Africa: IATA wonders why Aviation Fuel in Africa is twice the global price,

International Air Transport Association, IATA, vice president, Africa, Raphael Kuuchi said Nigerian government and indeed their counterparts in Africa are killing aviation industry with the very high cost of aviation fuel, otherwise known as Jet A1.

He said plans are already in motion to engage the governments to see how aviation could be utilised for economic development. “We are 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. “In oil producing countries, aviation fuel is mostly expensive. We are asking governments to review these taxes.”
“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,” he said.

Meanwhile, the global air transport body and the African Union Commission, AU, have signed a Memorandum of Understanding, MoU, to expand strategic cooperation on air transport in Africa.
Specifically, the partnership aims to further the continent’s economic and social development with the benefits of safe, efficient and sustainable air transport in the region.

The MoU was signed by the IATA’s Director General, Tony Tyler, and AU’s Commissioner for Infrastructure and Energy, Dr. Elham Mahmoud Ahmed Ibrahim.

The agreement focuses on the exchange of information, expertise and capabilities in a number of areas including: enhancing security through intelligence-driven, risk-based measures and enhancing safety.

Other focuses are reducing accident rates in line with global levels of performance; promoting connectivity; facilitating collaborative decision making in air traffic management and improving the passenger experience through the deployment of IATA’s Fast Travel Programme – a suite of projects designed to give passengers more control over their journey through a range of self-service options.
Tyler said: “Africa is set to be one of the fastest-growing aviation regions with five per cent annual growth forecast over the next 20 years. Achieving this potential will not happen by chance; strong partnerships are key.

“This MoU will help ensure that global standards and best practices form the backbone of Africa’s growth as well as position the continent’s 54 nations to promote economic and social development by unleashing the full power of aviation. I congratulate Dr. Ibrahim for her leadership, vision and foresight in driving aviation development in Africa,” said Tyler.

Ibrahim, on his part said that IATA was a strategic partner in the growth of African aviation, adding that the MoU would commit the two organisations to even closer cooperation on the priorities for African aviation. “In particular, we count on IATA to partner with us by providing the requisite technical support in the establishment of the Single African Air Transport Market as part of our long-term vision in the context of the AU Agenda 2063. We are, indeed, dedicated to global best practice as a fundamental for sustained growth in aviation in Africa,” Ibrahim said.

The MoU paves the way for further development in African aviation. The industry already supports 6.8 million jobs and generates $72.5 billion of economic activity on the continent.

Source: globalbusinessedge.org.ng

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