Bankole Bernard, Group Managing Director of Finchglow Holdings, has called on the Federal Government to reduce taxes and levies on air tickets, citing them as a major factor behind rising airfare in Nigeria.
Bernard, whose company oversees six travel- and aviation-focused businesses, also highlighted increased demand and limited airline capacity during the Yuletide season as drivers of soaring ticket prices.
Speaking to journalists in Lagos, he explained that when demand exceeds supply, prices naturally rise, and government policies could help stabilize the market.
βIn the airline business, profit comes through yield and boarding. Yield is maximizing price, while boarding is taking more passengers,β Bernard said. βBut government charges on tickets also play a significant role.β
He noted that of a typical N1,000 ticket, N550 goes to the airline, while the remaining N450 is shared among regulatory bodies, including the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and Nigerian Safety Investigation Bureau (NSIB).
βThese charges put pressure on the cost of tickets. If the government can reduce these service costs for airlines, ticket prices could come down,β he said.
Bernard emphasized that reducing taxes and levies would complement market dynamics in balancing demand and supply, particularly during peak travel periods.
He appealed to the government to implement measures that would lower the financial burden on passengers without compromising safety and operational standards.
According to Bernard, addressing both regulatory costs and seasonal demand pressures is crucial to making air travel more affordable for Nigerians.
He concluded by urging policymakers to consider reforms that would improve the overall efficiency and accessibility of domestic aviation.
