Nigeria's leading finance and market intelligence news report.

Air travel to cost more as FAAN raises Passenger Service Charge in August

Domestic and international air travel would cost more as the Federal Airports Authority of Nigeria (FAAN) will on August 1, 2020 begin the implementation of new Passenger Service Charge (PSC) increment from  N1000 to N2000 for domestic flight operations and  from the former $50 to $100 for international passengers.

Experts say this will lead to an increase in air fare by airlines on both route segments and  make travel more difficult in the country at a time many people are finding it tough to travel by air.

Rabiu Yadudu, Managing Director of FAAN,  in a letter dated June 22, 2020 with reference Ref: FAAN/HQ/MD/18E/VOL.86/72 , titled, “Implementation of the approved new passenger service charge (PSC) effective August 1, 2020 and sent to all airlines stated that the decision was premised on the approval  given by the Minister of Aviation in a letter referenced FMT/FMA/COM/T/69 dated August 3rd, 2017 which he said was sought with the intention to improve and upgrade airports infrastructure among others.

Yadudu noted that the authority recently notified the Minister of Aviation of its intention to commence the implementation effective August 1, 2020, stressing that on several occasions they had engaged the Nigerian Civil Aviation Authority (NCAA) and relevant stakeholders which he said delayed the implementation from 2017 to date.

He disclosed that the cap on the value of the PSC is simply outdated, explaining that the last review of the PSC is simply outdated.

According to Yadudu, the last review of PSC on domestic route from N350 to N1000 and from $35 to $50 on the international route was on May 1, 2011 and March 21, 2011.

“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.

‘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.”

Yadudu sought the airlines’ support for the implementation of the reviewed PSC tariffs of N2000 and $100 on the domestic and international routes respectively effective August 1, 2020 to ensure that the cost associated is reasonably recovered as well as improve on the dilapidating and decaying airport infrastructure and obsolete equipment.

Get real time updates directly on you device, subscribe now.

Comments are closed.