Tuesday , March 21 2023

FAAN to increase passenger service charge by 100% from September 1

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Travellers using the airports should be ready to pay more as the Federal Airports Authority of Nigeria (FAAN) on Thursday disclosed that starting from September 1, 2020, Passenger Service Charge (PSC) will go up by 100 per cent.

Under the charge regime, domestic passengers who used to pay N1000 will now pay N2000, while international passengers within the Economic Community of West African States (ECOWAS) region will now pay $80 while others will pay $100.

Before the increment international passengers generally paid $50 as service charge.

FAAN’s Managing Director, Capt. Rabiu Yadudu, in a chat with reporters, said the increment was imperative in view of the loss recorded in the aviation sector.

According to him, the current revenue of the agency was down by 95per cent, hence the need to review the passenger charge.

He said: “Airport management is capital intensive. FAAN has not increased PSC since 2011, despite 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 has put at 12.82per cent.

“Besides, FAAN, until late 2019 was collecting the naira equivalent of PSC at an official rate of N305.50 – N344.38 to a dollar when airlines were collecting at subsisting market rate of about N362 to a dollar.

“It has, therefore, become imperative to review the PSC, from N1000 to N2,000 per passenger. This review which takes effect from September 1, 2020 has already been communicated to the airlines.

“The passenger service charge for domestic flight was N1000 but it will now be N2000. For an international flight, it was $50 for all but now, passengers within the ECOWAS region will be made to pay $80 while intercontinental passengers will be paying $100. So, the increment is by $50.

About Charles Igbinidu

Charles Igbinidu is a Public Relations practitioner in Lagos, Nigeria

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