June 20, 2024

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CEO of Ethiopian Airline

Ethiopian Airlines Concerned at UN Tax Proposal

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Ethiopian Airlines has raised concerns about tax reform proposed by the United Nations for the aviation industry. The airlines highlighted that this will impact the aviation sector. CEO of Ethiopia Airlines, Mesfin Tasew, said, during the 12th Aviation Stakeholders Convention held in Addis Ababa, that these reforms could pose challenges.

The 12th Aviation Stakeholders Convention took place from May 12th to 15th. More than 500 delegates from the aviation sectors spanning Africa, Europe, the Middle East, Asia, and North America attended this convention. This event provided a crucial forum for discussing and devising strategies to accelerate the growth of air transportation in Africa, while simultaneously promoting collaboration among the participating countries.

The United Nations’s tax reform plan focuses on reevaluating the double taxation policy. UN is proposing that airlines pay taxes in every country where they conduct operations. Many countries have shown their concerns regarding these tax reforms. Experts say it could hurt airlines a lot. It might even make some airlines stop flying to certain countries.

CEO of Ethiopian Airlines warned that if the tax proposal is put into practice, airlines may have no choice but to either withdraw from the market entirely or substantially raise ticket prices for travelers. This would likely lead to a drop in the number of passengers and a subsequent decrease in revenue for nations.

As the discussion around the suggested tax changes of the United Nations persists, the aviation industry and its stakeholders are keeping a close eye on developments. Stakeholders are hoping that a resolution can be reached that allows for a balance between generating revenue and ensuring the sector’s long-term viability and expansion.

Last week, In Addis Ababa, the CEO of Ethiopian Airlines Group, Mesfin Tasew, addressed the 1st African Aviation Safety & Operations summit stressing the importance of improving African aviation safety and operations. Mesfin Tasew claimed that African Airlines had, by meeting international security standards, not only made air travel safer in Africa but also set a new, higher standard for the whole airline industry. The Ethiopian airline airline seems to be expanding not just international but also domestic operations. 

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