Small market, low incomes keep Ghana’s domestic airfares high, says Prof Peter Quartey
Economist Professor Peter Quartey has attributed Ghana’s high domestic airfares to a combination of a small aviation market, low incomes, taxes, fuel prices and the cost of capital.
Ghana's domestic airfares are high due to a combination of a small aviation market, low incomes, taxes, high fuel prices, and the cost of capital, according to Professor Peter Quartey, an economist. Speaking to Joy News, Quartey noted that the cost of travel is not exclusive to the airline industry, as hotels, rent, and other expenses are also expensive in Ghana.
He highlighted that Ghana's domestic aviation market is smaller than that of countries like Nigeria, leading to higher fares due to less competition. Additionally, the country's lower income levels and longer operating experience of major African airlines contribute to the high cost. Quartey criticized the high tax burden on the aviation industry and the high cost of aviation fuel, which accounts for about 30% of airlines' costs.
He emphasized the need for expanding the aviation market and creating a favorable environment to attract more players, which he believes will ultimately lead to lower fares.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
