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Air fare may increase as FAAN proposes increased passenger service charge

Air fare may increase as FAAN proposes increased passenger service charge
June 26
13:05 2020
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The Federal Airports Authority of Nigeria (FAAN) says it is considering an increase in the passenger service charge.

In a June 22 letter, Rabiu Yadudu (pictured), FAAN managing director, asked for the support of airlines in implementing the reviewed passenger service charge.

According to the letter, the reviewed charges are N2,000 from the current N1,000 for domestic flights and $100 from $50 for international flights.

Yadudu said the rates, which would be effective from August 1, 2020, are premised on the approval given by Hadi Sirika, the minister of aviation, in a letter dated August 3, 2017.

The new charges, he said, was sought with the intention to improve and upgrade airports infrastructure among others adding that various stakeholders including the Nigerian Civil Aviation Authority (NCAA) have been consulted since 2017 which has delayed implementation.

Yadudu said the cap on the value of the PSC is “simply outdated” since the last review was carried out in 2011.

At the time, PSC on domestic was reviewed from N350 to N1,000 for domestic flights and from $35 to $50 for international flights.

“This does not correlate with the prevailing economic situation and the index to meet the needs of today and future growth in passenger traffic by FAAN and airport development, most especially for the airport upgrade to post COVID-19 standards,” Yadudu said.

“You will also wish to recall that Bi-Courtney Aviation Services, operators of the MM2 has for years been charging N2,500 as its PSC.

“Despite the operating PSC, some airlines recently moved operations from the General Aviation Terminal (GAT) handled by FAAN to the MMA2 because of the inability of FAAN to expand GAT.

“This increase will therefore afford FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier.”

Henrietta Yakubu, FAAN spokesperson, also told TheCable on Friday that the review is still a proposal.

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