…As NCAA warns airlines not to start operation
Passengers travelling through Nigerian airports may be charged higher fares as the Federal Airports Authority of Nigeria (FAAN) has concluded plans to increase Passenger Service Charge (PSC) by 100 per cent.
The new charge regime scheduled for implementation effective August 1, 2020 requires passengers to pay N2,000 as PSC up from the old charge of N1000 for domestic flights.
Under the proposed arrangement, international passengers will have to cough up $100 as against $50 previously.
The PSC is one of the components factored into air fares by both domestic and international airlines.
Watchers believe that the new arrangement will trigger a rise in fares at a time the industry is struggling to get passengers return to the skies on account of the debilitating effects of COVID -19.
The Managing Director of FAAN, Capt Rabiu Yadudu, 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 with reference number FMT/FMA/COM/T/69, dated August 3, 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 its implementation since 2017.
The FAAN boss disclosed that the cap on the value of the PSC is simply outdated, explaining that the last review of the PSC was simply outdated.
According to Yadudu, the last review of PSC on domestic route from N350 to N1,000 and from $35 to $50 on the international route was on May 1, 2011 and March 21, 2011 respectively.
He said: “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.”
Meanwhile, the Nigeria Civil Aviation Authority (NCAA) has cautioned domestic airlines to desist from violating restart guidelines rolled out by the regulator, insisting that they have not been authorized to carry out test flights.
Its Director-General, Capt Musa Nuhu, said shakedown flights already carried by two carriers – Air Peace and DANA Air – were a gross violation of the protocols rolled out for the restart of operations.
Nuhu disclosed this during a webinar.
He said the date for the reopening of the airspace to commercial flights would be announced next week, while simulation flights are expected to be conducted on Saturday.
“Airlines must make our work easier. No airline was authorised to do test run flight. It is creating problems for us,” he said.
The Chairman of NCAA COVID-19 committee, Mr. Godwin Balang, told participants that the preparedness levels of Owerri and Port Harcourt airports are hampering the industry restart plan.
Balang said Lagos, Abuja and Kano airports scored over 85 per cent, while Port Harcourt and Owerri scored less than 40 per cent in the latest report.