies marshaled fiscal and credit support in 2020 averaging over 16% of GDP, compared to 6% in emerging markets and 2% in developing economies, according to the International Monetary Fund (IMF). And this wide gap does not take into account the potential for pandemic-related debt build-ups to morph into a full-blown developing-country debt crisis over the next couple of years, making decarbonization even more difficult. Global carbon pricing is an essential part of any long-term solution to the climate crisis, but advanced economies need to provide the developing world with a carrot and not just a stick. This should come in the form of highly concessional financing, combined with technical expertise and sharing of best practices – all guided by a World Carbon Bank. The IMF, the World Bank, and regional development banks have an important role to play, but their mandates are too diffuse for them to deal effectively with the climate challenge on their own. Meanwhile, those who think that governmentto-government assistance should not play any role in climate solutions need to bear in mind that stateowned firms, which are not terribly responsive to economic incentives, increasingly dominate the global coal
industry. Is it too optimistic to think that inwardly focused advanced economies will ever be willing to earmark large amounts of aid – at least $100-200 billion per year – to help the developing world meet climate goals? The response to the COVID-19 crisis so far offers little encouragement; the G20’s Debt Service Suspension Initiative has delivered a few billion dollars of relief to 40 very poor countries, but that pales in comparison to the trillions that rich countries have spent on their own citizens. An enhanced carbon tax or pricing regime could be one source of sustainable funding over the longer term, but the problem is too urgent to wait for this to fall into place. The goal of achieving zero net CO2 emissions by 2050, which the EU has adopted and the US is likely to do soon, is praiseworthy. But not-in-my-backyard, or NIMBY, environmentalism is no way to solve a global problem.
Kenneth Rogoff, a former chief economist of the International Monetary Fund, is Professor of Economics and Public Policy at Harvard University. Copyright: Project Syndicate, 2021. www. project-syndicate.org
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IATA frustrated with Canada’s new Covid-19 testing requirement
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he International Air Transport Association (IATA) has expressed frustration with Canada’s new COVID-19 testing requirement for all arriving air travelers due to come into effect on Thursday, January 7, 2021. While the industry for months has been calling for systematic testing to re-open borders without quarantine measures, these pleas have fallen on deaf ears, especially in Canada, the airline association said. The Canadian government, in a short notice decision, is mandating that passengers provide proof of a negative COVID-19 molecular polymerase chain reaction (PCR) test taken within 72 hours (depending on country of departure, testing 96 hours before travel is applicable until 14 January 2021) before planned departure to Canada. This risks stranding travelers in countries where testing is not readily available. Canada already has one the world’s most draconian COVID-19 border control regimes, including travel bans and quarantines. Even though COVID-19 testing is an internationally accepted risk-
mitigation strategy, there are no plans to adjust the current 14-day quarantine rule nor eliminate the temperature checks airlines are required to perform on passengers wishing to travel to Canada. The severe economic consequences of the prolonged border closure are already evident. Latest estimates show that the aviation sector’s direct GDP contribution to Canada’s economy dropped by US$10.39 billion in 2020 vs 2019, placing some 146,000 Canadian jobs at risk. The year-on-year fall in GDP contribution to the wider travel and tourism economy is estimated at US$21.29 billion with some 286,000 jobs at risk. Less measurable, but equally tragic is the impact that these tunnel-vision policies to close Canada off from the world are having on individuals separated from families or those struggling to cope with unemployment. Public health is the top priority. The efforts to contain COVID-19 must take full account of the detrimental impacts that closing borders and discouraging travel is having on the mental wellbeing of Canadians. IATA argues that: “The way
forward is through a wellplanned and coordinated introduction of testing inbound travelers, as a replacement for quarantine measures. At current infection levels, testing travelers will ensure that opening borders will not pose additional risk of contagion in Canada. We challenge the government to prove otherwise. “In the meantime, it is incumbent on the Government of Canada to put this initiative on hold until it has defined: testing requirements and coordinated with the industry to achieve realistic implementation
timelines; and a policy roadmap to safely re-open borders by managing the risk of contagion with testing as a replacement for quarantine measures “We need to start 2021 by taking steps to safely live with COVID-19. What is the point of implementing testing if it does not result in a lifting of border closures nor quarantine requirements? After nine-months of closed borders and confinement, we cannot afford to move in the wrong direction with the disastrous implementation of a counterproductive testing policy.”
FAA announces final rule to facilitate the reintroduction of civil supersonic flight The U.S. Department of Transportation and the Federal Aviation Administration (FAA) has issued a final rule to facilitate the safe development of civil supersonic aircraft. The rule streamlines and clarifies procedures to obtain FAA approval for supersonic flight testing in the United States. “Today’s action is a significant step toward reintroducing civil supersonic flight and demonstrates the Department’s commitment to safe innovation,” said U.S. Transportation Secretary Elaine L. Chao. This rule will help ensure that companies developing these aircraft clearly understand the
process for gaining FAA approval to conduct flight testing, which is a key step in ultimately bringing their products to market. “The FAA supports the new development of supersonic aircraft as long as safety parameters are followed,” said FAA Administrator Steve Dickson. “The testing of supersonic aircraft at Mach 1 will only be conducted following consideration of any impact to the environment.” The Department and the FAA anticipate taking additional regulatory actions to enable the development of supersonic aircraft.
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My Emirates Pass is back to sweeten 2021 with offers across the UAE Emirates is making travel to Dubai even sweeter in 2021 with the return of My Emirates Pass – an exclusive offer that turns the Emirates boarding pass into a membership card giving customers deals and discounts in over 450 restaurants, leisure destinations and retail outlets across UAE. The pass has been extended this year giving customers even more chances to explore UAE for less. Emirates’ customers flying to and through Dubai from 1 January to 30 September 2021 can take advantage of the exclusive offers by simply presenting their Emirates boarding pass and a valid form of identification at any of the participating outlets. Travellers can explore all that the UAE has to offer; from family-friendly activities to shopping sprees and world class dining options. My Emirates Pass gives customers up to 50% off in over 300 restaurants across the country and in over 35 spas in world-class hotels. The Emirates boarding pass also unlocks offers at many tourist attractions including Atlantis Aquaventure and At the Top Burj Khalifa. The
full list of participating outlets can be found here: emirates. com/myemiratespass.* Emirates’ hub Dubai is open for business, fun and tourism and visitors will be spoilt for choice in the family-friendly city with its year-round sunshine, iconic landmarks, and a culinary scene to suit every taste. Emirates’ booking policies offer customers flexibility and confidence to plan their travel. Customers who purchase an Emirates ticket for travel on or before 30 June 2021, can enjoy generous rebooking terms and options, if they have to change their travel
plans. Customers have options to change their travel dates or extend their ticket validity for 2 years. All Emirates customers can travel with confidence and peace of mind with the airline industry’s first, multi-risk travel insurance and COVID-19 cover. This cover is offered by Emirates at no cost to customers, on all tickets purchased on or from 1 December 2020, up until 31 January 2021. In addition to COVID-19 medical cover, this latest offer from Emirates also has provisions for personal accidents during travel, winter sports cov-
er, loss of personal belongings, and trip disruptions due to unexpected air space closure, travel recommendations or advisories, similar to other multi-risk travel insurance products. Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers. (Emirates)
Ethiopian adds Visa Extension Feature on its website Ethiopian Airlines, the leading aviation group in Africa, has upgraded its website enabling tourists to extend their visas online. In an email statement, the airline said: “The new feature allows visitors to apply and secure an extension of their Ethiopian visa. This is good news for our customers who wish to continue their visit to the major attractions of our country without
interruption” The aviation giant has also added new languages for a wider reach of its online e-visa service; the international language options currently available are English, French and Chinese. Extend your visa online and save your time with a contactless experience.
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AviationGhana
JANUARY 7-8, 2021
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