Reviewing Ghana's Domestic Airport Passenger Service Charge (APSC): Projected Outcomes and Stakeholders' Responses
Domestic travel passenger service charge at airports found inadequate, claims GACL (Georgian Airports Chamber of Commerce and Industries)
Since 2010, Ghana's domestic air travelers have paid a fixed GH¢5 Airport Passenger Service Charge (APSC) per passenger. A call for an immediate review of this static charge has been echoed by Mrs. Pamela Djamson-Tettey, the Managing Director of Ghana Airports Company Limited (GACL), due to escalating operational costs. Here's a breakdown of the current APSC situation, its implications, and industry stakeholders' responses:
Present Scenario
- Unchanged Charge: Over a decade, the APSC has remained stagnant at GH¢5 without any revision, sparking concerns about its sufficiency.
- Review Necessity: The call for a review comes from the significant operational costs that existing airports face, particularly after their renovation.
Potential Fallouts
- Insufficient Revenue: The lack of adjustment in the APSC might lead to financial difficulties in maintaining airport infrastructure and services.
- Average Travel Experience: The inadequate revenue inflow may affect the quality of services provided to passengers.
Consequences for Domestic Airlines
- Price Adjustments: In case of an increased APSC, airlines might need to revise their fares to match the new costs, influencing the affordability of domestic flights.
- Competitive Edge: Enhanced airport services thanks to higher APSC could make Ghana's domestic air travel less cost-competitive with other regions.
Event Recap: AviationGhana Stakeholders Meeting
- Post-Pandemic Recovery: At the 4th AviationGhana Stakeholders Meeting themed 'Post Covid-19 Recovery Process and the Journey Ahead', Mrs. Djamson Tettey noted a positive post-pandemic recovery trend, especially on domestic routes.
Ministerial Statements
- Superior Customer Service: In response to the meeting, the Minister of Transport, Mr. Kwaku Ofori Asiamah, encouraged airlines to prioritize customer service, safety, and reliability in their operations.
- Ministry Support: He further assured Industry players of the ministry's support whenever required.
Industry Support for the APSC Review
- Consensus for Change: The Deputy Minister of Transport In-Charge of Aviation, Mr. Hassan Tampuli, supported the need for an APSC increase to cater to airport maintenance costs.
- Collaborative Effort: In light of the need to consolidate gains in the aviation sector, Mrs. Djamson-Tettey urged all industry players to foster a concerted effort.
At the annual AviationGhana Stakeholders Breakfast Meeting, various stakeholders sought solutions to key issues within the sector. In the future, an adjusted APSC could enable improved airport services and infrastructure that meet the growing demands of domestic air travel.
- The need for a review of Ghana's Airport Passenger Service Charge (APSC) has been advocated by industry stakeholders, such as Mrs. Pamela Djamson-Tettey, in response to escalating operational costs and the insufficiency of the current GH¢5 charge.
- An adjusted APSC could potentially prevent financial difficulties in maintaining airport infrastructure and services, ensuring the provision of quality services to passengers and fostering a concerted effort among industry players to consolidate gains in the aviation sector.
- The enhanced airport services due to a higher APSC could make Ghana's domestic air travel less cost-competitive with other regions, potentially compelling airlines to revise their fares, affecting the affordability of domestic flights and impacting the business sector.
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