GCAA backs more domestic airlines to drive down airfares

The Ghana Civil Aviation Authority (GCAA) says it is open to more domestic airlines entering the market as part of efforts to increase competition and help drive down airfares.

Director General of the GCAA, Rev Stephen Wilfred Arthur, said competition is one of the key factors that could make domestic air travel more affordable.

Speaking on Joy News’ PM Express Business Edition on Thursday, he said the regulator recognises concerns over the cost of domestic air tickets.

He, however, explained that the GCAA does not set ticket prices.

“As the regulator of the air transport industry in Ghana, we must state something very categorical: that we are working at it, but permit me to make this very fundamental statement: that in our industry, the pricing of an air ticket is not fixed by the regulator,” he said.

According to him, airfares are largely determined by market forces.

He said the regulator can only intervene where there are anti-competitive practices or price collusion.

“Where there are any anti-competitive practices or any price collusion, the regulator has every right to come in, investigate, and enforce the necessary sanctions or measures to restore the pricing to its normal and its natural and market real genuine forces or rate,” he said.

Rev Arthur said the GCAA welcomes efforts to bring more players into the domestic aviation market.

He said the Authority is prepared to create a level playing field for prospective airlines while taking them through the necessary regulatory processes.

“We are very much open, and we create a level playing field for all prospective applicants or airlines, without any discrimination, whether you are from here or from there,” he said.

He added that more airlines would increase capacity and competition, potentially putting downward pressure on fares while improving service quality.

“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 said competition could also push airlines to improve their services while making fares “more affordable than we have it at the moment.”

Rev Arthur, however, stressed that the drive for more airlines would not come at the expense of safety.

He said applicants must meet all the necessary regulatory requirements before they can operate.

“At all times we will never compromise on safety and security just for the sake of injecting the space with more players,” he said.

He also pointed to government’s withdrawal of import duties on aircraft spares as a measure that could help reduce operating costs for domestic airlines.

He said lower operating costs could eventually lead to lower airfares.

“We do appreciate that it is not the only reason. They have fuel, they have the leasing cost, but at least there is a demonstration on the part of government that something is being done,” he said.

Rev Arthur said the domestic market has room for growth.

He argued that lower fares could encourage more people to fly, creating greater demand for domestic air travel.

“If fares go down, more people will be ready and willing, and can afford to, fly domestically,” he said.

He added that keeping fares too high could ultimately hurt the industry by limiting the number of people able to travel by air.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.