By Adekunle Adeniyi/TnTv Network
The Federal Airports Authority of Nigeria (FAAN) has increased
the Passenger Service Charge (PSC), from N1000 to N2,000 per passenger. The Managing Director (FAAN), Capt Rabiu Yadudu disclosed this during a press conference at
the corporate headquarters of the Authority in Abuja, on Thursday.
Yadudu said this was due to the Federal Government increasing it’s direct deduction from FAAN to 40% from 2021 which became imperative to review the Passenger Service Charge that has already been communicated to airlines.
‘‘you would recall that the Federal Government has continued to make massive investment in the aviation sector. Governments effort to renew the nation’s dilapidated airport infrastructure and ensure safety in the industry has come at a very huge cost. As you all know, some of the five new terminals in our international airports have been completed while others are at advanced stages of completion. Apart from other efforts to reposition the sector, government has been re-constructing some airport runways to ensure safety.
Airport management is capital intensive. FAAN has not increased Passenger Service Charge (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 12.82%. Besides, FAAN, until late 2019 was collecting the naira equivalent of PSC at an official rate of H305 50#344 38 to a dollar when airlines were collecting at subsisting market rate of about #362 to a dollar.
It should be noted that ICAO s recommendation in Doc 9562 stipulates that revenue generated by airports be transparently re-invested wholly in operating and developing airport facilities
It is also worthy of note that the federal government is increasing it’s direct deduction from FAAN to 40% from 2021 With such deduction, the Authority will have a shortfall of over N16b on overhead cost. The Authority is however engaging the federal government to exempt her from this deduction it has, therefore become imperative to review the Passenger Service Charge (PSC), from N1000 to N2,000 per passenger. This review which takes effect from 1st September, 2020, has already been communicated to the airlines.
We therefore implore stakeholder, airport users and the general public to bear with us as the FAAN is laden with so much overhead cost of operation.’’ Yadudu Said
The Federal Airports Authority of Nigeria Boss also hinted press men on the need for the New Corporate Headquarters in Abuja, while urging travellers to follow safety protocols as recommended by the World Health Organisation (WHO).
‘‘As you are aware, we moved our Corporate Headquarters from Lagos to the Federal Capital Territory recently. That
development was necessary because Abuja is the seat of government and so there’s need to increase effective and efficient coordination in the running of the sector.
May I use this opportunity to appreciate your commitment in helping us publicize our recent policies and protocols for air travellers, in the wake of the COVID-19 pandemic. We are glad to note that the new protocols have been working almost
seamlessly. The cooperation of the air travellers has been particularly impressive. We shall continue to urge all airport users to comply with the new policies and help keep the traveling public, and our nation, safe and healthy. We
shall continue to review and update our COVID-19 protocols in line with the updates from the World Health Organisation (WHO). Together, the world would join forces and overcome this pandemic. As we prepare for the resumption of scheduled international flights into the country, it may be necessary to roll out new advisories for airlines and air travellers. As soon as these are ready, we would communicate same to the
general public.’’ The Captain Said