Quiet storm brews as FAAN announces PSC increment to N2000, $100 August 1

AS the Federal Airports Authority of Nigeria (FAAN) reveal its plan to increase Passenger service Charge (PSC) come August 1, 2020 the news may have shaken an already dazed industry as stakeholders have started reacting.

Nigerianflightdeck intercepted a letter signed by the managing director of FAAN, Captain Rabiu Hamisu Yadudu addressed to the Airline operators committee stating that it will increase the PSC from N1, 000 to N2000 for domestic airlines and US $50 to US$ 100 for international travel.

Recall, airlines are already complaining of an impending price hike due to planned removal of middle seats when flights resume and this new move seem counterproductive according to stakeholders.

The letter titled Implementation of the Approved New Passenger service Charge (PSC) Effective August 1, 2020 read in part,” I wish to inform you of our intention to commence implementation of the new Passenger service Charge (PSC) increment from N1, 000 (One Thousand Naira) to N2,000 (Two Thousand Naira) for PSC domestic and US$ 50 (Fifty Dollars) to US$ 100 (One Hundred Dollars) for international effective August 1, 2020

The FAAN boss explained the move,” This is premised on the approval for the increment given by the Minister of Aviation I the attached letter referenced FMT/FMA/COM/T/69  dated 3^rd August, 2017 which was sought with the intention to improve and upgrade the airport infrastructure among others.”

“We recently informed the Minister of Aviation of our intention to commence the implementation effective August 1, 2020;” the FAAN boss said.

According to Yadudu, the Airports managers have engaged the Nigeria Civil Aviation Authority (NCAA) and relevant stakeholders which had delayed the implementation from 2017 till date.

The FAAN boss went further to state that the cap on the value of PSC is simply outdated as the last review of PSC on domestic routes from N350 to N1000 and US$35 to US$50 dollars on the international route was on May 1, 2011 and March 21, 2011 respectively, all seven (7) years ago.

“This does not correlate with the prevailing economic situation and the index to meet with the needs of today and future growth of passenger traffic and airport development, most especially for the airport to upgrade post-COVID-19.”

The letter further referred that Bi-Courtney Aviation Services Limited operators of the MMA2  for years have been charging N2500 on its PSC and despite the operating PSC some domestic airlines still moved from the General Aviation Terminal (GAT) to the MMA2 because of FAAN’s inability to expand the GAT.

“This increase therefore affords FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier.”

Meanwhile, airlines and stakeholders have started to groan explaining that government plans to give a paltry palliative on one hand and siphon it with increased charges that may lead to passengers paying more on the other hand, a move that does not encourage post Covid-19 stability.