Cheaper flights, 155,000 jobs, and R24 billion on the table for South Africa

In a written letter to Minister of Transport Barbara Creecy, the City of Cape Town’s Mayoral Committee Member for Economic Growth, James Vos, urged government to implement an Open Skies Policy in South Africa.

An Open Skies Policy (OSP) removes certain restrictions on air routes, capacity, pricing, and market access, enabling airlines to operate more freely and competitively.

The benefits of such an initiative, according to Vos, comprise lower airfares, increased connectivity, and more opportunities for businesses and travellers.

“This is not just about aviation – it’s about unlocking economic growth, tourism, and trade opportunities for Cape Town and South Africa,” said Vos.

An OSP has been adopted in various regions around the globe, including Canada, the European Union, Israel, and the United States.

Breaking down barriers

South Africa is a signatory to both the Yamoussoukro Decision and the Single African Air Transport Market.

These agreements provide for the liberalisation of scheduled and non-scheduled air transport services within Africa and aims to remove restrictions on traffic rights, capacity, and frequency between city pairs.

“However, despite these commitments, bureaucratic and protectionist barriers continue to limit our airspace’s full potential,” said Vos.

“The demand for air travel to Cape Town speaks for itself – Cape Town International Airport has exceeded its 2024 passenger target by 125%. This proves that our city is a leading aviation hub. But, without a fully liberalised air transport framework, we are holding back investment, tourism, and job creation.”

The International Air Transport Association estimates that air liberalisation could create as many as 155,000 new jobs and contribute over R24 billion to South Africa’s GDP annually.

“Additionally, with every 12 international arrivals supporting one job in tourism, making flights more accessible means more opportunities for South Africans,” said Vos.

The City of Cape Town has thus called on government to take the following actions:

• Accelerate air access rights and bilateral agreements in Africa
• Strengthen competition regulations for fairer and more affordable air travel
• Introduce phased rights to key markets to stimulate competition and connectivity
• Rapidly scale up infrastructure investment to expand capacity and efficiency at key airports

Vos has been actively engaging with global airlines and stakeholders to attract more flights, with the OSP being critical to furthering this work, he said.

“I remain committed to working with partners to make this vision a reality because a more connected Cape Town means a stronger economy for all,” concluded Vos.