Fears over proposed aviation-fee increment
• Operators want fair increments
The aviation sector is not taking kindly to plans by the aviation authority to increase licencing fees for the domestic industry, with some fearing it may cripple their operations.
Fly Namibia CEO Andre Compion has expressed worry over proposed fees operators will have to pay to the Namibia Civil Aviation Authority (NCAA), saying while there is a need for improved regulation, it must not bear negative consequences for the sector.
He made the comments following a stakeholder engagement held by the NCAA over the proposed increases this week.
The increases deal with Part 187 of the Civil Aviation Act fee schedule, which was last amended in 2018.
Sharing his views, Compion said the aviation sector was under increased pressure to operate.
“Aviation in Namibia is currently under severe pressure due to cost escalations at a level never seen before. This is partly attributable to the weak exchange rate between the Namibian dollar versus the American dollar and the rise in cost of fuel, but also to never-ending increases in fees, levies and taxes,” he said.
“As price-takers, the industry can do very little when new and increased fees are imposed on it."
The sector would accept the proposed changes, provided they are fair, Compion said.
“As responsible citizens, we accept that our regulators have to generate income, but would insist that any increases and new fees not exceed the present rate of inflation, be reasonable and appropriate and be charged for actual services rendered only,” he said.
Don’t stifle us
The proposed fee structure also meant that the NCAA should not stifle operators, Compion said.
“The NCAA has the responsibility to ensure that aviation in Namibia remains safe and in compliance with international best practice. Equally so, it has a responsibility towards the aviation industry and the flying public to ensure that its services are rendered efficiently and at the lowest possible cost.”
Aircraft Owners and Pilots Association acting CEO Matt Totten Jr said while the proposed fees were previously misunderstood, the NCAA meeting provided much-needed clarity.
“It was initially unclear, but looking at inflation data, it seems justified. I think the industry is in agreement, we just need to make sure the fee numbers used are correct and the correct increases are implemented.”
The aviation sector would deliberate further on the proposed fee structure, he added.
“We will need clarity whether new fees are not being added. We have the next 10 days to come back with new recommendations.”
Prohibitive, expensive
Totten Jr, however, expressed worry regarding annual renewals required for aircraft licences, saying they are prohibitive and expensive.
According to him, aircraft owners have to renew the licences of their aircraft annually, a practice not done in other countries.
“This is creating a lot of expense on the part of the NCAA and aircraft operators. We need to modernise our air-worthiness licencing, something we will need to look at,” he said.
He made the comments following a stakeholder engagement held by the NCAA over the proposed increases this week.
The increases deal with Part 187 of the Civil Aviation Act fee schedule, which was last amended in 2018.
Sharing his views, Compion said the aviation sector was under increased pressure to operate.
“Aviation in Namibia is currently under severe pressure due to cost escalations at a level never seen before. This is partly attributable to the weak exchange rate between the Namibian dollar versus the American dollar and the rise in cost of fuel, but also to never-ending increases in fees, levies and taxes,” he said.
“As price-takers, the industry can do very little when new and increased fees are imposed on it."
The sector would accept the proposed changes, provided they are fair, Compion said.
“As responsible citizens, we accept that our regulators have to generate income, but would insist that any increases and new fees not exceed the present rate of inflation, be reasonable and appropriate and be charged for actual services rendered only,” he said.
Don’t stifle us
The proposed fee structure also meant that the NCAA should not stifle operators, Compion said.
“The NCAA has the responsibility to ensure that aviation in Namibia remains safe and in compliance with international best practice. Equally so, it has a responsibility towards the aviation industry and the flying public to ensure that its services are rendered efficiently and at the lowest possible cost.”
Aircraft Owners and Pilots Association acting CEO Matt Totten Jr said while the proposed fees were previously misunderstood, the NCAA meeting provided much-needed clarity.
“It was initially unclear, but looking at inflation data, it seems justified. I think the industry is in agreement, we just need to make sure the fee numbers used are correct and the correct increases are implemented.”
The aviation sector would deliberate further on the proposed fee structure, he added.
“We will need clarity whether new fees are not being added. We have the next 10 days to come back with new recommendations.”
Prohibitive, expensive
Totten Jr, however, expressed worry regarding annual renewals required for aircraft licences, saying they are prohibitive and expensive.
According to him, aircraft owners have to renew the licences of their aircraft annually, a practice not done in other countries.
“This is creating a lot of expense on the part of the NCAA and aircraft operators. We need to modernise our air-worthiness licencing, something we will need to look at,” he said.
Comments
Namibian Sun
No comments have been left on this article