Africa World Airlines (AW, Accra) has welcomed Ghana's decision to exempt domestic airlines from duties and taxes on imported aircraft spare parts, after President John Dramani Mahama signed legislation granting a long-sought concession aimed at lowering operating costs and improving the sector's financial sustainability.
"While we have hoped for this level of government support for years, the official announcement still came as a welcome surprise to all of us at AWA," COO Sohail Mahmood told ch-aviation.
"Ghana historically levies some of the highest aviation taxes on the continent, and although we have successfully navigated this environment, this policy change fundamentally improves our operational economics. Ultimately, this exemption provides substantial financial relief and strongly supports our strategy to expand AWA beyond a regional carrier," he said.
Mahama announced the measure during a groundbreaking ceremony for a new multi-purpose car park and airport hotel complex at Accra, saying he had assented to amendments to the Ghana Customs Act removing duties and taxes on spare parts imported by domestic airlines, the Ghana News Agency (GNA) and Aviation Ghana reported.
"We want to make domestic airlines safer, so if they bring in any parts to maintain their aircraft, they will come in duty- and tax-free," he said.
The exemption follows lobbying by Ghana's two main domestic carriers, Africa World Airlines (AWA) and PassionAir (OP, Accra), which had urged the government to reduce taxes on aircraft spare parts, import duties, and other operating costs they said were constraining growth.
The tax relief removes a significant cost burden for domestic operators, which rely on imported components to maintain their fleets. Lower maintenance costs could improve airlines' cash flow, support fleet expansion and route development, and potentially enable more competitive fares on domestic routes.
ch-aviation has contacted PassionAir for comment.
