Airport passengers will be in for difficult times as the Federal Airports Authority of Nigeria, FAAN has concluded plans to increase Passenger Service Charge, PSC, by 100 percent.
The new charge regime scheduled for implementation effective August 1, 2020, requires passengers to pay N2,000 as PSC as against N1000 for the domestic flight.
Under the proposed arrangement, international passengers will have to cough out $100 as against the previous $50.
The PSC is one of the components factored into airfares by domestic international airlines.
Investigations by The Nation on Friday, June 26, 2020, revealed the new arrangement will trigger a rise in fares at a time the industry is struggling to get passengers to return to the skies on account of the debilitating effects of COVID -19.
Rabiu Yadudu, the managing director of FAAN in a letter dated June 22, 2020, with reference Ref: FAAN/HQ/MD/18E/VOL.86/72 , titled, “Implementation of the approved new passenger service charge, PSC, effective August 1, 2020″ to all airlines stated the decision was premised on approval 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.
Yadudu noted the authority recently notified the Minister of Aviation of its intention to commence implementation, stressing on several occasions they had engaged the Nigerian Civil Aviation Authority, NCAA, and relevant stakeholders which delayed the implementation from 2017 to date.
The FAAN boss disclosed the cap on the value of the PSC is simply outdated, explaining the last review of the PSC was simply outdated.
According to Yadudu, 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, respectively.
His words: “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.”
Source: The Nation
