GCAA backs more domestic airlines to drive down airfares

The Ghana Civil Aviation Authority (GCAA) has expressed openness to more domestic airlines entering the market, aiming to boost competition and lower airfares. Director General Rev Stephen Wilfred Arthur highlighted that competition is crucial for making domestic air travel more affordable. He clarified that the GCAA does not set ticket prices, as pricing is primarily determined by market forces.

The regulator can only intervene in cases of anti-competitive practices or price collusion. Arthur welcomed the opportunity to bring more players into the domestic aviation sector, promising to create a level playing field for all prospective airlines without discrimination. He emphasized that more airlines would increase capacity and competition, potentially reducing fares and enhancing service quality.

However, he stressed that this push for additional airlines would not compromise safety and security. Arthur also noted that the government's reduction of import duties on aircraft spares could help domestic airlines reduce operating costs, which could eventually lead to lower airfares. He believes that lower fares could encourage more people to fly domestically, creating greater demand for the sector.

Ultimately, Arthur believes that keeping fares too high could harm the industry by limiting the number of people able to travel by air.