Following the shift of the resumption of International flights by the FG to September 5th, FAAN has made some few changes as well
According to report, the Airline Body has increased all passengers’ service charge fee by 100percent
This new change is to kick off by Monday, 1st of September 2020
The announcement was made on Thursday August 27th by FAAN Managing Director Cap. Rabiu Yadudu
who said 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 On FAAN increament 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.
“This increase by FAAN 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.
“The increase of PSC does not even assure
or guarantee us that we will be back to normal
but it is just the beginning.
This is just one aspect of the necessity
because we need to survive and keep delivering
and that is why we are increasing it.”
“You have to understand that almost every aspect of our operation is business
and in this modern-day, it is relative.
“If you look at it from the aspect of the passengers and airlines,
it is clearly not the most appropriate time
but if you look at it from the point of view of the service providers
that is about to be consumed by the pandemic and the economic situation,
then there is no better time for FAAN than this time
because it would have been worse if we just sit down and fold our arms.
“It is therefore worthy of note that the Federal Government
is increasing its direct deduction from FAAN to 40 per cent from 2021.
“With such deduction, the Authority
will have a shortfall of over N16billion on overhead cost.
The Authority is however engaging the federal government
to exempt her from this deduction.”