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How Nigeria Can Curb High Airfares On International Routes

Airfare Hike Looms As NAMA Increases Charges By 800%

4 months ago
1 min read

Air passengers may be in for another round of increase in airfares as the  Nigerian Airspace Management Agency (NAMA), announces plans to hike charges  for en-route navigation and the extension of hours of service to airlines.

Managing Director of NAMA, Umar Ahmed Farouk, who disclosed this on Friday, at a seminar organised by the League of Airports and Aviation Correspondent (LAAC) in Lagos, said  en-route navigational charges will be increased from N2000 and N6,000 to N18,000 and N54,000 per flight, while charges for the extension of hours of service to airlines will move from N50,000 to 450,000, representing 800 per cent increase per extension.

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According to Farouk, the increase is to enable NAMA to recover the cost of diesel and other logistics during the period of extension.

Observers have expressed concerns that the hike in charges by the airspace agency would lead to increase in airfares by the airlines both on domestic and international routes.

Justifying the service charge increase, the NAMA managing director said the agency needs funds to finance its activities and render efficient services in the aviation industry.

“The Nigerian Airspace Management Agency relies on statutory fees for the management of the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community, without these funds NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We majorly generate these funds through the airline companies,”  Farouk stated.

READ ALSO: How Nigeria Can Curb High Airfares On International Routes

The airspace agency’s head stated that the cost of many things including flight ticket, had gone up by over 1000 per cent yet it was still charging very low.

“Currently, our unit rate for international flights charged for service provision is about $70, domestic flights are charged 6,000 naira. While NAMA recognises the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like training. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe.

“Even though most costs in the economy have increased by more than 1,000 per cent, NAMA has proposed to increase its fees by 800%.

“The new rates for en-route and terminal navigation charges are to be reviewed from 2,000 and 6,000 Naira to N18,000 and N54,000 per flight. Also, the extension of hours of service is to be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension.”

Continuing, he said: “The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). While international flights pay in US dollars, domestic flights pay in the Nigerian currency.”

 

victor ezeja
Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.


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