Wednesday March 4, 2020
Addis Ababa, Ethiopia (HOL) - High operation overheads occasioned by fuel costs and taxation inhibit growth in the aviation sector in Africa, a summit of aviation stakeholders from Africa gathering in Addis Ababa today heard.
Ethiopia Airlines CEO Tewolde Gabremariam said during the opening of the Africa Aviation 2020 Summit in Addis Ababa the turmoil facing the aviation industry in Africa could be reversed if industry players and governments build synergies towards cutting down operation costs.
“Aviation is not getting the attention it deserves by African governments. This has to stop. Taxes on fuel has to be reduced. African governments have to support the development of the aviation sector,” said Gabremariam.
Gabremariam said besides fuel costs which are 30% higher in African than the rest of the world, and high taxes on airlines inhibit growth driving airlines into losses. He noted airlines in Africa are taxed the most compared to other sectors such as alcohol or cigarettes.
The Ethiopian Airlines CEO who runs the most profitable airline in Africa also called for cooperation among airlines noting unlike airlines in Europe and Asia which cooperate to cut down operation costs, airlines in Africa operate independently thus the high costs which translate to prohibitive airfares.
The conference which concludes tomorrow brings together aviation industry players from across the continent and beyond. This year’s theme is Sustainability in light of challenging business environment.
Africa World Airlines CEO Sean Mendis and Dana Air CEO Obi Mbanuzuo presented the challenges facing as well as opportunities on African airlines.
This year’s summit comes amid difficulties in the aviation sector as a result of the Corona Virus disease which has forced most as governments to impose travel restrictions to block spread of the viral infection.
Somalia was represented by Somali Airlines Deputy CEO Aidarus Kahiye and Ahmed Gure a senior advisor to the Ministry of Transport and Civil Aviation who advises the government on revival of Somali Airlines.