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- The Nigerian Airspace Management Authority (NAMA) has said that it will increase route charges
- The Managing Director of NAMA, Umar Ahmed Farouk, disclosed that the route charges will increase from N2000 to N18,000
- He also said the agency would hike its surveillance charges from N50,000 to N450,000 to cover energy and logistics costs
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Airspace Management Agency (NAMA) has disclosed that it will raise en route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight.
The agency also increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800% increase per extension to allow the agency to recover the cost of diesel and other logistics during the period.
Source: Getty Images
Nigerians to brace for fare hikes
Aviation experts say the development implies an imminent increase in airfares by domestic airlines to reflect the new increases.
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The Managing Director of NAMA, Umar Ahmed Farouk, disclosed this on Friday, July 26, 2024, at the League of Airports and Aviation Correspondent (LAAC) seminar in Lagos.
Reports say that in January, NAMA and the Nigerian Civil Aviation Authority (NCAA) held a strategic meeting with airline operators to review the N16,000 Terminal Enroute Navigational Charges.
The meeting tried to get the airlines’ understanding of the rate review, which the airlines agreed needed to be adjusted.
NAMA said it decided to ease its airspace surveillance and airport security cost, which could lead to high-cost increases in domestic and international airfares.
Airline operators warn of imminent fare increases
The NAMA boss stated that the industry needs very efficient pricing of products and services. It is essential for boosting affordability, driving competition, and improving operational efficiency.
Farouk stressed that the price for services must reflect the value of the services.
Legit.ng reported earlier that Airline operators in Nigeria (AON) have warned Nigerian travellers to brace for yet another increase in the price of local airline tickets across the country.
Obiora Okonkwo, the spokesman of AON, disclosed this, citing multiple taxation and exchange rates.
Travellers lament ticker racketeering in airports
Leadership reports that Okonkwo argued that airlines operating in Nigeria are overburdened by multiple taxation, saying the forex regime of about N1,605 to one dollar severely affects their operations.
He also stated that operators are forced to buy spare parts to fix their aircraft in dollars, even without increases in the cost of such spares abroad.
Coming at a time when air travellers are lamenting the activities of ticket racketeers in Nigerian airports, the move by NAMA could further put pressure on the industry, which is facing low patronage and fleet shortages.
FG moves to slash Air Peace, Dana, and other airfares by 50%
Legit.ng previously reported that the federal government is working on providing subsidies to airlines in the country to help reduce the high cost of air travel.
Festus Keyamo, the minister of aviation and aerospace development, is reported to have held a meeting with the Airline Operators of Nigeria (AON) on Friday, December 15, 2023.
Those present at the meeting are the President of AON, Dr Abdulmunaf Yunusa Sarina, his executive members, and other airline operators.
Source: Legit.ng
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