NANTA backs senate on airfare surge probe

The National Association of Nigeria Travel Agencies has urged the Senate to sustain its ongoing probe into high domestic airfares, insisting that greater transparency in fare construction is required to protect the Nigerian travelling public.

Speaking with The PUNCH in an interview in Lagos, the NANTA President, Yinka Folami, said while the association supports local airlines and acknowledges the harsh operating environment in the aviation sector, the burden of rising ticket prices must not be unfairly transferred to passengers.

The PUNCH reports that airfares have reached a terrifying record height, particularly during the Yuletide period, with some domestic air tickets selling for as high as N400,000.

Disturbed by this development, the Senate Committee on Aviation recently invited the Minister of Aviation and Aerospace Development, Festus Keyamo, to appear before the Senate to explain the real reasons for the unpalatable situation.

Meanwhile, our correspondent gathered that the invitation was without a specific date at the time of filing this report, and lawmakers may proceed on an end-of-year break this week.

Athough operators have been lamenting multiple taxation, claiming that they pay over 18 taxes to the government through its agencies, Folami said otherwise.

He said, “NANTA speaks as the custodian of the aviation downstream trade. Aviation is life, aviation is connectivity, and aviation is global presence and commercial power. Every Nigerian, therefore, has a responsibility to protect local airline players. However, our primary responsibility remains to the Nigerian public and the travelling public.”

He said the association aligned itself with key positions earlier outlined by the Minister of Aviation and Aerospace Development, including the reality of a free aviation market, capacity deficits among domestic carriers, the prohibitive cost of aircraft leasing, and high maintenance expenses denominated in foreign currency.

Challenging the claim by some airline operators that as many as 18 government taxes are imposed on every domestic airline ticket, NANTA said the assertion, though coming from “a respected place,” requires serious appraisal and deconstruction.

Folami stressed that, “These are valid realities, but there is also a compelling need for empathy and customer-centric balance in addressing airfares. As IATA-trained and certified professionals in ticketing operations and fare construction, we take a well-informed position that it is not entirely correct to place the burden of high domestic airfares on government taxes alone. In our professional experience spanning over 50 years, this claim is new and should be thoroughly examined.”

The association explained that airfare construction is not arbitrary but is based on flown mileage and standard industry principles. It listed the major taxes commonly applicable to domestic tickets as Nigerian Government sales tax (NG), airport tax (QT), emergency and security-related charges (YQ/YR), and the airline basic fare (NUC), which covers operational costs and profit margins.

However, NANTA expressed concern that YQ/YR charges now account for as much as 60 per cent of domestic ticket prices, while the airline’s basic fare sometimes drops to between 10 and 20 per cent. “This raises critical questions. Why do YQ/YR charges dominate ticket prices? Is Nigerian domestic aviation under a perpetual security emergency? These are clear hints of arbitrariness in airfare construction.”

The NANTA boss further argued that the arbitrary application of YQ/YR charges should be curbed in the interest of consumers, calling for their full deconstruction to ensure pricing transparency.

“NANTA’s strong professional position is that YQ/YR charges are the problem. They should be broken down and clearly explained to the Nigerian travelling public,” Folami stated.

To this end, NANTA formally requested an invitation to the National Assembly’s public hearing on the matter, saying it is ready to provide technical explanations that would douse ambiguities and guide lawmakers towards informed decisions.

He said, “We commend the National Assembly for asking the right questions. On a delicate balance, NANTA stands ready to provide constructive feedback that will support government, local airline operators and, most importantly, the Nigerian travelling public in building an equity-driven aviation ecosystem.”