‘Multiple levies, not airlines, driving high airfares’

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The Group Managing Director of Finchglow Holdings, Bernard Bankole, has attributed the sharp rise in airfares across the country to multiple charges imposed by regulatory and government agencies rather than airline operators.

Speaking at the just-concluded annual media engagement of Finchglow Holdings in Lagos, Bankole explained that although many travellers blame airlines for high ticket prices, most of the cost burden comes from statutory levies collected on behalf of agencies such as the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, the Nigerian Airspace Management Agency, and the Nigerian Safety Investigation Bureau.

He said, “Air tickets are expensive here, yes, it’s expensive in Nigeria. When you look at the ticket price, let me say N1,000 just for analysis, N450 goes to charges. So the airline is just collecting on behalf of everybody. Only N550 goes to the airline. The NCAA, FAAN, NSIB, and NAMA take some part of the money. Those are the things putting pressure on the cost of tickets.”

Bankole appealed to the government to review and reduce these levies, warning that the cumulative cost is ultimately transferred to passengers. He added that the financial strain is further worsened by the high number of federal airports that struggle to generate sufficient revenue. Punch