Something is being done – GCAA boss on government’s move to cut domestic airline costs

The Ghana Civil Aviation Authority (GCAA) has outlined measures being taken to alleviate the burden of high domestic air travel costs, as concerns over excessive ticket prices continue to rise. Director General Rev Stephen Wilfred Arthur revealed that the regulator is actively working to address ticket price concerns while encouraging more airlines to join Ghana's domestic aviation market.

According to Arthur, airfares are not fixed by the GCAA but are largely dictated by market forces. "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 explained.

However, the GCAA is prepared to intervene if anti-competitive practices or price collusion are detected. The authority is open to new airlines entering the market, provided they adhere to the required regulatory standards. Arthur emphasized that the GCAA aims to create a level playing field for all prospective airlines, without any form of discrimination.

He further stated that increased competition within the industry could result in more seats in the market, putting pressure on airlines to improve services and offer more affordable fares. "Definitely when there are more players in the industry, or more airlines in the air transport space, definitely there will be more seats by way of capacity," Arthur affirmed.

The GCAA director also highlighted the government's recent withdrawal of import duties on aircraft spare parts as a positive step towards reducing operating costs for domestic airlines. "We are very much proud of the recent withdrawal of the import duties on the aircraft spares and the like by the government, so as to also help lower the cost of operations for domestic airlines, and thereby also let it result in some meaningful reduction of the airfares," he noted.

While acknowledging that aircraft spare parts are not the only cost impacting airlines, Arthur noted that fuel and leasing costs also contribute to the final ticket price. Nevertheless, he emphasized that the government's actions demonstrate a commitment to addressing the issue. "At least there is a demonstration on the part of government that something is being done," Arthur remarked.

Arthur believes that lower fares could incentivize more individuals to opt for domestic flights, thereby expanding Ghana's aviation market.