Taliban eye on overflight fees to boost revenue

The U.S. aviation authority eased restrictions on Afghanistan’s airspace in 2023
 

Taliban government looking to overflight fees to enhance income 

High above Kabul, Afghanistan’s cash-strapped Taliban government has discovered a potentially lucrative revenue source: the country’s airspace.

As missile exchanges between Israel and Iran disrupted flight paths earlier this year, Afghan skies emerged as a safer and faster alternative for airlines — for a flat $700 overflight fee, industry insiders say.

The U.S. aviation authority eased restrictions on Afghanistan’s airspace in 2023, two years after the Taliban seized power, allowing commercial flights to resume overhead.

Airspace that had long been avoided due to decades of conflict and political instability suddenly became viable, enabling carriers to shorten routes and save on fuel costs.

But it wasn’t until the 12-day Iran-Israel war in June that the route gained significant traction, offering the Taliban government the chance to earn millions.

 

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With Iranian and Iraqi airspace largely closed and Middle Eastern routes unpredictable, airlines diverted flights over Afghanistan.

“Flying over Afghanistan carries virtually zero risk,” said Xavier Tytelman, a France-based aerospace and defense consultant. “It’s like flying over the sea.”

Daily flights over Afghanistan jumped from around 50 in May to nearly 280 after June 13, according to tracking site Flightradar24. On many days since, more than 200 planes traverse Afghan airspace — equivalent to roughly $4.2 million per month, though precise figures are unclear as the authorities do not publish budgets and have declined to comment.

Opaque Revenue Streams

While not a massive source of government income, overflight fees provide a much-needed boost amid a humanitarian crisis and war-battered economy. According to the UN, about 85% of Afghans live on less than $1 a day, and nearly one in four young adults is unemployed.

The World Bank noted that overflight fees contributed to modest economic growth in 2024, even before airlines increasingly routed through Afghanistan to bypass Iran.

International carriers returned in 2023, with Turkish Airlines, flydubai, and Air Arabia flying almost daily from Afghan airports. Others, including Singapore Airlines, Air France, Aeroflot, Air Canada, and Swiss Air, traverse Kabul, Mazar-i-Sharif, or Kandahar airspace, balancing practicality against lingering risks.

Tytelman cautioned that Afghanistan remains challenging for emergency landings due to limited spare parts and fragile healthcare infrastructure. Yet, he observed, “planes are landing in Kabul every day.”

Airlines have been reluctant to detail payments to the Taliban government, which remains isolated internationally in part due to its restrictions on women. Afghan aviation authorities did not respond to requests for comment on overflight fees or payment processes.

“Companies are not formally prohibited from trading with Afghanistan, as U.S. sanctions target only certain Taliban officials,” a World Bank expert told AFP on condition of anonymity. “But some abstain out of fear of association with the ruling power.”

Industry insiders, also speaking anonymously, said the $700 fees are typically routed through third-party intermediaries, such as UAE-based GAAC Holding, which manages Afghan airports, or overflight brokers. Some airlines may now pay directly as diplomatic ties with the Taliban gradually develop.

 

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Strengthening Authority

To date, only Russia has formally recognized the Taliban authorities, who face frozen assets, sanctions, and a fragile banking sector.

Against these challenges, airspace revenue “is helpful for the cash-strapped current administration,” said Sulaiman Bin Shah, former deputy minister of industry and commerce under the ousted government.

But Bin Shah emphasized the significance goes beyond money. Overflight activity helps normalize Taliban governance, reinforcing their control over state functions and projecting the image of a functioning administration, even without formal international recognition.

“So while the income itself is modest, it plays a meaningful role in the government’s economic narrative and political positioning,” he said.

Source: Reuters

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