In a rapidly evolving global aviation landscape, understanding the impact of taxes, fees, and charges on African airlines is critical for ensuring the sector’s sustainable growth and competitiveness.
This AFRAA study on taxes, fees, and charges is crucial to policy makers, regulators and industry stakeholders in assessing the impact on the aviation sector’s growth and competitiveness. The study reviews in detail the level of taxes, charges and fees collected on air tickets and paid by the final passengers, in each African country, highlighting the differences between Intra and inter-regional travel. The study also entails a comparison with two neighboring regions: Europe and the Middle East. Findings from the study will help policymakers and industry stakeholders in fostering a more favorable regulatory environment, boosting connectivity, and supporting economic development through better air travel infrastructure and services across Africa.
AFRAA Advocacy on Taxes, Fees, and Charges for better skies
AFRAA has always led the charge in advocating for the reduction of excess taxes, charges and fees on both passengers/cargo and airlines. This is recognizing their direct impact on overall ticket cost and travel demand. For air, transport to grow and act as key economic stimuli cost of operations must come down and travel must be affordable across Africa and beyond. On its own, and in partnership with other stakeholder organizations, AFRAA continue to engage various advocacy tools and strategies to reduce taxes and ensure charges and fees are commensurate with the level of services provided. AFRAA advocacy is based on a four-pillar approach aimed at reduction of taxes, fees, and charges; ensuring competitive environment (avoid monopoly) and checking the involvement and activities of the private sector in managing and providing services at airports. Ultimately, AFRAA aims through advocacy to realize a competitive air transport industry boost traffic growth and increase the market share of African airlines. The four advocacy pillars hitched on:
• Adherence to the ICAO prescribed engagement process before implementing new/revised taxes, fees, and charges (ICAO Doc 8632 and Doc 9082).
• Reduction of existing high taxes, fees, and charges on air operators and passengers in identified countries.
• Monitoring and ensuring that private sector participation in airport services delivery results in quality service at competitive rates/.
• Implementation of the Aviation Sustainability Laboratory initiatives on taxes and charges.
AFRAA’s commitment to addressing high taxes, fees, and charges in African aviation is crucial for the industry’s sustainable growth and competitiveness. Through comprehensive studies and targeted advocacy, we aim to foster a more equitable regulatory environment that benefits airlines and passengers alike.
