The Ghana Civil Aviation Authority (GCAA) says it is taking measures to help reduce the cost of domestic air travel as concerns over high airfares continue to grow.
Director General of the GCAA, Rev. Stephen Wilfred Arthur, said the regulator is working to address concerns over ticket prices while encouraging more airlines to enter Ghana’s domestic aviation market.
He explained that domestic airfares are not fixed by the regulator but are largely determined 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.
More airlines could increase competition
Rev. Arthur said the GCAA could, however, intervene in cases involving anti-competitive practices or price collusion.
He added that the Authority was open to new airlines entering the domestic market, provided they meet all applicable regulatory requirements.
“We are very much open, and we create a level playing field for all prospective applicants or airlines, without any discrimination,” he said.
According to him, increased competition could expand available capacity, improve services and potentially put downward pressure on airfares.
“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,” he said.
He stressed, however, that efforts to attract more airlines would not come at the expense of aviation safety and security.
“At all times we will never compromise on safety and security just for the sake of injecting the space with more players,” Rev. Arthur stated.
Aircraft spare parts duties removed
The GCAA Director General also pointed to the government’s recent withdrawal of import duties on aircraft spare parts as a measure that could help reduce 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 said.
Rev. Arthur acknowledged that aircraft spare parts are only one component of airline operating costs, with fuel and aircraft leasing also contributing significantly to the final price of tickets.
“But at least there is a demonstration on the part of government that something is being done,” he said.
He expressed the view that lower domestic airfares could encourage more people to use air transport and contribute to the expansion of Ghana’s domestic aviation market.
