Concern about flight prices as aviation fuel levy increased ‘without consultation’

Flight price hikes on the way? Well, the DA thinks so as the aviation fuel levy was reportedly increased without consultation.

The Democratic Alliance (DA) says it is concerned about the consequences of a proposed newly increased aviation fuel levy, particularly its impact on airlines, charters, and passengers.

The amendment to the South African Civil Aviation Authority Levies Act, 1998 (Act No 41 of 1998) which appeared in the Government Gazette last week will be an increase to the existing aviation fuel levy, now firmly set at 20.83 cents per litre, payable by both consumers and wholesale distributors.

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AVIATION FUEL LEVY SET TO INCREASE

The DA says the amendment will indisputably inflate the base costs for these businesses, already grappling with daunting economic challenges.

The party said the aftermath is clear and unavoidable: this expense will be shouldered by the passengers.

DA Shadow Minister of Transport Chris Hunsinger said this escalation in levy further complicates the aviation industry’s intricate pricing structures and advanced booking systems.

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Hunsinger said it introduces an additional and unpredictable variable into an already complex equation. The long-term effects will unquestionably lead to heightened fluctuations in end-user prices, destabilising the industry.

“Most alarmingly, this amendment appears to have been enacted without any industry consultation. The lack of transparency and engagement violates the principles of public participation, fundamental tenets of the original Levies Act. This approach threatens the very democratic processes that underpin our legislative systems.

“A unilateral decision of this magnitude undermines the stability of the industry and dismisses the invaluable insights industry stakeholders could provide,” he noted.

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CALL FOR CIVIL AVIATION TO RETRACT AMENDMENT

The party has called on Transport Minister, Sindisiwe Chikunga to explain what justified this decision and why the Aviation sector wasn’t consulted.

“The DA categorically rejects the method through which this levy amendment has been implemented. We call on the South African Civil Aviation Authority to retract this amendment and commit to a more comprehensive, transparent process. This is the only path to preserving the sustainability of our aviation industry and protecting South African consumers.”

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