As the country prepares for the resumption of flights, the Federal Airports Authority of Nigeria (FAAN) has announced an increase in the Passenger Service Charge (PSC).
The agency noted that from August 1, 2020, the new PSC will be N2,000 instead of the previous N1,000 for domestic flight operations, while international passengers will pay $100 instead of the $50 they previously pay.
In a circular marked Ref: FAAN/HQ/MD/18E/VOL.86/72, the Managing Director of FAAN, Mr abiu Yadudu, explained that the decision was done 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.
In the letter Implementation of the approved new passenger service charge (PSC) effective August 1, 2020, and sent to all airlines, Mr Yadudu noted that FAAN 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.
The FAAN boss disclosed that the cap on the value of the PSC is simply out-dated. According to him, the last review of PSC on the domestic route from N350 to N1000 and from $35 to $50 on the international route was on May 1, 2011, and March 21, 2011, but due to the recent changes brought about by the COVID-19 pandemic, it had to be implemented.
“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,” he added.
Mr Yadudu also asked for the airlines’ support for the implementation of the reviewed PSC tariffs of N2,000 and $100 on the domestic and international routes respectively to ensure that the cost associated is reasonably recovered as well as improve on the dilapidating and decaying airport infrastructure and obsolete equipment.
The implication of this new development means there will be an increase in airfare by airlines locally and international which will further make air travel expensive in the country, at a time many people are finding it tough to travel by air.