Air passengers to pay more as FAAN increases  service charge by 100% 


Chinazor Megbolu    |   

The Federal Airports Authority of Nigeria (FAAN), has increased passenger service charge by  100 per cent.

The Managing  Director, Mr. Rabiu Yadudu, announced this during a news conference in Abuja, saying that domestic airlines in Nigeria will now pay N2,000 as passenger service charge with effect from September 1, 2020.

The charge indicates a 100 per cent increase from the N1,000 presently being paid by airlines.

He also hinted that the international passengers within the Economic Community of West African States (ECOWAS) region will pay $80 while others will pay $100 under the revised service charge.

Prior to the review, international passengers paid a flat rate of $50 as service charge.

Yadudu, however, explained the increase became necessary as the current rates are no longer realistic.

According to him; “FAAN has not increased Passenger Service Charges (PSC) since 2011 in spite of all the huge capital investments at our airports.

“The current PSC charge of N1,000 is no longer realistic as it does not correlate with realities of cost-related inflation rate, which the CBN put at 12.82 per cent.

“Besides, FAAN, until late 2019 was collecting the naira equivalent of PSC at an official rate from N305.50 to N344.38 to a dollar”.

He further  disclosed that ICAO’s recommendation in ‘DOC.9562’ shows that revenue generated by airports be transparently re-invested wholly in operating and developing airport facilities.

Yadudu maintained that the Federal Government will increase its direct deduction from FAAN to 40 per cent, adding that such move would make FAAN have over N16 billion shortfall on overhead cost.

He urged stakeholders, airport users and the general public to bear with the agency as it is laden with so much overhead cost of operation.

Yadudu averred that it would be necessary to churn out new advisories for airlines and air travellers in preparation for the resumption of scheduled international airlines into Nigeria.

He also revealed that government would sensitise the general public as soon as new advisories were ready.

© 2020, maritimemag. All rights reserved.

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