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African Airlines Association Warns of High Taxes

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 1 September 2019.

Published on September 1, 2019, African Airlines Association (AFRAA) Secretary General Abdérahmane Berthé has emphasized the need for an interconnected Africa to boost intra-African connectivity, trade, and tourism. This would create economies of scale that would benefit the industry and allow African carriers to dominate African skies.

Speaking in Angola's capital, Luanda, during a meeting with TAAG Angola Airlines Chief Executive Officer (CEO) Mr Rui Curreira, Mr Berthé highlighted the negative effect of excessive taxes, charges, surcharges, and fees on the sustainability of African airlines. He noted that high taxes and charges make African airlines less competitive due to their significant impact on the financial performance of airlines operating in a high-cost environment.

Mr Berthé also pointed out that fuel alone accounts for 30-40 per cent of airlines' operating costs in Africa, a problem exacerbated by numerous instances of opacity on fuel pricing. He emphasized that the International Civil Aviation Organisation (ICAO) principles regarding user charges and the foundation set in the Chicago Convention should be strictly adhered to by relevant authorities.

AFRAA plans to implement its Action Plan to transform the industry and promote positive economic progress across the continent. The association will also support its members through the AFRAA Consultancy Unit, which will provide utility-oriented studies to airlines and stakeholders, undertake macro-econometric modelling, and forecasting of the aviation industry.

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