By Dickson Omobola
Group Managing Director of Finchglow Holdings, parent company of six travel- and aviation-focused businesses, Mr Bankole Bernard, has urged Federal Government to reduce the taxes and levies on air tickets, saying it is one of the reasons for the skyrocketing airfares.
Bernard also fingered the surge in ticket prices during the Yuletide to rising demand and limited airline capacity.
According to him, if demand exceeded supply, prices would automatically increase and favourable government policies could help stabilise the market.
Addressing newsmen in Lagos, he said: “In the airline business, you can make your profit through yield and through boarding. Boarding is taking more passengers. Yield is making the best out of the prices that are there, but without overlooking the aspect of government as well, particularly the taxes and charges on tickets.
“When you look at the ticket price, for instance, N1,000. N550 goes to the airline, while the remaining N450 is what the Nigerian Civil Aviation Authority, NCAA, Federal Airports Authority of Nigeria, FAAN, Nigerian Safety Investigation Bureau, NSIB, will take part of.
“When you really look at it, you see that those are the things putting pressure on the cost of tickets. So if the Nigerian government can reduce the cost of the services they provide to the airlines, I am sure that the cost of tickets will come down a bit.
“That is apart from the fact that demand and supply plays its own role. Therefore, I appeal to government to see how we can reduce the taxes and levies on passengers.”
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