formed with financing from the Aga Khan Foundation. Traffic has grown significantly from a low of just under 1 million seats per year in 2004 to around 2.5 million seats estimated for 2009 (figure 12a). Connectivity has also recovered from around 10 city pairs in 2004 to some 20 city pairs estimated for 2009 (figure 12b). Uganda’s policy decisions have led to a healthy increase in international traffic volume, and present a case study on the positive impact of liberalization. Not only are outside carriers willing to service the country, outside investors are also willing to establish a regional carrier registered in Uganda. Since Uganda, like its neighbors Rwanda and Burundi, is a relatively small country, domestic service is minimal.

_Uganda’s airport infrastructure is also in reasonably good shape._ As part of the Commonwealth meetings of heads of states in Kampala in 2007, a modern radar system was purchased for air traffic control, updating a virtually uncontrolled airport to more modern surveillance.

**Table 6. Benchmarking air transport indicators for Uganda and selected other countries, 2007**<sup>**2**</sup>

|**Country**|**Uganda**|Tanzania|Rwanda|Burundi|Kenya|South<br>Africa|
|---|---|---|---|---|---|---|
|**Traffic**|||||||
|Domestic seats (seats per year)|**70,980**|1,871,255|n.a.|n.a.|2,093,416|31,767,537|
|Seats for international travel within Africa (seats per year)|**978,337**|1,237,153|467,203|263,363|3,144,782|6,314,557|
|Seats for intercontinental travel (seats per year)|**493,740**|585,763|18,304|6,864|2,755,352|7,707,063|
|Seats available per capita|**0.050**|0.093|0.050|0.032|0.210|0.954|
|Herfindahl-Hirschmann Index—air transport market (%)|**17.19**|9.75|32.63|28.42|39.47|16.66|
|**Quality**|||||||
|Percent of seat-km in newer aircraft|**73.2.**|79.3|95.8|87.3|80.2|83.8|
|Percent of seat-km in medium or smaller aircraft|**27.9**|48.6|72.0|64.5|20.8|32.8|
|Percent of carriers passing IATA/IOSA Audit|**0**|33|0|0|11.1|33.3|
|FAA/IASA Audit Status|**No audit**|No audit|No audit|0|Failed|Passed|

_Source:_ Bofinger 2009Derived from AICD national database (www.infrastructureafrica.org/aicd/tools/data). n.a. = Not applicable. _Note:_ The Herfindhal-Hirschmann Index (HHI) is a commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. A HHI of 100 indicates the market is a monopoly; the lower the HHI, the more diluted the market power exerted by one company/agent.

FAA = U.S. Federal Aviation Administration; IASA = International Aviation Safety Assessment; IATA = International Air Transport Association; IOSA = IATA International Safety Audit.

Uganda has benefited significantly from the increased air transport activity in East Africa, which is served by some of the leading air carriers in the continent. Uganda has benefited from its proximity to Kenya and Ethiopia and the strong regional airlines and regional hubs that have emerged in those

> **2** All data as of 2007 based on estimations and computations of scheduled advertised seats, as published by the Diio SRS Analyzer. This captures 98 percent of worldwide traffic, but a higher percentage of African traffic is not captured by these data **[[clarify this last clause]].**

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