Mr Bankole Bernard, the Group Managing Director of Finchglow Holdings has blamed the high cost of airfares on taxes and levies, calling on the Federal Government to review policies that will ease the burden on passengers.
Bernard made the appeal during a chat with aviation journalists on Thursday in Lagos.
Speaking on the current exorbitant cost of ticket fares, Bernard said that it was a direct consequence of an imbalance between passenger demand and available flight capacity.
He asserted that airfare prices were driven primarily, by a commercial decision rooted in basic economics and regulatory policy, giving room for a quick fix to ameliorate the issue.
According to him, the dual pressure of demand and taxes is a two-fold issue: the natural pressures of supply and demand, and the heavy burden of government levies.
“There is nothing you and I can do about it… it is called a commercial decision and when something is a commercial decision, it is beyond regulatory, if demand outweighs supply, the cost of tickets will inevitably rise.”
Breaking down the pain point as the immense amount of taxes loaded onto every ticket, Bernard said: “When you look at a ticket that is ₦1,000 for example, ₦450 goes to charges. So the airline is just collecting on behalf of everybody.
“Only ₦550 goes to the airline. These substantial charges are distributed among several agencies, including the Nigeria Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Safety Investigation Bureau (NSIB).
Bernard, therefore, appealed to the government to reduce these charges, emphasising that the airlines are merely conduits, passing the full cost directly onto the passenger.
He added that a direct reduction in taxes on air travel services, which are ultimately borne by the passenger, would immediately lower the final ticket price.
He urged the government to implement policies that encourage airlines to increase frequency on routes, allowing them to make profit through volume rather than solely through yield.
“So, I appeal to the government to see how we can reduce the taxes and levies on passengers,” he said.
He stressed that a supportive regulatory environment, coupled with sound commercial practices, is the only way to make air travel affordable for the average Nigerian.
Bernard also spoke on a centralised data, explaining that the lack of a reliable, centralised data was a major obstacle to industry planning and growth.
He referenced the success of the Billing and Settlement Plan (BSP) in providing clear, central passenger records, which allowed the industry to accurately track recovery from COVID-19.
He noted that a similar system was crucial for the growing cargo business to prevent ‘guesswork’ and provide a clear picture of growth and revenue; therefore, called for a commercial strategy to grow the sector.
He also hailed the Federal Government and the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, SAN, for the successes recorded so far, especially with trapped funds which has been cleared among others.
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Bernard disclosed that the Lagos Aviation Academy (LAA), a subsidiary of Finchglow Holdings, would inaugurate its Fly School in 2026 to reduce forex flight as with the case when Nigerians study abroad among others.
During the media chat, the subsidiaries of Finchglow Holdings appraised their performance for the year and highlighted their projections for 2026.
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