Nigerians To Pay More For Flights As FAAN Requests Increased Passenger Service Charge

Nigerians might resume to an expensive flight price as the Federal Airports Authority of Nigeria (FAAN) is requesting for the increase of passenger service charge. According to the prices seen by AllNews, the passenger service charge will double more than it did in 2011 when the current price was reviewed.

Although, the price hike is still a proposal, the FAAN managing director, Rabiu Yadudu, is already soliciting for the support of airline companies to ensure the implementation of the new passenger service charge that is being proposed, a letter issued on June 22, 2020, revealed.

It was stated that the proposed passenger service charge has already been approved by the Minister of Aviation, Hadi Sirika, in a letter dated August 3, 2017, but due to consultation with aviation stakeholders, the new charge hasn't been implemented. But it is expected to be effective after next month, on August 1, 2020.

The New Air Fare Price Being Proposed

The new passenger service charge was increased from the current N1,000 to N2,000 for domestic flights, while the service charge for international flights was increased to $100 from $50. This is double the current prices which have been effective since 2011. FAAN said the current charges don't reflect the current economic situation of the aviation sector.

The current charges for the passenger service charge were changed from N350 to N1,000 for domestic flights, while international flights charge was raised from $35 to $50 in 2011. FAAN said these prices are now outdated and needs to be reviewed.

Factors That Calls For The Price Change

Yadudu said the current charges won't meet the current needs and prevent FAAN from achieving its passenger traffic growth in the future. According to Yadudu in a The Cable report, there's need to upgrade the facilities in the airport to enable new airlines come in, as some of the airlines are abandoning the General Aviation Terminal for MM2 - which is being operated by Bi-Courtney Aviation Service - due to its lack of expansion.

“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." Yadudu said.