SADC’S INFRASTRUCTURE: A REGIONAL PERSPECTIVE Beyond basic connectivity, it is important to evaluate the convenience and velocity of air travel. Most flights that originate from within the SADC countries are direct. The SADC members generally connect with one another by way of a direct flight to Johannesburg and another to their final destination (table 2.11a). The lower velocity of air travel is associated with lengthy travel time (table 2.11b). Flights from Malawi to Zambia and from Zambia to Zimbabwe have relatively low velocities compared with other flights in the region, indicating that passengers on these routes must travel to another destination before arriving at their final destination.

**Table 2.11a Frequency of service**

|Number of fl<br>|ights<br>|
|---|---|
|All<br> <br>|Direct<br>|
|Angola<br>14|14|
|Botswana<br>77|77|
|Congo, Dem. Rep.<br>16|23|
|Lesotho<br>31|31|
|Madagascar<br>17|17|
|Malawi<br>31|35|
|Mauritius<br>27|27|
|Mozambique<br>80|57|
|Namibia<br>53|48|
|Seychelles<br>5|5|
|**_South Africa_**<br>400|400|
|Swaziland<br>48|48|
|Tanzania<br>17|26|
|Zambia<br>138|129|
|Zimbabwe<br>122|107|
|_Source:_Bofinger 2009.||

A recent assessment of progress toward implementing the Namibia 53 Yamassoukro Decision ranks the SADC behind other regions of Seychelles 5 Africa, in particular West Africa (table 2.12). The indicator used **_South Africa_** 400 to measure the degree of progress is the percentage of flights Swaziland 48 flown under fifth-freedom arrangements (that is, by carriers that Tanzania 17 are not registered either in the origin or destination country). The Zambia 138 low prevalence of fifth-freedom flights in the region is precisely a Zimbabwe 122 reflection of the existence of a strong hub-and-spoke system based around a large carrier: South African Airlines. The emergence of _Source:_ Bofinger 2009. strong hub airlines limits the scope for fifth-freedom flights. The low rating can be attributed to the presence of powerful airlines that are able to negotiate bilateral contracts in their own best interests rather than following regional initiatives. The SADC has not made significant progress toward instituting free pricing, lifting capacity and frequency restraints, and allowing airlines to fly so-called fifth-freedom routes.

There is ample evidence that southern Africa benefits from liberalization. For example, liberalizing the domestic market in South Africa in 1990 fueled passenger growth by 80 percent between 1994 and 2004 and eventually led to the establishment of domestic low-cost carriers. On the Johannesburg-Lusaka route for which South African Airways was the only carrier, designating a low-cost carrier, Kulula, as the Zambian carrier reduced fares by 33–38 percent and increased passengers by 38 percent.

Simulations also suggest that full liberalization of the air transport market in the SADC would have a significant impact. Airline fares would be reduced by 18–40 percent if a low-cost carrier were to enter the market and increase traffic volumes by 20 percent. Another half a million tourists would arrive by air each year, spending over $500 million. This multiplier effect would increase the SADC’s GDP by approximately $1.5 billion or 0.5 percent.

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