The Air Liberalisation Index as a tool in measuring the impact of South Africa's aviation policy in Africa on air passenger traffic flows

Abstract

In Africa, the Yamoussoukro Decision (YD) to date remains the single most important air transport reform policy, the continent-wide implementation of which remains pending. This study employs the Air Liberalisation Index (ALI), developed by the Word Trade Organisation (WTO) Secretariat, to measure the impact of each of the seven quantifiable market access features of South Africa's aviation policy in Africa on air passenger traffic flows. A fixed one-way panel regression technique was applied to panel data, representing five air transport markets: intra-African, the SADC, East African, West African and North African over two time periods (2000e2010; 2006e2010). The results proved to be significant in three markets, intra-African, the SADC and East African and provide new insights into the relationship between air passenger traffic flows and aviation policy in the South African e intra-African and regional contexts.