As if the cost of food items in Nigeria is not enough, airfares are on the verge of an increase as airports and Air Navigation Services Providers (ANSPs) in various parts of the world have concluded plans to raise their charges by at least $2.3bn, an equivalent of N950 billion naira.
The European Union and countries such as the United Kingdom, South Africa, Ethiopia and the United States, are on the list of those that have geared up plans to increase the charges.
The International Air Transport Association (IATA), the global body representing over 290 international carriers, following this development, noted that the planned hike in charges would halt COVID-19 recovery in air transport as well as damage international connectivity.
But the Director-General, IATA, Willie Walsh, while speaking at the 77th Annual General Meeting and World Air Transport Summit in Boston, United States, noted that it was wrong to increase charges at a time the aviation industry was seeking ways to recover from the negative effects of COVID-19 pandemic.
READ ALSO: Soaring Food Prices Slowly Creating Ground For Extreme Hunger In Nigeria
WHAT THIS MEANS:
- The financial burden of the crisis in the sector has been placed on the backs of customers who have other challenges to deal with.
- The recovery from the COVID-19 pandemic would be slowed down by the ANSPs.
- The ANSPs, the majority of which are state owned, are looking to recoup almost $9.3bn (N3.84tn or €8bn) from airlines to cover revenues not realised in 2020/2021.
- The airlines are carrying out the move to recover the revenue and profits they missed when airlines were unable to fly during the pandemic.
- Nigerians, who are currently faced with serious economic challenges, may be forced to seek alternative modes of travelling.
Meanwhile, other airports pushing for a hike include Heathrow Airport, which is pushing to increase charges by over 90 percent in 2022; Amsterdam Schiphol Airport requesting to increase charges by over 40 percent over the next three years; Airports Company South Africa asking to increase charges by 38 percent in 2022; NavCanada increasing charges by 30 percent over five years; and Ethiopian ANSP raising charges by 35 percent in 2021.
