The African Airlines Association (AFRAA) is seeking the collaboration of industry players such as fuel suppliers, aviation regulatory and aeronautical authorities and airport authorities on steps to be taken to lower fuel cost for carriers on the continent.
To drive the objective, the continental body has concluded its fuel programme for 2021-2022 period.
The programme was put together under the AFRAA fuel project. Though no Nigerian carrier took part in the programme, some of the 12 carriers that participated operate flights into country.
They include Air Botswana, Air Burkina, ASKY, Astral Aviation, Kenya Airways, LAM Mozambique, Precision Air, RwandAir, South African Airways, TAAG Angola, Camair-co and Congo Airlines.
The fuel programme, which runs yearly, has achieved $55 million savings for participating airlines since its establishment in 2012. This year’s programme is expected to realise an estimated $0.5 million in cost savings for the participating airlines for the 2021-2022 season.
Fuel is the most significant component of operating costs of flights. Fuel costs are higher in Africa compared to the rest of the world. High fuel costs and other expensive charges drive down the competitiveness of African air carriers. As a result, African airlines’ available seat-kilometre costs are much higher than the industry’s average.
AFRAA Secretary-General, Abdérahmane Berthé, said the sustainability of the continent’s airline industry is the group’s top priorities.
According to him, excessive taxes, charges and fees make African airlines less competitive since these levies have a significant impact on the financial performance of airlines operating in a high cost environment.
“It is against this backdrop that it continuously establishes initiatives and joint projects for its members.
“We will continue to facilitate beneficial cooperation among African airlines with the objective to implement cost-effective common solutions on various aspects of airline operations. This is the reason more airlines should partake in the AFRAA fuel Project which is well aligned to COVID-19 recovery plan actions on cost management,” he said.
Also, Chief Executive Officer of Astral Aviation, Sanjeev Gadhia, said fuel constitutes a large component of an airline’s operating costs requiring intense industry efforts to achieve its reduction and efficiency.He said: “Fuel prices in Africa have historically been 20 per cent higher than other regions though the sources and supply chains are similar.“Through Astral Aviation’s participation in the project, we have achieved price competitiveness from the fuel programme and cost reduction through the lobbying efforts and the economies of scale. As the Chair of the Committee, Astral Aviation will continue […]
