An emerging trend across Africa is the increasing outsourcing of airport services and operations to private sector businesses through concessioning agreements.
- •While this model is designed to enhance efficiency and inject private capital into the aviation sector, concerns are mounting over the prioritization of profits at the expense of service quality, safety, and affordability.
- •According to the African Airlines Association (AFRAA), although it supports private sector participation in service delivery, it strongly opposes any model that places financial gains above the core principles of safe, efficient, and high-quality service provision.
- •The Afraa concerns come barely a year after similar cancelled proposal between Adani Enterprises to manage and expand Jomo Kenyatta International Airport (JKIA) under a 30-year concession.
“These private entities are motivated by profit and often raise passenger and airline charges following takeover,” said a spokesperson for AFRAA. “This risks making air travel more expensive for both operators and the traveling public.”
AFRAA reiterated need for balanced concessioning agreements that ensure fair pricing, maintain service standards, and uphold safety protocols. The association is also advocating for the inclusion of multiple service providers at airports where business volumes permit, to prevent monopolistic practices and encourage healthy competition.
The Adani-JKIA concession proposal promised modern facilities, including a new terminal, a second runway, expanded taxiways, and commercial developments such as hotels and retail infrastructure. President William Ruto shelved the deal, citing legal, transparency, and integrity concerns.
Why Africa’s Aviation is Struggling
Meanwhile, the 2024 AFRAA taxes and charges study review has shed light on the growing financial strain imposed on Africa’s aviation industry due to a wide range of taxes, fees, and charges levied by governments and airport authorities. As a sector vital to global connectivity and economic activity, aviationanie is increasingly feeling the weight of these costs, which are significantly influencing ticket prices, airline profitability, and passenger demand.
The report categorizes these charges into key areas such as fuel taxes, passenger service charges, security fees, airport landing and take-off fees, and environmental levies. While these are primarily intended to fund infrastructure, enhance safety and security, and address environmental impacts, they also risk dampening passenger traffic—especially in regions where alternative modes of transport are readily available.
In 2024, the aviation industry continued to grapple with mounting financial pressures as countries worldwide reinstated or increased taxes to address post Covid 19-pandemic fiscal deficits. Environmental taxes have also become more prevalent, aligning with global climate change mitigation efforts.
The study offers a review of the total taxes and fees collected on air tickets in each African country, focusing on both regional and intercontinental travel. It also compares Africa’s tax burden with that of two neighboring regions—Europe and the Middle East. Data cited in the report is based on figures from September 2024, as provided by IATA’s Airline Cost and Charges (ACIC) database.
The findings underscore the urgent need for a balanced approach to aviation taxation that supports both government revenue goals and the sustainable growth of air travel in Africa.
