FAAN increases passengers service charge by 100%

The Federal Airports Authority of Nigeria, FAAN, has announced a 100 per cent increase in Passengers Service Charge, PSC. The agency has increased PSC from N1,000 naira to N2,000 naira for domestic travellers and international travellers are to pay $100 dollars instead of $50 dollars effective 1st August 2020.

According to the agency, the increment will enable FAAN to “improve on the dilapidated and decaying airport infrastructure and obsolete equipment.”

The increment and intention to implement the new charges were communicated to the Airline Operators Committee in a memo titled: Implementation of Approved New Passenger (PSC) Effective 1st August 2020.

According to the memo dated 22nd June and signed by the Managing Director FAAN, Captain Hamish Yadudu,z” the implementation of the new PSC is premised on the approval given by  the Minister of Aviation in the attached letter referenced  FMT/FMA/COM/T/69 dated 3re August 2017,  which was sought with the intention to improve and upgrade the airport infrastructure among others.”

Yadudu also said, “We recently notified the Honorable Minister of Aviation of our intention to commence the implementation effective 1st August 2020.”

The memo read, “Suffice to mention that on several occasions, we had engaged NCAA and relevant stakeholders which delayed the implementation date. Some of the engagement are as follows: Setting up an in-house committee to come up with strategies for smooth implementation, Sensitization of the general public (press, etc), Engagement of stakeholders, airlines, etc.”

As the review of the PSC on the domestic route from N350 to N1,000 and from $35 to $50 on the international route was on May 1st, 2011 and 21st March 2011 respectively (NINE YEARS AGO). This does not correlate with the prevailing economic situation and the index to meet the needs of today and future growth in passenger traffic and Airport Development most especially for the Airport to upgrade to post COVID-19 standards.”

He added, “You will wish to recall that Bicourtney Services operators of the MM2 have for years been charging N2,500 as its PSC. Despite the operating PSC, some airlines recently moved operations from the General Aviation Terminal (GAT). This increase will, therefore, afford FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated National carrier.