Air Peace, Rano Air, Others to Crash Fares as FG Suspends 800% Increase in Flight Charges
- The Nigerian Airspace Management Authority has suspended the planned hike in aviation charges by 800%
- The minister of Aviation and Aerospace Management, Festus Keyamo, ordered the suspension and called for more negotiations
- The agency had disclosed plans during a recent conference to hike navigational charges by 800% to meet service costs
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The Nigerian Airspace Management Authority (NAMA) has backtracked on its initial plan to increase navigational charges by 800%.
The decision was made after the minister of Aviation and Aerospace Management, Festus Keyamo, recognised Nigeria's current economic challenges.
Source: Getty Images
Keyamo orders suspension of charges
NAMA’s director of Public Affairs and Consumer Protection, Abdullahi Musa, disclosed this in a statement.
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According to reports, Keyamo disclosed the need for further consultation before implementing any changes, stressing the importance of being sensitive to Nigerians' plight in the face of economic challenges.
Legit.ng earlier reported that NAMA’s managing director, Farouk Ahmed Umar, hinted at a conference in Lagos on Friday, July 26, 2024, that the agency would hike the charges following increased service costs in the airports.
NAMA’s proposed hike was to cover service costs
The NAMA boss disclosed that it would raise en route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight.
The agency also increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800% increase per extension to allow the agency to recover the cost of diesel and other logistics during the period.
Nigerians to brace for fare hikes
Aviation experts say the development implies an imminent increase in airfares by domestic airlines to reflect the new increases.
Reports say that in January, NAMA and the Nigerian Civil Aviation Authority (NCAA) held a strategic meeting with airline operators to review the N16,000 Terminal Enroute Navigational Charges.
The meeting tried to get the airlines’ understanding of reviewing the rate, which the airlines agreed needed to be adjusted.
NAMA said it decided to ease the cost of airspace surveillance and airport security, which could lead to high increases in domestic and international airfares.
Airline operators warn of imminent fare increases
The NAMA boss stated that the industry needs very efficient pricing of products and services. It is essential for boosting affordability, driving competition, and improving operational efficiency.
Farouk stressed that the price for services must reflect the value of the services.
Airline operators lament hike in charges
Legit.ng reported earlier that Airline Operators in Nigeria (AON) had warned Nigerian travellers to brace for yet another increase in the price of local airline tickets across the country.
Obiora Okonkwo, the spokesman of AON, disclosed this, citing multiple taxation and exchange rates.
In his address, Farouk highlighted the significant economic pressures the aviation industry faces, exacerbated by global financial volatility, fuel price hikes, and currency instability.
He outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.
States with the highest flight rates
Legit.ng previously reported that the cost of domestic flight tickets spiked past N95,000 in many Nigerian states in June 2024, averaging N97,500 in Rivers and Kano and hitting N96,433.33.
Data from the National Bureau of Statistics (NBS) June Transport Watch show that fares rose above N95,000 in Ogun and Enugu states.
The NBS report detailed airfares for routes across the 36 states and the Federal Capital Territory.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
