Aviation Industry Raises Concerns Over Proposed Limits On Foreign Carrier Rights

The warnings follow the release of the Department of Transport’s (DoT) Draft Comprehensive Civil Aviation Policy, which proposes restricting stopover rights for foreign carriers and prioritising South African-registered airlines in the international air transport market.

Aviation economist and chartered accountant Joachim Vermooten has described the proposals as “protectionist”, cautioning that they could isolate South Africa from global aviation partners and negatively affect tourism and trade, both of which depend heavily on international air connectivity.

Controversial policy shift

In the draft policy, the DoT states that the proposed amendments are intended to protect the domestic aviation market and South African-registered carriers.

One of the key objectives is to give preference to local airlines in the international air transport sector by preventing international airlines from obtaining stopover rights and withdrawing stopover rights already granted through bilateral air service agreements.

Vermooten argues that prioritising South African airlines in this manner is inconsistent with the country’s commitments under the International Civil Aviation Organization’s (ICAO) Chicago Convention.

“Such an approach could lead to international disputes with other states and ultimately expulsion from the ICAO system,” he warned, noting that the convention requires governments to treat carriers fairly, with equal opportunity and market access.

International connectivity essential to travel

ICAO’s objectives emphasise providing travellers with more affordable and diverse air travel options by lowering costs, increasing competitiveness and strengthening air connectivity.

Vermooten claims the draft policy includes measures aimed at protecting the national carrier and said that, historically, excessive focus on state-owned airline interests has limited capacity growth by foreign carriers and increased prices on existing routes.

“These all act as barriers to travel and tourism growth and reduce economic development,” he said.

A reversal of deregulation?

Vermooten also expressed concern that the draft policy represents a shift away from South Africa’s long-standing deregulated domestic aviation framework and more liberal international aviation approach.

“The domestic air transport policy was deregulated in 1990. Nowhere previously have deregulated domestic markets been reversed to regulated markets,” he said.

While government has full authority over domestic aviation policy, he added that international aviation policy requires consultation and negotiation with other states through bilateral agreements.

Placing protection of the state-owned national carrier at the centre of policy-making, Vermooten warned, would reduce competition and restrict airline activity.

“This would be reminiscent of systems that existed from 1936 to 1990 and 1949 to 1993, effectively reversing economic deregulation of domestic air transport policy and liberalisation of international air transport.”

Industry calls for balance

The DoT has extended the deadline for industry stakeholders to submit comments on the draft policy from June to July 2025. However, it has not indicated when a revised draft may be published or when implementation could occur.

Airlines Association of Southern Africa (AASA) CEO Aaron Munetsi said the policy requires further refinement.

“The Draft Civil Aviation Policy needs to be fine-tuned to balance national interests with global competitiveness, enhancing connectivity not only within South Africa but across the continent and beyond,” he said.

The Board of Airline Representatives of Southern Africa CEO George Mothema told Travel News that elements of the policy could create uncertainty and weaken the competitive balance in South African airspace.

“International airlines play a vital role in driving tourism, enabling trade and supporting jobs across South Africa’s aviation and hospitality value chains,” Mothema said.