Monday, 11 May 2009

High fuel prices harm airlines

From The Citizen, Dar es Salaam
By Samuel Kamndaya

High tax rates on aviation fuel makes airlines operating in Tanzania less competitive than their counterparts in other East African Community (EAC) member states. The Precision Air, chief executive officer (CEO), Mr Alfonse Kioko said in Dar es Salaam during the weekends that with high tax rates, aviation fuel prices are 30 per cent more expensive in Tanzania than they are in Kenya and Uganda.

'Due to various charges on fuel, it is more expensive hear by up to 30 per cent compared to Kenya and Uganda but when we ask dealers, they cite taxation as the major obstacle,' he said.

He said however that operators are currently dialoguing with the government to have the taxes reduced to turn Tanzania into a cheaper destination. It is hoped that such a move will also help to attract increased numbers of tourists in the country.

Mr Kioko was speaking to reporters in presence of the airline's other senior officials, shortly before launching the airline's new ATR72-500 aircraft that will be plying between Mwanza and Dar es Salaam. The 70-seater aircraft, named 'Mwanza' is the third in a $129million order deal between an Italian-French aircraft manufacturer known as Avions de Transport Regional (ATR) on one side and Precision Air on the other side.


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