South Sudan's dollar payment challenges for Sudanese carriers

• The Civil Aviation Authority of South Sudan collects all aviation fees in US dollars.
• This system impacts Sudanese carriers operating regular flights to Juba.
• Airlines need to maintain constant dollar liquidity to settle government fees at Juba International Airport.
• The decision is based on difficulties faced by banks in providing local currency liquidity.
• While some fees were increased in April 2023, the South Sudan Civil Aviation Authority announced a comprehensive reduction in various aviation charges in February 2026, which may affect operational costs for Sudanese carriers.

With banks facing difficulties providing local currency liquidity, airlines will now be required to maintain constant dollar liquidity to settle government fees at Juba International Airport.

The decision by the Civil Aviation Authority of South Sudan to collect all aviation fees in US dollars has been in effect for some time, and while it continues to impact Sudanese carriers operating regular flights to Juba, the claim of increasing operational and financial pressures due to a recent decision is outdated. According to Ibrahim Adlan, a former director of the Sudanese Civil Aviation Authority, this move will directly impact Sudanese carriers. With banks facing difficulties providing local currency liquidity, airlines will now be required to maintain constant dollar liquidity to settle government fees at Juba International Airport. This added complexity comes amidst Sudan's economic challenges, where revenues from domestic flights are typically earned in local currency.

The decision by the Civil Aviation Authority of South Sudan to collect fees in US dollars is based on the difficulties faced by banks in providing liquidity in the local currency. This move has significant implications for airlines operating in the region, as they will need to adapt to a payment system that requires constant dollar liquidity. The regulation aims to standardize aviation fees and ensure compliance with international standards. While some fees were increased in April 2023, the South Sudan Civil Aviation Authority announced a comprehensive reduction in various aviation charges in February 2026, which could alleviate some operational costs for Sudanese carriers.

The dollar-based payment system by the Civil Aviation Authority of South Sudan has far-reaching implications for Sudanese airlines. Lawyers advising these airlines should be aware of potential compliance exposures related to currency exchange and payment processing. While the system initially led to increased operational and financial pressures, the recent fee reductions in February 2026 may impact the competitiveness of Sudanese carriers in the region differently. As a result, it is essential for airlines to carefully assess their financial capabilities and adjust their business strategies accordingly.

Lawyers advising Sudanese airlines should watch for potential compliance exposures related to currency exchange and payment processing, as the new dollar-based payment system may lead to increased operational and financial pressures.

Source: Original reporting via Sudan Tribune