The Tanzania Civil Aviation Authority (TCAA) has proposed a review of regulations to solve the ‘price war’ amongst ground handlers operating in the country.
A price cap has been suggested as one method of controlling the situation, which has seen handlers across Tanzania trade below market price in order to steal customers away from their competitors.
“During the stakeholders’ meeting on a review of the ground-handling regulations, the matter of price capping may be considered,” said acting director general of the Tanzania Civil Aviation Authority (TCAA), Daniel Malanga.
“We have prepared regulations for review, but we are still studying the industry to establish the facts on the possible presence of unfair competition.”
Current regulations do not permit the TCAA to set a price cap, although Malanga added that draft regulations would be passed on to the ministry of Works, Transport and Communication after discussions by stakeholders.
“Having multiple players on board without a price cap may end up causing a price war – thus eating into TAA earnings,” said Julius Ndyamukama, director general of the Tanzania Airports Authority (TAA).
He added that the TAA’s earnings are based on a percentage of ground handlers’ earnings.
