Something is being done – GCAA boss on government’s move to cut airline costs

The Ghana Civil Aviation Authority (GCAA) says measures are being taken 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, says the regulator is working to address concerns over ticket prices while encouraging more airlines to enter Ghana’s domestic aviation market.

He explained that 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.”

Rev Arthur, however, said the GCAA can intervene where there are anti-competitive practices or price collusion.

He said the authority is open to new airlines entering the market, provided they meet the required regulatory standards.

“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 bring more seats to the market and put pressure on airlines to improve services and make fares more affordable.

“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.

Rev Arthur said safety and security, however, would not be sacrificed to attract more airlines.

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

He also pointed to the government’s recent withdrawal of import duties on aircraft spare parts as one 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 acknowledged that aircraft spare parts are not the only cost affecting airlines, noting that fuel and leasing costs also contribute to the final ticket price.

“But at least there is a demonstration on the part of government that something is being done,” he said.

Rev Arthur believes lower fares could encourage more people to fly domestically and help expand Ghana’s aviation market.

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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.