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By Seth Emmanuel
The East African Business Council (EABC) has called for the reduction of air-related fees and taxes to reduce the cost of air transport in the EAC bloc.
According to African Airlines Association, in 2020 Africa recorded USD.10.21 billion passenger revenue loss. Mr. Kalisa said “the average airport charges in Eastern Africa is high at USD. 579.78 increasing air passenger ticket and cargo costs and impacting the competitiveness of the EAC bloc”
Passenger taxes on regional departures are averaged at USD. 46.16 while international departures taxes are at USD.47.85. Passengers are also transfer and arrival taxes and fees.
Apart from passengers’ taxes levied directly on the ticket, airlines are also charged noise, parking, common user terminal equipment, jetway charge, passenger bus, lighting further increasing their operating costs.
Speaking during his courtesy visit to RwandAir, Mr. Kalisa, EABC CEO has urged the Ministers in charge of Transport in the EAC Partner States to reduce and align the air parking, landing, navigation, handling fees & taxes in order to increase traffic volumes and build resilience and recovery of the air transport sector in the EAC bloc.
Mr. Kalisa said, “air taxes and fees compose 50% of air tickets costs.” He elaborated that reduction of these charges will lower operating and air-ticket costs leading to higher air traffic volumes, boosting regional tourism and business.
Ms. Yvonne Makolo, Chief Executive Officer of RwandAir said “ The region needs a change of mindset as air travel is not a luxury but a necessity especially now with the disruptions of COVID-19 pandemic.”
She urged EABC to push for market access under the African Continental Free trade Area in order to boost exports of EAC products.
She stated that RwandAir has diversified to new routes such as Goma, Luanda, Maputo, Accra, Libreville in Africa. She also urged the EAC Partner States to grant each other the fifth freedoms.