- Lagos and Abuja airports have been identified as the most expensive airport fees
- IATA stated that the development of the industry is being hindered by high tax
- The vice president of IATA said aircraft lease rental rates are three times more than in Europe
The Nnamdi Azikiwe International Airport (NAIA) in Abuja tops the list of airports with the highest airport fees according to the International Air Transport Association (IATA). Murtala Muhammed International Airport (MMIA) in Lagos came in second.
According to the association, the continent’s high taxes hinder the development of the industry in the nation.
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Different continents with different challenges
The Vice-President of IATA for Africa and the Middle East, Kamil Al-Awadhi, stated that African airlines have distinct challenges that set them apart from airlines on other continents like Asia and Europe during the Aviation Africa 2023 Summit in Abuja.
Al-Awadhi cited high borrowing rates of around 25% as one of the problems that have combined to harm the carriers on the continent and have stopped them from competing with their counterparts in other areas of the world.
He claimed that aircraft lease rental rates are also concerning, claiming that they are ‘killing’ and three times more than in Europe.
IATA vice president said:
Abuja has the highest charges followed by Lagos. How can you have such high taxes and expect to be profitable? Nigerian airlines can’t compete with others. African airlines have put themselves in a terrible situation to compete. They are not financially viable with excess charges.
Fuel is higher by 20 percent. The loans are horrendous. The continent needs to review these issues. If you want to see Gross Domestic Product (GDP) change, fix your aviation industry. Doha, Dubai and the entire United Arab Emirates (UAE) grew from nothing. Airlines contribute to the growth of the economy.
He revealed that whereas 18% of the world’s population live in Africa, just 2.1% of air travel occurs there.
Al-Awdhi however said that African-based airlines are anticipated to have a modest combined loss of about $484 million in 2023, despite the fact that the continent continues to be a challenging one in which to run an airline due to issues with connectivity, infrastructure, and the economy.
Despite the difficulties, he pointed out that the industry is still moving towards profitability in the wake of the COVID disruption and might do so as early as next year.
The Federal Government of Nigeria recently approved United Airlines to operate international flights within the country.
Legit.ng had reported that Airlines have postponed and canceled flights of international travelers leaving Nigeria after luggage belt malfunctions at the new terminal of the Murtala Muhammed International Airport in Lagos state.
“Poor runway lighting”: FAAN explains why Kano-bound aircraft landed in Lagos airport
Legit.ng had reported that the Federal Airports Authority of Nigeria (FAAN) said it diverted flights to Murtala Muhammed International Airport in Lagos from Mallam Aminu Kano International Airport due to poor runway lighting at the Kano airport.
Abdullahi Yakubu-Funtua, the director of Public Affairs and Consumer Protection, said the diversion became necessary after a glitch was discovered on Runway 06/24 on July 15, 2023, at about 1600hrs.
According to a Leadership report, after efforts to restore power failed, Yakubu-Funtua said the airport management needed to activate a Notice to Air Men (NOTAM) to allow for repairs.
Source: Legit.ng
