Business Council calls for air transport charges reduction in East Africa

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Business Council calls for air transport charges reduction Credit photo Courtesy

East African Business Council is calling for the reduction of air-related fees and taxes to reduce the cost of air transport in the bloc.

According to African Airlines Association, in 2020 Africa recorded USD.10.21 billion passenger revenue loss.

Council Executive Director John Bosco Kalisa said “the average airport charges in Eastern Africa are high at USD. 579.78 increasing air passenger ticket and cargo costs and impacting the competitiveness of the EAC bloc”

Speaking during his courtesy visit to RwandAir, he urged the Ministers in charge of Transport in the EAC Partner States to reduce and align the air parking.

The director also called for decrease in landing, navigation, handling fees and taxes in order to increase traffic volumes and build resilience and recovery of the air transport sector in the EAC bloc.

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.

Chief Executive Officer of RwandAir Yvonne Makolo, 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 the Business council 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, and Libreville in Africa.

The Executive officer also urged the EAC Partner States to grant each other the fifth freedoms.