Fuel costs 21% more in Africa

The high-cost operating
environment in Africa places
the continent’s airlines at a
competitive disadvantage.
According to Tony Tyler,
director general and CEO
of the International Air
Transport Association
(Iata), three of the biggest
issues facing airlines in
Africa are fuel, taxation and
liberalisation.
Fuel costs are 21% more
expensive in Africa than the
global average. Government
policies on aviation in
Africa tend to see it as an
‘elite’ product, rather than
as a critical component of
the continent’s economic
infrastructure,” he said at the
69th annual general meeting
(AGM) of the organisation
in Cape Town last week. “As
a result, aviation is heavily
taxed – often in violation
of International Civil
Aviation Organisation (Icao)
principles that prohibit
the taxation of jet fuel for
international operations.
Moreover, despite high
infrastructure charges,
the failure to invest in fuel
supply infrastructure has
resulted in frequent supply
disruptions that cripple
operations.