• Regulation may address concerns: Authority
ADDIS ABABA – The long-time concern of private aviation operators to expand their businesses has not been addressed in the amended civil aviation law, The Ethiopian Herald learned.
The Authority, for its part, told this reporter as details of investment sectors protected to the government, nationals, as well as those areas open to foreign participation and a foreign partnership, will be decided by a regulation the Council of Ministers may issue.
According to the operators, they cannot create a joint venture with foreign investors as the sector is open only to nationals. Another limiting factor, as operators indicated, is the number of seats of aircraft they could use which is 50.
The issues of lifting seat restriction had been a hotbed of debate among sector’s stakeholders during the draft stage of the law as it proposed to even reduce seats to twenty, Authority’s Law Service Head Ali Mohammed told The Ethiopian Herald.
But the ratified law has remained mute about the issue of seats. It neither details about foreign participation in the sector and joint venturing, he added. “This is an issue that will be addressed in an investment regulation the Council of Minister may provide”
The reason for the amendment of the law was to bridge gaps identified by International Civil Aviation Organization (ICAO) and to reorganize the Ethiopian Civil Aviation Authority; enhance the enforcement capacity of the Authority, among others, he elaborated.
In his previous interview with The Ethiopian Herald, Deputy Chief Executive Officer of National Airways, Gezahegn Biru said that back in the day aircrafts’ seats were limited to twenty; later the number has been raised to fifty.
The number of seats is a very important factor in determining the fares of transport services, which is essential for competition, he said, adding that it is very difficult to compete and stand profitable with the current number of seats for scheduled commercial flights.
Banks do not have the interest and capacity to meet the financial demands of most private airlines, he said, adding that foreign investors need to be allowed to work in partnership with domestic investors in the aviation sector.
Managing Director of Abyssinian Flight Services, Captain Solomon Gizaw also told this reporter that there are several challenges in the sector including lack of government’s attention, facility, loan service, apart from a lack of enabling aviation policy.
The Ethiopian Herald February 14/2020
BY ABDUREZAK MOHAMMED
