Costs and Benefits of ‘Open Skies’ in the East African Community

This analysis found evidence that liberalisation leads to 9% lower average fares and a 41% increase in frequencies

Abstract

A substantial body of research has repeatedly found that liberalisation has led to increased traffic volumes, greater connectivity and choice and lower fares. Furthermore, the benefits of air service liberalisation extend well beyond the aviation industry and passengers. It contributes to greater trade and tourism, inward investment, productivity growth, increased employment and economic development.

Quantitative analysis, based on data from East Africa, provided robust and compelling evidence that liberalisation leads to 9% lower average fares and a 41% increase in frequencies, which in turn stimulate passenger demand. It is estimated that liberalisation between the 5 East African Community (EAC) countries could result in an additional 46,320 jobs and US$ 202.1 Million per annum in GDP.

As well as a final report, there is a 3 page briefing note which summaries the findings.

This research was supported by the Department for International Development’s Strengthening Research Systems for Poverty Reduction in East Africa programme

Citation

InterVISTAS Consulting. Costs and Benefits of ‘Open Skies’ in the East African Community. InterVISTAS Consulting (2017), 117p.

Links

Published 23 June 2017