Bamako, Mali - African airlines will later this year launch a joint fuel procurement programme, to cope with the high cost of fuel, which is reaching record highs, the Association of African Airlines (AFRAA) said at its sixth forum, under the theme: 'Africa Roads 2011', that ended here Wednesday. According to AFRAA's officer in charge of financial matters, Ms. Juliet Indet, rising fuel prices affect airlines, as they have a direct impact on their operating costs, thereby pushing comPanaies to increase ticket prices, add new fees and consider offering fewer flights or use smaller aircraft. Shares of airlines on different stock markets fell after the political crisis in Tunisia and Egypt, which spread to Libya, a country with the largest number of oil reserves in Africa.

Libya supplies about two per cent of world oil supply and has close links with several European markets.

According to AFRAA, even before the Libyan revolt, British Airways, 8  February, increased its ticket prices, saying it paid over US$ 11 million for fuel daily.

To justify this, British Airways cited the 14 per cent increase in fuel prices since its last surcharge occurred last December.

According to Indet, Africa's fuel prices remain higher than in other parts of the world, mainly because of the relatively small volume consumed by comPanaies in the continent and their weak oil bargaining position, which in some cases, suppliers hold a monopoly granted by the state.

African comPanaies will also face the new problem of the withdrawal of major African oil markets, thereby reducing the number of suppliers in some countries.

Pana 07/07/2011