Latest news with #AfricanAirlinesAssociation
Zawya
2 days ago
- Business
- Zawya
EAC's plan to ease cost of air travel
High taxes, fees and charges on airlines in Africa have been cited among the measures keeping air transport development on the continent aground. Air transport in Africa is still considered a luxury service, as governments tend to overtax the supply chain, leading to excessive service charges for the airlines. According to African Airlines Association (Afraa), the average amount of passenger's paid taxes and fees applied to air tickets is twice as expensive in Africa than in Europe and the Middle East. According to a study by Predictive Mobility, the elasticity price/demand for air transport within Africa vary from -2.34percent to -3.15 percent, meaning that a reduction of 10 percent on the ticket price can increase demand at continental level, from 22.3 to 30.1 million passengers annually. Thus, the reduction of taxes and charges can allow a significant stimulation of demand on the continent, help airlines to become more competitive against foreign operators, who are based in regions where the taxation is comparatively lower. Taxes vary within the region but, on average, constitute 25-30 percent of the ticket. For example, fares on Entebbe-Nairobi fluctuate between $300 and $350. Taxes on the route constitute about $100 for a return ticket. In East Africa, taxes and fees paid by passengers on regional departure in airports are: Kinshasa at $77.5, Entebbe ($57.2), Dar es Salaam ($54), Nairobi ($50), Mogadishu ($42), Bujumbura ($40) and Addis Ababa ($31). According to Afraa, Central and Western Africa have the best regional taxes policy, as they allow passengers to save on average $12.68 and $10.12 respectively. The initiative has been in development since 2006, with lobbies and businesses pushing for lower airfares, increased connectivity to ease travel and cargo transportation. Drafting of the framework has been ongoing under the Sectoral Council on Transport, Communications and Meteorology (SC-TCM). A report by the 18th meeting of the Sectoral Council shows efforts to domesticate the East African air space. Draft regulations for air transport market liberalisation have provided for aviation freedoms up to the fourth. But stakeholders are demanding that the region expedite the Fifth Freedom. The Fifth Freedom is the right of an airline to carry passengers and cargo between two foreign countries, as long as the flight originates or terminates in the airline's home country. The EAC draft regulations awaiting signatures from partner States allow regional air operators to 'exercise the services referred to as the first, second, third, fourth and fifth freedoms of the air within the community.''Partner states may, at their discretion, grant each other any other rights beyond the Fifth Freedom of the air,' the draft days. EAC Council of Ministers chairperson Beatrice Askul told The EastAfrican that the region was making good progress on the issue of air liberalisation.'The issue is part of our agenda as the council. We are making a lot of progress. ...there are specific ministries including Transport, Communication and Infrastructure, which are directly dealing with the liberalisation and the domestication of the EAC airspace,' she said.'Communication and consultation are still within that level of specific ministries consultation. After that, they will forward recommendations to the council to adopt, when they have all agreed on give and take.' Partner states will subsequently negotiate their regional air transport bilateral arrangements under the Multilateral Air Services Agreement,' said Ariik during the 19th Meeting of Directors General of Civil Aviation and Airports Authorities. But the partners have been reluctant to implement the Fifth Freedom, slowing down the efforts.'EAC members have been reluctant to liberalise their air services because they want to protect their airlines. Partner States think some of the routes are strategic for their national carriers so they are limiting full liberalisation on the Fifth Freedom,' said Adrian Njau, acting chief executive of the East African Business Council (EABC).'The Fouth Freedom -- the right to fly from one's own country to another -- is currently on, but it is not enough.'The freedoms of the air are international commercial aviation agreements, under the International Civil Aviation Organisation (ICAO) granting a country's airlines the privilege to enter and land in another country's airspace.'We want the EAC to grant the Fifth Freedom,' Mr Njau insists. Without an open skies regime in place, the EAC partner states have been relying on bilateral air services agreements to operate, presenting challenges of concluding multiple negotiations between several countries.'As a region we need to do away with bilateral agreements on air travel among EAC partner states because bilateral agreements are very restrictive. We want to make air travel domestic for EAC,' the EABC boss said. Part of the reason why air travel is expensive and cumbersome within the EAC and the rest of Africa is failure by countries to ratify and implement the Single African Air Transport Market (SAATM). Currently, Kenya, Rwanda, and the Democratic Republic of Congo are the only EAC countries that have fully joined the SAATM. Authorities in Kampala indicated that Uganda would join in this financial year.'We are left with approval by the Cabinet. Once that is done, we will be good to go,' said Fred Bamwesigye, director-general of Uganda Civil Aviation Authority at a meeting in Kampala early this year. To date, 34 countries have signed up to the SAATM representing over 80 percent of the existing aviation market in Africa. Even though the EAC concluded the regulations that would streamline the aviation industry, boost trade, promote tourism, and improve global connectivity, transport costs remain some of the highest in Africa.'We pay $3,000 for delegates for DRC (to fly from Kinshasa to Arusha), for instance, and less than $1000 to fly to Europe,' said Kennedy Mukulia, chairperson of the Committee on Legal, Rules and Privileges within the East African Legislative Assembly. Inside the regulations, plans are also underway to reduce fares.'The cost of airfare in the region needs to be addressed,' said Ariik. 'There is therefore a need to look into the possibility of harmonising the current regulatory fees and charges under the spirit of the EAC CMP and to consider and designate the EAC air transport market as domestic for EAC-registered operators and apply charges applicable to domestic parties and eventually lower passenger tariffs.'But a study by Africa Airlines Association in 2024, shows that airline passengers pay on average 3.5 different taxes, charges and fees for international departures, representing an average amount of $68. Taxes and fees generally represent more than 55 percent of airlines' most affordable base fares, and more than 35 percent of total ticket price. Given the low purchasing power in Africa, it is urgent to assess the issue of taxes. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Morocco World
09-07-2025
- Business
- Morocco World
Report: Morocco Is One of Africa's Most Affordable Countries for Airfare Taxes
A new report by the African Airlines Association (AFRAA) places Morocco among the top ten African countries with the lowest taxes and charges on international and regional flights. According to the AFRAA Taxes and Charges Study Review 2024, passengers departing from Morocco on international flights pay an average of $25.1 in taxes and fees, making it the 8th most affordable country on the continent in this category. When it comes to regional air travel, Morocco ranks even higher. With an average cost of $18.7 per ticket, the country stands in 6th place among the least expensive African states for intra-continental journeys. In a continent where costly air travel continues to hinder regional mobility and integration, Morocco's position reflects a policy orientation aimed at reducing barriers to movement. Alongside countries such as Libya, Malawi, Lesotho, Algeria, Eswatini, and Tunisia, Morocco belongs to a small group of African nations that have kept travel-related costs within accessible margins for the average passenger. The picture is more complex elsewhere. Travelers departing from Gabon, Sierra Leone, Nigeria, Djibouti, or Niger face some of the highest aviation taxes on the continent. For regional flights , countries such as Sierra Leone, Gabon, and Benin top the list with the highest fees, while the Democratic Republic of Congo and Guinea also feature among the most expensive destinations for short-haul African travel. AFRAA's findings arrive at a moment of reflection for the African aviation industry. Beyond listing figures, the association stresses the need to overhaul the current system of taxes, charges, and regulatory frameworks that continue to weigh down the sector. The report recommends that African states prioritize cooperation through bilateral and multilateral agreements that encourage fair competition and better connectivity. It also calls for improved collaboration among African airlines and a push to modernize airport infrastructure across the continent. By keeping costs low, Morocco aligns itself with these wider goals. Its position in the rankings suggests a strategic effort to foster cross-border movement and promote the country as a reliable gateway between Africa, Europe, and beyond. Tags: airfareairportsflight ticketsMorocco
Business Insider
07-07-2025
- Business
- Business Insider
Top 10 African countries with the highest international air ticket charges
International air passengers in Africa paid, on average, 3.5 different types of charges, amounting to $68 per departure. Gabon is the most expensive country for international departures, with passengers paying $297.70 per trip. Business Insider Africa presents the top 10 African countries with the highest international air ticket charges. The list is courtesy of African Airlines Association (AFRAA). Gabon emerged as the most expensive country for international departures, with passengers paying $297.70 per trip. Africa's tourism sector is showing strong recovery and promise, with 66.3 million international tourists visiting the continent in 2024 and generating $38 billion in total receipts, according to the United Nations World Tourism Organization (UNWTO). The sector's contribution to the global GDP reached $81 billion, surpassing that of the automotive manufacturing, healthcare, and banking sectors, underlining its significance for African economies. Despite these gains, the continent's air transport industry remains largely unprofitable, particularly for passenger carriers. A key factor contributing to this challenge is the high cost of taxes, charges, and fees levied on airlines and passengers. High charges weigh heavily on passengers According to the 2024 Taxes and Charges Study Review released by the African Airlines Association (AFRAA), international air passengers in Africa paid, on average, 3.5 different types of taxes and fees, amounting to $68 per departure. This marks a slight increase from the $66 average recorded in 2022. Gabon emerged as the most expensive country for international departures, with passengers paying $297.70 per trip. It also ranked second for regional flights at $260. Sierra Leone topped the regional category, charging $294 for both regional and international departures. Nigeria placed third in both categories, with air travellers paying $180 for each. Rank Country International departure tax 1 Gabon $297.7 2 Sierra-Leone $294 3 Nigeria $180 4 Djibouti $168.7 5 Niger $130.7 6 Benin $123.4 7 Senegal $122.6 8 Liberia $115 9 Ghana $111.5 10 DR Congo $109.9 West and Central Africa: Highest charges, lowest traffic The AFRAA report, which surveyed 54 African countries in September 2024, revealed that West Africa has the highest average levies on the continent, $109.50 for international departures and $97 for regional. Central Africa follows closely, making these two subregions the most expensive for air travel. On average, passengers in West and Central Africa pay $109.49 and $106.62 respectively in charges, well above the continental average. Ironically, these regions account for just 23% of total African air traffic, yet more than half of their countries charge over $100 per ticket in taxes and fees.
Business Insider
07-07-2025
- Business
- Business Insider
Nigeria's air fare taxes more ridiculously expensive than most African countries
According to a recent report by the African Airlines Association, air travelers in Nigeria pay three times more in taxes than air passengers in other African countries. Nigerian air travelers face significantly higher taxes, averaging $180 per foreign departure compared to the African average of $68. Countries such as Gabon, Sierra Leone, and Nigeria have the highest aviation taxes, while others like Libya and Malawi have the lowest. High operational costs make flights within Africa from Nigeria more expensive than some flights to Europe. According to the survey titled AFRAA Taxes and Charges Study Review 2024, Nigerians pay an average of $180 each per foreign departure, which is almost three times the continental average of $68. Gabon is the most expensive country in terms of net taxes, levies, and fees, followed by Sierra Leone and Nigeria, the report revealed. The list also includes Niger, Benin, and Ghana. Libya, Malawi, Lesotho, and Algeria are the least expensive countries for international departure taxes. Flying from Nigeria to other African nations is more expensive than flying to some European locations due to high operating costs, according to Dr. Kingsley Nwokoma, President of the Association of Foreign Airlines' Representatives in Nigeria, as seen in the Punch newspaper. Nigeria's aviation problems The Nigerian government has admitted to some of the problems and is still working to find a long-term fix. The most recent of these was the clearing of a backlog of about $900 million in foreign airline receipts that had been held up by a lack of foreign exchange. In the past, this problem led to airlines raising prices for flights to Nigeria. Airlines have since been advised by authorities to modify their ticket pricing to reflect the improved circumstances. The cracks in Nigeria's aviation industry go beyond just expensive flight deposits. Currently, Nigeria ranks among the African countries without a national airline. Despite boasting Africa's largest population, a sizable market, and enormous potential, the West African country does not operate has failed to properly operate its own national airline. Nigeria Airways proudly flew the flag from 1958 to 2003. It featured everything from Airbus A310s to Boeing 737s and 747s. However, the airline was permanently grounded following decades of financial difficulties. Nigeria has made numerous attempts to establish a new national carrier since then, but for some reason or the other, has always come up short.
Yahoo
03-07-2025
- Business
- Yahoo
African air passengers taxed disproportionately: Report
Air travel passengers pay more in taxes to fly from Africa than counterparts departing from Europe or the Middle East, a report by the African Airlines Association showed. The average amount of taxes, charges, and fees for international departures from Africa is $68, twice the average for both Europe and the Middle East. Africa's air transport industry is not profitable, the airline group said, in part because of the high levels of taxes and charges that civil aviation authorities levy on airlines. 'Air transport is perceived as a luxury service across the continent,' the group said, a factor that leads governments, airports, and service providers to 'overcharge airlines even though many need help to survive.' It called for tax structures to be harmonized between countries to reduce excessive charges, and for authorities to seek out 'alternative funding methods for aviation infrastructure.'
