Airlines Suffering Under High Aviation Fuel Tax

Dutch Airlines, KLM Royal has expressed misgivings about high tax on aviation fuel in Ghana.

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According to the Airline the high aviation fuel tax is obstructing its operations in the West African country.

KLMAxel Metselaar, Country manager for KLM on Citi FM said the fuel tax is one major headache the company is facing since it is impacting on the company’s cost of operating.

Aviation fuel in Ghana costs about US$3.14 per litre and considered the highest relatively to prices in West Africa.

Mr Metselaar said the high tax on aviation fuel in Ghana has forced international airlines like KLM and others, to fly in fuel for their operations.

“…It is to such extent that unfortunately KLM, but not only KLM, other airlines are … actually taking fuel from Amsterdam, flying it over to Accra to be used actually for the flight returning, which is in itself ridiculous,” Mr Metselaar added.

According to him, “from a perspective of business, it is not good; from the perspective of environment, I’m not happy with it, but unfortunately the difference between doing it this way …and purchasing a full load of fuel here in Ghana, makes the balance go to fuelling in Holland.”

Mr Metselaar also mentioned that as an airline group, they have been working on making everybody understand that the Lower the taxes, the more volumes one gets at the end.

“ I think it will be a wise decision to reduce taxes in 2016 to lower those taxes..,”.
Aviation tax costs between US$1.94 and US$2.30 in countries like Cameroon, Nigeria and Benin.

Source: Newsghana.com.gh

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