FAAN Increases Passenger’s Service Charge

June 26, 2020July 30, 2020

The Federal Airports Authority of Nigeria (FAAN) increases Passenger’s Service Charge (PSC) to afford FAAN the needed funds to upgrade its facilities.

The new charge regime scheduled for implementation effective August 1 requires passengers to pay #2,000 as PSC as against #1000 for domestic flight.

Under the proposed arrangement, international passengers will have to pay $100 as against the previous $50.

The PSC is one of the components factored into air-fares by domestic and international airlines.

Managing Director of FAAN Capt Rabiu Yadudu in a letter dated June 22, 2020 with reference Ref: FAAN/HQ/MD/18E/VOL.86/72 , titled, “Implementation of the approved new passenger service charge (PSC) effective August 1, 2020″ to all airlines stated the decision was premised on approval by the Minister of Aviation in a letter referenced FMT/FMA/COM/T/69 dated August 3rd, 2017, which he said was sought with the intention to improve and upgrade airports infrastructure among others.

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Yadudu noted that the authority recently notified the Minister of Aviation of its intention to commence implementation, stressing that on several occasions, they had engaged the Nigerian Civil Aviation Authority (NCAA) and relevant stakeholders which delayed the implementation from 2017 to date.

According to Yadudu, the last review of PSC on domestic route from #350 to #1000 and from $35 to $50 on the international route was on May 1, 2011 and March 21, 2011 respectively.

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

“You will also wish to recall that Bi-Courtney Aviation Services, operators of the MM2 has for years been charging #2,500 as its PSC. Despite the operating PSC, some airlines recently moved operations from the General Aviation Terminal (GAT) handled by FAAN to the MMA2 because of the inability of FAAN to expand GAT. This increase will, therefore, afford FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier.”

Culled from – The Nation

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