The Federal Airports Authority of Nigeria (FAAN) is set to increase passenger service charge from N1000 to N2000 for the domestic carriers and $50 to $100 for the international airlines beginning August 1, 2020.
The managing director of FAAN, Capt. Rabiu Yadudu conveyed this in a letter marked: FAAN/HQ/MD/18E/VOL.86/72 Implementation of the approved new passenger service charge (PSC) effective August 1, 2020’ and addressed to the airlines.
Yadudu said in the letter dated June 22, 2020 that the increase was premised on the approval given by the minister of aviation in a letter referenced FMT/FMA/COM/T/69 dated August 3rd, 2017 which he said was sought with the intention to improve and upgrade infrastructure at the airports.
The letter read in part: “I wish to inform you of our intention to commence implementation of the new Passenger service Charge (PSC) increment from N1, 000 (one thousand naira) to N2,000 (two thousand naira) for PSC domestic and US$ 50 (fifty dollars) to US$ 100 (one hundred dollars) for international effective August 1, 2020
“This is premised on the approval for the increment given by the Minister of Aviation I the attached letter referenced FMT/FMA/COM/T/69 dated 3rd August, 2017 which was sought with the intention to improve and upgrade the airport infrastructure among others.”
“We recently informed the minister of aviation of our intention to commence the implementation effective August 1, 2020;” said Yadudu.
The managing director pointed out that the current tariff is simply outdated recalling that the last review of PSC on domestic routes from N350 to N1000 and from $35 to $50 on the international routes was on May 1, 2011 and March 21, 2011 respectively.
“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,” he said.
Besides, Yadudu said FAAN’s closest competitor, Bi-Courtney Aviation Services Ltd which operates MMA2 has since increased the PSC to N2500.
‘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.
It is feared that the implementation of the new tariff regime would increase the cost of air travel as the airlines would pass the burden to the passengers.
