Aviation fuel more expensive in Africa – IATA

Aviation fuel sold in Africa is more costly than the global price, the International Air Transport Association (IATA) has said.

According to IATA, buying aviation fuel in Africa is 21% more expensive than the global average.

It attributed the high cost of aviation fuel on the continent mainly to heavy taxes, many of which are in contravention of the International Civil Aviation Organization (ICAO) principles.

“Buying aviation fuel in Africa is about 21% more expensive than the global average as a result of heavy taxes, many of which are in contravention of ICAO principles,” said Tony Tyler, IATA’s Director General and CEO at the opening of IATA’s Aviation Day Africa held April 16, 2013 in Addis Ababa, Ethiopia.

Mr Tyler said the African aviation industry cannot fulfill its potential if it continues to be weighed down by high costs.

The IATA Boss highlighted the need for African governments to rein in the high costs of fuel and burdensome taxes and charges.

Mr Tyler indicated that IATA is working with airlines in Africa on a campaign for compliance with global standards. “Improvements have been realized in Angola, Uganda and Ghana,” he added.

On taxation, IATA said Africa suffers the impact of onerous direct taxes on tickets.

“We see a combination of ‘solidarity’ taxes, tourism taxes, VAT, and infrastructure development fees, each of which reduces the ability of aviation to drive economic benefits and generate jobs,” Tyler said.

Aviation is a key driver of Africa’s economy and IATA says some 6.7 million African jobs and nearly $68 billion in African GDP are supported by air transport.

Mr Tyler advised African governments that they “must carefully weigh the income generated against lost economic opportunities”.

There should be a joined-up policy framework that is focused on the benefits of connectivity which would grow in a more favorable tax environment, said Tyler.

By Ekow Quandzie