Something is being done – GCAA boss on government’s move to cut airline costs
The Ghana Civil Aviation Authority (GCAA) says measures are being taken to help reduce the cost of domestic air travel as concerns over high airfares continue to grow.
The Ghana Civil Aviation Authority (GCAA) is taking steps to alleviate the burden of high domestic airfares, as concerns over ticket prices continue to rise. Director General Rev Stephen Wilfred Arthur stated that the regulator is actively working to address these concerns while encouraging additional airlines to enter Ghana's domestic aviation market.
Arthur clarified that airfares are not set by the GCAA, but are largely influenced by market forces. "In our industry, the pricing of an air ticket is not fixed by the regulator, that is, the Ghana Civil Aviation Authority. The price of a ticket essentially is deregulated. In other words, market forces to a larger extent are determining the rate of the air ticket," he said.
However, Arthur noted that the GCAA can step in to prevent anti-competitive practices or price collusion. The authority is welcoming new airlines into the market, provided they adhere to the necessary regulatory standards. Arthur believes increased competition could increase the number of seats available and prompt airlines to enhance services, consequently bringing fares down.
He emphasized that safety and security will not be compromised in pursuit of attracting more airlines. The GCAA also lauded the government's recent removal of import duties on aircraft spare parts, a move that could potentially reduce operational costs for domestic airlines and subsequently lower airfares. While spare parts are not the sole factor affecting airlines' expenses, they are one of the significant contributors to the final ticket price, according to Arthur.
He expressed optimism that reduced fares could encourage more citizens to travel domestically, thereby expanding Ghana's aviation market.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.