High cost of domestic airline fares: can the government do something about it?
Across five Ghanaian routes, the average lowest return fare was US$313.06 and the average highest was US$450.48. Across 12 routes in Nigeria, South Africa, Kenya and India, the averages were US$181.50 and US$227.00. Ghana’s average lowest fare was about 72 percent higher, while its average highest fare was close to twice the comparator average.
A recent social media post highlighting the high cost of domestic air travel in Ghana has sparked public concern. However, it is essential to move beyond emotion and investigate the underlying factors causing these prices to rise. Domestic airfares are part of a broader cost issue in Ghana, which I refer to as "the Ghanaian pricing culture."
This encompasses various sectors such as hotel rooms, residential accommodation, office rent, car rentals, imported equipment, and professional services. Airline operations also involve numerous inputs, including those priced in foreign currency, which contribute to the overall cost of flights.
The market structure can impact the cost of flights. In 2012, there were four domestic airlines in Ghana, but this number reduced to one in 2017. The number of airlines has since decreased to two, which limits competition and reduces pressure for airlines to offer competitive pricing. Despite several factors contributing to high domestic airfares, government intervention is necessary to address the issue and make air travel more affordable for ordinary citizens.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
