Federal Airports Authority of Nigeria (FAAN) has concluded plans to increase Passengers’ Service Charge (PSC) by 100 per cent.
The new charge regime scheduled for implementation effective August 1.
With the increase, passengers will be required to pay N2,000 as PSC. This is as against the previous N1000 for domestic flight.
Under the proposed arrangement, international passengers will have to cough out $100 as against the previous $50.
The Passengers’ Service Charge is one of the components factored into airfares by domestic international airlines.
skies on account of the debilitating effects of COVID -19.
The Managing Director of FAAN Capt Rabiu Yadudu contained this information in a letter. The letter was dated June 22, 2020.
Yadudu noted the authority recently notified the Minister of Aviation of its intention to commence implementation. He stressed on several occasions they had engaged the Nigerian Civil Aviation Authority (NCAA) and relevant stakeholders. This delayed the implementation from 2017 to date.
The FAAN boss disclosed the cap on the value of the PSC is simply outdated. He explained that the last review of the PSC was simply outdated.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.”
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