The Federal Airports Authority of Nigeria, FAAN, has concluded plans to increase Passenger Service Charge, PSC, by 100 percent, effective from August 1, 2020.
This was contained in a letter dated June 22, 2020, signed by the FAAN Managing Director, Capt. Rabiu Yadudu, and addressed to all airliners under the title: “Implementation of the approved new passenger service charge, PSC, effective August 1, 2020″. According to a letter with reference Ref: FAAN/HQ/MD/18E/VOL.86/72 and obtained by The Nation, the increment was approved by the Minister of Aviation since August 3, 2017.
The managing-director said the increment was sought with the intention to improve and upgrade airports’ infrastructure among others. “The new charge regime scheduled for implementation effective August 1 requires passengers to pay N2,000 as PSC as against N1000 for 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,” Mr Yadudu said.
He also noted that on several occasions, they had engaged the Nigerian Civil Aviation Authority, NCAA, and relevant stakeholders which delayed the implementation from 2017 to date. Mr Yadudu further explained that the cap on the value of the PSC is simply outdated, explaining the last review of the PSC was simply outdated.
According to him, the last review of PSC on domestic routes from N350 to N1000 and from $35 to $50 on the international route was on May 1, 2011 and March 21, 2011 respectively. “This doesn’t 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, especially for an upgrade to post COVID-19 standards,” he stated.
He also recalled that the Bi-Courtney Aviation Services, operators of the MM2 has for years charged N2,500 as its PSC. Mr Yadudu also lamented that 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 said.