Audio By Carbonatix
The Minister for Transport, Joseph Bukari Nikpe, has appealed to domestic airline operators to reduce air transport fares in light of the cedi's strong performance against the United States dollar and other currencies.
He urged the operators to follow the example of road transport operators, who reduced their fares by 15 per cent.
Speaking to journalists at a stakeholders’ breakfast meeting organised by the Ghana Civil Aviation Authority (GCCA) in Accra, Mr. Nikpe said the benefit of the cedi’s gain must trickle down to every consumer, particularly in the services sector.
“You are aware of the gains our cedi has made. Our cedi has appreciated against all the major currencies. And as such, we anticipate that it will trickle down to the service delivery in our country, the cost of doing business in our country”, he said.
He expressed worry that Ghana’s domestic airline industry is less competitive due to the limited number of airlines operating in the area.
This, he said, has limited price competition, which would have benefited customers if many airlines were operating in the space.
“Let me say that because there are only two domestic airlines, they have a kind of monopoly that is keeping them very tight on their fares. But this breakfast meeting is one that we’re using to appeal to them to consider what the road transport sector did by reviewing their prices downwards by 15%, and urging them to take a cue from that and also do a reduction in their fares”, he stressed.
Mr Nikpe disclosed that the government will continue to engage with the airline operators, who have already signalled their willingness to consider some reductions.
“It is only my prayer that they will listen to the requests and also review downwards their fares. You heard them saying that they are working at it, considering other factors. We are very hopeful that very soon they will end their deliberations, and we will see some fare reduction”.
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