Home » AIR TRANSPORT – Taxes increase the price of tickets

AIR TRANSPORT – Taxes increase the price of tickets

by drbyos

The Madagascar destination is one of the most expensive in the world. The many taxes affect ticket prices.

Beyond a few imperfections inherent in such an event, the well-run organization lived up to its missions. The number of stands was above expectations. Exhibitors showed creativity and ingenuity in bringing traffic to their stalls. The éductour has repositioned the Big Island on the world tourism market. Visitors came in droves. But there is still a handicap to be overcome. Like a tangent tracing its trajectory across the sky. The Madagascar destination is not within the reach of all budgets. And even the tariffs on the domestic air transport networks are at an inaccessible height even for rather well-to-do households. At the origin of this surge in the price of plane tickets, a surcharge. For example, according to Madagascar Airlines, on national lines, this burden represents 60% of the total cost. The rest, 40%, is allocated to financial expenses for the purchase of fuel, the acquisition and maintenance of aircraft, catering, marketing and advertising, before deducting the commercial margin. Among these tax cascades, the fuel surcharge or YQ tax, associated with security expenses and insurance premiums, depends on the fluctuation of the price of oil. Then, G9 taxes for Ravinala Airports or A5 for other airport managers. This is a penalty linked to the use of airports, calculated in proportion to the number of passengers on board, details the national company.

Economy of scale

Attached to this is the value added tax, VAT, up to 20% of the income of Madagascar Airlines on its domestic flights, the MG tax that it pays for civil aviation in Madagascar, ACM, and the tax YR which represents all management fees and costs related to a reservation. It will thus be necessary to carry out a high-flying exercise to offer plane tickets acceptable to passengers. Tourism professionals present at the ITM, fearing negative effects on their activities with this recovery which is beginning, want a revision of this price structure. They also noticed that the solution could come from the densification of air traffic. Airports in Asian and African countries, they say, receive 300 to 350 flights a day. Here we barely have 70 a week. The idea would be to arrive at an economy of scale to decide between these heavinesses which weigh down the take-off of Madagascar Airlines. Achieving the goal of one million tourists by 2028 will depend on many factors. First, the availability of 40,000 seats in air transport wanting to serve Madagascar. Then, the ability of potential investors in the hotel and restaurant industry to build 20,000 high-end rooms, and finally the quality offered by the staff assigned to multiple tourist activities.

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