This follows Uganda’s move to give EAC routes to airlines from outside the bloc. The right for airlines to fly routes from one country to another is called the Fifth Right, but EAC members have been slow to embrace it, resulting in fewer flights between them and higher air travel and cargo costs.

A recent report by African Development Bank (AfDB) says the region’s aviation sector features extremely high fares caused by national airlines monopolising routes.

The report says that it is three times more expensive to fly from Nairobi to Entebbe than from Nairobi to Dubai, if one considers the distance.

According to the study, a flight between Nairobi and Entebbe costs between $295 (Sh26,550) and $390 (Sh35,100), whereas flying from Nairobi to Dubai (seven times as far) costs about $600 (Sh54,000).

The AfDB study found that taxes comprise 62 per cent of the total cost of air tickets within East Africa, while a Kenya Airways ticket from Nairobi to Dubai includes 41 per cent taxes.

Uganda has been increasing routes operated by foreign airlines following the withdrawal of Air Uganda’s licence by the Ugandan Civil Aviation Authority in June last year. As a result, RwandAir was granted the Fifth Right by Uganda to fly from Entebbe to Juba.

However, after being granted similar rights to fly from Entebbe to Nairobi, flights were stalled by lack of approvals from Kenya Civil Aviation Authority (KCAA).

Against this backdrop, and with Tanzania now threatening retaliation against KCAA’s refusal of approvals, the Northern Corridor Integration Project Summit held in Nairobi in December is now working on a memorandum of understanding between members states, which it plans to finalise by February.

The pact is set to do away with national airlines monopolising routes brought about by member states’ reluctance to allow other airlines to fly routes except to and from their own nations.

It will also help airlines such as FastJet to commence regional operations hence bringing more players into the market. This will lead to increased competition and eventually more affordable fares.

Demand for services

The MoU, signed by Uganda, Rwanda and South Sudan, is expected to be signed by Kenya. It also covers the harmonisation of procedures, infrastructure and operational activities such as air navigation services.

It is also expected to do away with regional airline rivalry which, for instance, led to the barring of Air Rwanda from picking passengers at Moi International Airport in Mombasa on its way to Juba.

This gave Kenya Airways a chance to dominate the local market and inflate fares due to high demand for its services. If the Fifth Right becomes operational, it will help cut regional airfares.