FAAN Marks-Up Service Charge By 100 percent, New Price Regime Begins Sept. 1

The Federal Airports Authority of Nigeria (FAAN) has disclosed its intention to hike Passenger Service Charge (PSC) by 100 percent.

The Agency hinted that the intended new service charge according will take effect from September 1, 2020.

Following the present status, it is expected that domestic passengers who used to pay N1000 will now pay N2000 while international passengers within the ECOWAS region will pay $80 and others $100.

Meanwhile, in the present charge, international passengers generally pay $50 as service charge.

In its explanation, the agency said the increment is imperative in view of the losses recorded in the aviation sector. The agency reveals that the current revenue was down by 95 percent, hence the need to review the passenger charge.

Speaking, Thursday, the Managing Director of FAAN, Cap. Rabiu Yadudu said:

“Airport management is capital intensive. FAAN has not increased Passenger Service Charge (PSC) since 2011, despite all the huge capital investments at our airports.

“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 95percent. FAAN is a service delivery agency and if you are delivering service and your revenue is down by 95percent, 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 are 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.”