Africa: high taxes pose a challenge for Airlines | Infrastructure news

According to the Africa Airlines Association (AFRAA), one of the biggest challenges faced by African airlines and the reason for the collapse of certain carriers is the high rate of taxes paid to government.

Secretary General of AFRAA, Elijah Chingosho, said that African airlines may not take advantage of the ever growing passenger market in the region if their respective governments do not assist in growing the airlines to become big operators.

Speaking at the 18th Aviation and Allied Business Conference held recently in Windhoek, Namibia, Chingosho noted that the high taxes imposed on these airlines was holding back their development.  The taxes need to be lowered so that these airlines can reach their full potential and operate as mega carriers such as certain airlines in Europe and the Unites States.

“There is also the need to reduce the cost of fuel. Airports should levy charges commensurate with the services provided and fees and charges ought to be set on a consultative basis with stakeholders,” he said.

It was also stated that certain service providers to the airports have a monopoly which allows them to set their prices at will. The high prices set by monopolising companies can lead to airlines shutting their doors.

“But if there were more service providers, users will have flexibility to choose service providers that deliver value for money,” said Chingosho.

Over the years, foreign airlines have dominated the African air passenger market because the local carriers cannot compete because of lack of capacity and also lack of finances, which could be facilitated by government’s commitment to the aviation industry.

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