The Minister for Transport, Joseph Bukari Nikpe, has appealed to domestic airline operators to reduce air transport fares in the wake of the strong performance of the cedi.
He urged the operators to follow the example of road transport unions, who recently reduced their fares by 15 percent.
Speaking to journalists at a stakeholders’ breakfast meeting organised by the Ghana Civil Aviation Authority (GCAA) in Accra, Mr. Nikpe said the benefit of the cedi’s appreciation 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 concern that Ghana’s domestic airline industry is less competitive due to the limited number of operators.
This, he noted, has restricted price competition, which would have benefited consumers had more airlines been operating.
“Let me say that because there are only two domestic airlines, they have a kind of monopoly that keeps them firm on their fares. But this breakfast meeting is one we are using to appeal to them to consider what the road transport sector did by reviewing their prices downwards by 15 percent, and urging them to take a cue from that,” he stressed.
Mr. Nikpe disclosed that the government will continue engaging the airline operators, who have already signaled their willingness to consider some reductions.
“It is only my prayer that they will listen to the requests and also review their fares downwards. You heard them saying that they are working on it, considering other factors. We are very hopeful that very soon they will have concluded their deliberations and we will see some fare reductions,” he added.