FAAN : Passenger service charge raised by 100%

Passenger service charge raised by 100%

Passenger service charge raised by 100%

FAAN : Passenger service charge raised by 100%

Passenger service charge will increase by 100% starting from September 1, 2020, as announced by the Federal Airports Authority of Nigeria (FAAN).

This was disclosed by Cap. Rabiu Yadudu, the Managing Director of the agency.

He said that the decision was influenced by the loss recorded in the aviation sector due to the Coornavirus pandemic.

Following the review of the PSC, 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.

Yadudu 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.

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This increase is just a matter of necessity. If it is not necessary for us to increase, you will never see this increase.

Secondly, our revenue is down by over 95perc ent. FAAN is a service delivery agency and if you are delivering service and your revenue is down by 95per cent, what do you do?

You will do whatever you can legitimately to continue to deliver the service with the same level of quality.”

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