The Federal Airports Authority of Nigeria (FAAN) is to increase the passenger service charges on domestic and international flight tickets by 100 per cent from August 1, 2020.
It was gathered that the authority would increase the PSC on domestic flights from the current rate of N1,000 to N2,000 while PSC on international flights goes from $50 to $100, a development that would warrant a rise in airfares on local and international tickets.
FAAN’s Managing Director, Rabiu Yadudu, who made the agency’s position known in a letter to airlines said that the decision was based on the approval given by the Minister of Aviation.
Yadudu’s letter to all airlines was dated June 22, 2020, with reference FAAN/HQ/MD/18E/VOL.86/72. It had the title, ‘Implementation of the approved new passenger service charge effective August 1, 2020.
The approval from the minister was contained in a letter with reference FMT/FMA/COM/T/69, dated August 3rd, 2017.
Yadudu explained that the intention of FAAN was to improve and upgrade airports’ infrastructure across the country, among others.
He said while the authority had notified the aviation minister, it had engaged the regulator of the sector and other operators severally about its intention to hike PSCs.
Several engagements, according to the FAAN boss, prompted the delay, as approval had been given since over two years.
Yadudu said the last PSC reviews were done on May 1, 2011, and March 21, 2011, for domestic and international flight operations respectively.
He noted that in 2011, domestic PSC was increased from N350 to N1000, while that of international flights was raised from $35 to $50.
“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,” the FAAN boss stated.
He explained that Bi-Courtney Aviation Services Limited, operators of the Murtala Muhammed Airport 2 domestic terminal, had for years been charging N2,500 as its PSC.
He argued that an increase in PSCs by FAAN would afford the authority the needed funds to upgrade its facilities to accommodate new airlines including the anticipated national carrier.