FAAN under pressure to raise passenger charge
- Agency’s revenue may rise by N16bn
There are indications that the Federal Airports Authority of Nigeria (FAAN) could begin the implementation of the proposed new Passenger Service Charge (PSC), as pressure on the authority by the Nigerian Union of Pensioners (NUP) in FAAN mounts.
But spokeswoman for FAAN, Mrs. Henrietta Yakubu, recently said the agency was yet to arrive at a new charge, as it is still consulting with relevant stakeholders on the matter.
Currently, FAAN charge each passenger on domestic route N1,000. But that the new rate could rise by 100 per cent, amounting to N8 billion if eight million passengers travelled domestically.
This could rise to N16 billion if the charge is doubled for the eight million passengers that travel domestically yearly.
For international travellers, the agency charge 50 dollars per passenger. Passenger Service Charge is collected by the airlines upon purchase of tickets and paid to FAAN after completion of the flight.
The charges are used to cover the cost of maintaining common areas in the passenger terminals, providing passenger information, maintaining security and ensuring that customers use the airport for comfort.
The charge was last increased in 2011 when the local currency was more than twice the current value and cost of operation was far lesser than what obtains currently.
In 2017, the Authority’s Managing Director, Saleh Dunoma, disclosed that it generated N38 billion from PSC from international passengers travelling out of the country.
According to him, airports across the world rely on non-aeronautical revenues such as retail concessions, car parking property and real estate, adding that global NAR accounts for 40 per cent of airports’ income.
Speaking with Woleshadarenews, chairman and secretary of NUP, Rasaq Ope and Emeka Njoku, called on the Minister of State for Aviation, Hadi Sirika, to, as a matter of urgency, order the implementation of the new passenger service charge in order to meet up with the current economic realities.
“We are aware of how much the private terminal is charging passengers and other customers and FAAN has not increased its passenger service charge in the last nine years,” they said. “It is based on that, that we call for the implementation of new charges to enable them meet the growing challenges of airport maintenance.”
They also urged Sirika to order all FAAN debtors to commence the settlement of debts owed the agency, adding that the minister had been so quiet on those owing FAAN, especially airlines and concessionaires.
According to them, aviation should be given proper attention, especially with the commissioning of new terminals across the country, adding that soon the revenue generated will not be able to take care of the overhead cost of the agency.
They disclosed that billions of naira was being owed FAAN by various concessionaires and airlines, among others, saying that the debts were crippling the operations of FAAN.
On the proposed carrying of firearms by FAAN aviation security personnel, NUP called for the creation of a special unit that will be in charge of the weapons.
While calling for the training and retraining of FAAN workers to meet the current trend of operations, the pensioners condemned undue interference from politicians in the running of the organisation, saying that it does not allow for growth.
“We don’t want FAAN to collapse and the minster must act fast,” they said. “We don’t need long talk because the Minister of State for Aviation, Hadi Sirika, has failed in the past three years. We ought to have a new national carrier, maintenance, repair and overhaul facilities, but nothing.
“We thought as a professional, by now things would have changed in aviation sector, but nothing has changed because the minister has failed. Where is Bilateral Air Services Agreement (BASA) fund for the past six years?
Besides, they called on the Federal Government to look into the stoppage of BASA fund and to let Nigerians know what went wrong.
“Last eight years you know the value of dollar to naira,” he said. “You know the cost of generating electricity; you know the cost of diesel.”
For the publisher of Aviation Safety Magazine, Alhaji Umar Abdulyekeen, any increment should be done with a percentage that will favour all parties.
According to Abdulyekeen, there was need to effect the increase as a result of recent transformation at the airports across the country.
“FAAN is right, but I think they should consider the people and the economy because FAAN might have sacrificed a lot of things, but it should be with the percentage that will go with all the stakeholders.”
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