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.
