The Guvnor
8th Jan 2002, 20:23
CAAZ Proposes Bold Initiatives To Lure Airlines
Zimbabwe Independent (Harare)
January 4, 2002
Posted to the web January 4, 2002
Godfrey Marawanyika
THE Civil Aviation Authority of Zimbabwe (Caaz), hit by the withdrawal of major airlines from the country, is seeking authority to sell Jet A1 in foreign currency and exemption from the government bond levy.
Zimbabwe's aviation fuel is the most expensive in the region, a factor that has forced some airlines to relocate elsewhere.
The Caaz's recommendations are contained in its National Economic Recovery Programme for the travel and tourism sector.
"Zimbabwe offers the most expensive fuel in the region and this has negative impacts on the development of travel and tourism," the document says.
"Caaz is recommending that authority be granted to it to procure fuel direct from source and be exempted from government levy bond, Noczim debt servicing levy and that Jet A1 be sold in foreign currency."
The document says Harare airport charges 107,45 USc/litre for Jet A1 whilst Johannesburg airport charges 30,27 USc/ltr. Lusaka charges 47 USc/ltr and Windhoek 34,5.
Caaz said the selling price translates to 40% of the existing market price for Jet A1.
Already Caaz is reviewing landing and parking fees for airlines in an attempt to woo back carriers and find new clients. Once the new structures are put in place they will be comparably aligned to those in the region.
As part of the new incentives, Caaz will offer free landing and offer concessionary rates for new entrants, both passenger and cargo flights.
Currently Zimbabwe charges US$300 for a B737/B738 in landing fees whilst Johannesburg charges US$232.
Most airlines have pulled out of Zimbabwe due to restrictions on remission of sales revenues. Others have been forced to withdraw their services because of declining market demand. Air France, KLM, Lufthansa, Qantas, Air Mauritius, Swissair, Ethiopian Airlines and Cameroon Airways withdrew services in the course of last year. Austrian Airlines left the year before.
Ethiopian Airlines only returned after a temporary reprieve was granted to them to invest earnings in real estate pending remittance when the foreign currency situation improved.
Caaz said the prevailing macro-economic environment had seen a number of airlines withdrawing from the Zimbabwean market.
"Developments elsewhere in the region are having a growing effect on the already shrunken travel and tourism market in Zimbabwe," Caaz said.
"The Livingstone project, stifling Zimbabwe aviation regulations, high operating costs and low yields, have inhibited growth in the industry leading to the negative position being currently experienced in the country."
The developments across the Zambezi River, where Victoria Falls lost a major tourism hotel development by the Sun Hotel Group to Livingstone in Zambia, proved to be the last straw for a once vibrant sector.
"The immediate situation calls for survival strategies that can be initiated and implemented now in order to keep the airlines that are currently flying into Zimbabwe and to attract new players," Caaz said.
Zimbabwe Independent (Harare)
January 4, 2002
Posted to the web January 4, 2002
Godfrey Marawanyika
THE Civil Aviation Authority of Zimbabwe (Caaz), hit by the withdrawal of major airlines from the country, is seeking authority to sell Jet A1 in foreign currency and exemption from the government bond levy.
Zimbabwe's aviation fuel is the most expensive in the region, a factor that has forced some airlines to relocate elsewhere.
The Caaz's recommendations are contained in its National Economic Recovery Programme for the travel and tourism sector.
"Zimbabwe offers the most expensive fuel in the region and this has negative impacts on the development of travel and tourism," the document says.
"Caaz is recommending that authority be granted to it to procure fuel direct from source and be exempted from government levy bond, Noczim debt servicing levy and that Jet A1 be sold in foreign currency."
The document says Harare airport charges 107,45 USc/litre for Jet A1 whilst Johannesburg airport charges 30,27 USc/ltr. Lusaka charges 47 USc/ltr and Windhoek 34,5.
Caaz said the selling price translates to 40% of the existing market price for Jet A1.
Already Caaz is reviewing landing and parking fees for airlines in an attempt to woo back carriers and find new clients. Once the new structures are put in place they will be comparably aligned to those in the region.
As part of the new incentives, Caaz will offer free landing and offer concessionary rates for new entrants, both passenger and cargo flights.
Currently Zimbabwe charges US$300 for a B737/B738 in landing fees whilst Johannesburg charges US$232.
Most airlines have pulled out of Zimbabwe due to restrictions on remission of sales revenues. Others have been forced to withdraw their services because of declining market demand. Air France, KLM, Lufthansa, Qantas, Air Mauritius, Swissair, Ethiopian Airlines and Cameroon Airways withdrew services in the course of last year. Austrian Airlines left the year before.
Ethiopian Airlines only returned after a temporary reprieve was granted to them to invest earnings in real estate pending remittance when the foreign currency situation improved.
Caaz said the prevailing macro-economic environment had seen a number of airlines withdrawing from the Zimbabwean market.
"Developments elsewhere in the region are having a growing effect on the already shrunken travel and tourism market in Zimbabwe," Caaz said.
"The Livingstone project, stifling Zimbabwe aviation regulations, high operating costs and low yields, have inhibited growth in the industry leading to the negative position being currently experienced in the country."
The developments across the Zambezi River, where Victoria Falls lost a major tourism hotel development by the Sun Hotel Group to Livingstone in Zambia, proved to be the last straw for a once vibrant sector.
"The immediate situation calls for survival strategies that can be initiated and implemented now in order to keep the airlines that are currently flying into Zimbabwe and to attract new players," Caaz said.