A team comprising three experts, working for 110 days, has been assembled with the objective of conducting a gap analysis and formulating practical recommendations regarding the adverse effects of taxes and charges on air transport in Africa. The team is specialised in the field of aviation taxes, fees, and charges.
On 16 November 2024, the experts completed an initial literature review and interim report. The final report is scheduled for completion on 31st April 2025, or thereabouts. The final report will include an analysis of the raw data from the IATA aviation database on taxes and charges for Africa, as processed by the expert team.
A series of missions were conducted in multiple African countries, during which experts engaged in discourse with numerous representatives of the aviation industry, including airline operators and National Aviation Authorities (NAAs). The missions enabled the collection of information and data pertinent to the development of a study examining the charges, taxes, and fees associated with the aviation industry.
Background
The majority of aviation charges, taxes and fees in Africa are not in compliance with the principles and procedures set forth by the International Civil Aviation Organization (ICAO). These include, for instance, Article 24 of the Convention on International Civil Aviation, 7 December 1944 (Chicago Convention), Doc 8632, "Policies on Taxation in the Field of International Aviation," and Doc 9082, "ICAO's Policies on Charges for Airports and Air Navigation Services."
Furthermore, the pricing structure for jet fuel in Africa is distinguished by the presence of considerable levies and taxes. Fuel represents up to 40% of an airline's operating costs, making it a crucial element in the financial structure of the industry. Third-party fees and charges contribute significantly to the elevated cost of fuel, with studies indicating that there may be as many as fifteen different categories of fees at a single location. Furthermore, there is a lack of economic oversight of aviation charges and taxes levied by airports, air navigation service providers, civil aviation authorities, and governments.
The profiles of all the project experts can be consulted here: https://easa-afcac.com/activit...
Posted: Dec 09, 2024
