Find us on Google+

Monday, 24 March 2008

Proflight on Jet Fuel Pricing

Good to see Proflight pushing for jet fuel pricing reform, something we have strongly argued on this blog. What is interesting is that Proflight are linking this to competition between foreign and domestic carriers. Higher jet fuel prices most certainly puts domestic carriers at a disadvantage since regional foreign carriers have access to cheaper reserves. Emphasis on "regional" there such as Kenya Airways and South African Airways. The argument is less applicable to British Airways who inevitably have to refuel in Lusaka given their long haul operation. Excerpt:

And Kabungo said the increasing number of airlines flying into the country’s main airports was an indicator of the buoyancy of the country’s aerospace.

He said it was important that the government lowered the cost of business and ensure foreign airlines did not get an unfair edge over local operators.

“At the moment, there are enough customers to carry and this is quite encouraging. For a long time we have been appealing to government to look at the cost of Jet A1 fuel. as at now, it is US $1.10 cents per litre whereas our neighbouring countries it is close to 70 cents,” said Kabungo.

“And in this industry we are competing with other operators around us, and so our operation costs are high and that means our fares are also high. If the question of fuel can be looked at, it means it will trickle down to the passengers by way of reduced fares.”

No comments:

Post a comment

All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.