Minister Joël Morgan’s response to Today’s article on Transaero Airline-Unfair portrayal of Seychelles’ decision |19 August 2011

Home Affairs, Environment, Transport and Energy Minister Joël Morgan said this in a press release sent to Seychelles Nation yesterday.

Minister Morgan wrote that the article in Today makes reference to an editorial by the Seychelles Hospitality and Tourism Association (SHTA) in which its chairman Louis D’Offay criticises the decision taken by the department of transport and energy on the landing rights being requested by Transaero which they are saying have resulted in the loss of an air link.
 
The article also infers that the tourism industry is being affected by uncoordinated decisions from both the department of transport and energy and that of tourism.

The minister points out that the statement is not correct as major decisions which will have an impact on key sectors of the economy are the subject of internal consultations between the departments of transport and tourism, including the Seychelles Civil Aviation Authority (SCAA), Air Seychelles and STB before a decision was taken.

The minister points out that since their initial request for landing rights in early 2008 for routing from Moscow to Seychelles to Mauritius, Transaero requested for fifth freedom rights from Seychelles to Mauritius and vice versa. However, the SCAA informed them that under the bilateral air services agreement signed between the Russian Federation and Seychelles, they can only avail themselves of the existing third and fourth freedom traffic rights to operate a direct flight between Moscow and Seychelles. The agreement did not provide for fifth freedom operation and therefore it was not possible for Transaero Airlines to carry commercial traffic between Seychelles and Mauritius vice versa as requested. Fifth Freedom air operation is the right or privilege, in respect of scheduled international air services, which is granted by one state to another, to put down and to take on, in the territory of the first state, traffic coming from or destined to a third state. It is also known as a Fifth Freedom Right.

The minister further said that the SCAA however did inform Transaero that under the agreement, the two countries had agreed that “if the designated airline of either contracting party wishes to exercise fifth freedom rights on any or all parts of the route schedule, the conditions under which such rights are given shall be discussed between the two designated airlines.”

On this basis, the SCAA invited Transaero Airlines to launch talks with local airline Air Seychelles with the aim of evaluating opportunities of cooperation. Transaero informed that they will not pursue any discussions with Air Seychelles until the government was agreeable to give them fifth freedom traffic rights operations.

They were also invited to operate to Seychelles as a stopover point where it would have been possible for the airline to disembark Russian visitors in Seychelles and then proceed to Mauritius (without embarking any other passengers destined for Mauritius) and on its return leg stopover in Seychelles to embark Russian visitors and other passengers destined to Moscow but they did not agree to this. They were also, on several occasions, encouraged by the SCAA to evaluate the possibility of a direct flight between Moscow and Seychelles but they were also not agreeable to this.

In its technical term, an ‘open skies’ policy does not mean full liberalisation of all air traffic rights. Many countries with ‘open skies’ policies including the US and many EU member states, still restrict liberalisation of traffic rights.

Open skies policy also means liberalisation of weekly frequencies that an airline can operate and the capacity in terms of number of passengers, aircraft type etc. Transaero Airlines have available flexibilities to operate to Seychelles with up to seven flights per week.

The air transport sector today remains one of the most regulated sectors in the world because of the high importance that the global community places on safe and secure air transportation. An ‘open skies’ policy therefore does not mean unlimited/unrestricted access for airlines flying to Seychelles and onwards to second destinations from Seychelles.

The minister also stated that we have a responsibility to our national air carrier, Air Seychelles, to ensure its continued commercial viability in the face of very strong international competition. Air Seychelles carries around 51% of all passengers coming to Seychelles by air and provides a vital link for our tourism industry in terms of air traffic rights and market access to Europe, Africa, Asia and the region.