Economy

Retaining price of JET A-1 fuel at current levels in best interest of aviation industry —CAA

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The Civil Aviation Authority (CAA) has warned that increasing the prices of Jet A-1 fuel would have adverse effects on the operational costs for the airline industry.

CAA has therefore welcomed the non-increment of prices on Jet A -1 fuel as announced by the Energy Regulations Board recently, describing the decision as bold.

CAA Board Chairperson Patrick Nkhoma, said increasing the prices of Jet A-1 fuel would affect the operational costs for the airline industry and ultimately increase the cost of doing business.

“If the present challenge of aviation fuel is not fully addressed, we would have a situation where airlines’ profit margins contract such that the continued operations become unsustainable due to the high cost of doing business.

“The high cost of JET A-1 fuel is not only a phenomenon in Zambia alone but a number of African countries are also grappling with the same issue. The topic is also being tackled at governmental level to demonstrate the gravity of the issue,” he said in a statement issued on Thursday.

Read more: Govt improving aviation infrastructure to boost tourism —Minister Tayali

Nkhoma said the CAA had been having various engagements with stakeholders such as the Ministry of Transport and Logistics, the aviation industry, the Tourism Council and the Energy Regulation Board to extensively tackle this issue.

He explained that the subject matter needed a multi sectoral stakeholder engagement approach because of the complexity of its nature.

“We are confident that the government and the various players concerned with this matter are taking the necessary steps to look into the issue and that the CAA will continue to engage them to see to it that we continue to have a viable aviation industry,” Nkhoma said.

The CAA seeks to provide effective and efficient regulatory services to the Aviation industry ensure legal compliance and provide safety assurance for all air transport users in Zambia.

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