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IATA CEO: Latin America 'is a very expensive place for airlines to do business' due to fees and tax

18-Nov-2013 10:54 AM

IATA CEO Tony Tyler stated (14-Nov-2013) Latin America "is a very expensive place for airlines to do business", and lamented the breaches of "global standards and recommended practices for fees and taxes" in the region. The Mexican Government's fuel tax, which recently received Senate approval, "is the latest example of a tax applied in contravention of ICAO standards and recommended practices" and IATA stated this would add an estimated MXN480 million (USD37 million) to annual fuel costs for carriers. IATA added, "Bolivia, Chile, Ecuador and the Dominican Republic also apply similarly misguided fuel taxes on international aviation." Mr Tyler commented, "The issue of taxes and charges in Latin America transcends the formal breaches of global standards and recommended practices... On average, fuel expense is around 14% higher than the world average. Brazil is more extreme at 17% above the global average." [more - original PR] [more - original PR II]