Review airport charges, IATA urges African govts

The International Air Transport Association (IATA) has called on African governments to review their airport taxes and charges to attract more airlines into the continent.
It said airport charges and taxes in Africa were the highest in the world.
In an online interview with The Nation, IATA’s Vice President, Africa, Mr Raphael Kuuchi, said a reduction of the charges would attract more players into sector, create jobs and enhance its contribution to the Gross Domestic Product (GDP) of the countries.
Kuuchi said an IATA study of 12 African countries two years ago showed that a downward review of the charges could create about 155,000 additional jobs in the countries surveyed, and add $1.3billion to the GDP of 12 countries.
He said it was for these reasons that IATA engaged some African governements for a review.
He listed the charges to include: ground rent, landing and parking fees, service recovery charge, navigation charges, fuel surcharge; adding that there was the need to review the levy on aviation fuel, which has a negative impact on airlines’ operating costs.
He said the price of aviation fuel is higher in Africa – above the global average of $1.3, adding that it is between $2 and $3.7, more than twice the global average.
Kuuchi noted that some African governments were raising revenues from their aviation sector through charges, advising them to imbibe the model in the developed world, where governments were building new airports to accelerate the growth of air transportation.
Kuuchi said: “It is actually to let African governments realise that aviation is not a preserve of the rich or famous or those who can afford it. It is for this reason that two years ago in 2014, we did the study on the benefits of aviation.
“We did a study on the benefit of aviation in Africa and we selected 12 countries, three from Southern African region. The outcome of that study indicated that 155,000 jobs would be created and $1.3 billion will be added to the Gross Domestic Products of the 12 countries’ economies.
“Five million passengers who are not able to travel by air will be able to because of increased competition.
“This would bring down airfares by up to 35 per cent. This was a significant diversion from the previous mentality that air travel is for those who can afford it.
“Governments will see the benefits in terms of employment generation, in terms of GDP contribution and in terms of business facilitation. We use this as a tool to engage with governments by asking them ‘why are you over taxing aviation instead of making it more competitive.”
He spoke of plans to engage the governments to see how aviation could be utilised for economic development.
He said: “We have been engaging with governments, especially in countries where taxes are higher. Today, fuel prices globally average per litre is $1.3. In Africa, it ranges between $2 and $3.77. In some places, more than twice what it is globally.
“On the average, we notice that fuel price is 21 per cent more expensive in Africa than the world average. In addition to that, we brought these taxes together. Africa is not a rich continent and we ask, why must we be paying the most? “
He said it was unacceptable that aviation fuel price is higher in oil producing country like Nigeria.
Kuuchi said: “In oil producing countries, aviation fuel is mostly expensive.
“We are asking governments to review these taxes.”
He continued: “If you reduce airport taxes or charges, you tend to attract a lot more passenger traffic. More airlines would find it more competitive to come. In the case of Africa, I always tell the airport operators. One thing we do is that we forget that airports next door are competing against each order.
“If Johannesburg Airport becomes too expensive, I would rather operate to another airport. We need to be careful to make our airports attractive. If they are attractive, many airlines would come in.
“If the cost of flying there is cheaper, many airlines will come;

The Nation