Sky-high taxes will down African aviation

The African Airlines’ Association says the continent’s airlines are struggling with high taxes and charges, particularly levies on fuel.



This has made it difficult for African carriers to charge cheaper fares. Instead, Gulf, European and Middle Eastern carriers have moved into the breach, taking the lion’s share of Africa’s air traffic business.

AFRAA says the foreign carriers have subsidised fares, non-interest loans, grants and other major support.

Any benefits Africa might hope to reap from the global fall in oil prices have been cancelled out by high taxes and charges as well as a strong US dollar.

National carrier Kenya Airways is among the hardest-hit African airlines, as 37 per cent of its fuel costs go to taxes and levies.

Sky-high fuel taxes and other levies are going to ground Africa’s airlines sooner rather than later.

The government – and other African governments – needs to move swiftly and forego the kind of revenue that stunts growth in certain key sectors, aviation being one of them. They should instead endeavor to spur growth.

It makes no sense to pit African airlines against a competition that is so heavily subsidizsed and otherwise protected. The very notion of competitiveness itself is at risk.

African carriers too need all the government support they can get to achieve a level playing field – even at 30,000 feet.

(Culled from thestar.co.ke)