Nigeria: Airfares May Rise As FAAN Hikes Service Charge By 100%

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Airfares on domestic and international routes are set to rise as the Federal Airports Authority of Nigeria is to increase the passenger service charges on 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.

FAAN would also hike the PSC on international flights from $50 to $100, a development that would warrant a rise in airfares on local and international tickets.

Airline operators confirmed the development to our correspondent on Friday in Abuja, as they stressed that the hike in PSCs would definitely be passed to passengers.

Airlines collect the PSCs on behalf of FAAN when selling flight tickets to passengers.

FAAN’s Managing Director, Rabiu Yadudu, made the agency’s position on PSCs known in a letter to airlines.

He told the airlines 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 was titled ‘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 3, 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 several times about its intention to hike PSCs.

The several engagements, according to the FAAN boss, prompted the delay, as approval had been given since over two years.

— Punch

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