Patrons of domestic air travel should get access to alternatives by the end of August 2018.
This is because a new airline, Passion Air, has joined the space to provide air transport services for the local market.
This brings to two, the number of airlines operating in Ghana’s domestic aviation market.
Speaking at the official ceremony to inaugurate Passion Air’s first aircraft, the Ghana Civil Aviation Authority said it is will enforce its laws regulating pricing in the aviation industry even as new entrants join the sector.
The Authority believes this should protect consumers as it will prevent unfair competition and possible exploitation in some cases.
The Director of the GCAA, Simon Allotey explained that this should make the industry competitive.
“There could be price wars where a strong carrier could decide to reduce prices to below economic levels just to get the competitors out and once the competitors are out, then they increase prices,” he told Citi Business News.
Passion Air joins Africa World Airlines as the second operator in Ghana’s domestic aviation industry.
AWA has been the only company since Starbow Airlines exited the market early this year.
The new airline is expected to operate flights to Kumasi which will gradually be escalated to Tamale and Takoradi with an increased fleet of aircrafts.
The Commercial Manager for Passion Air, Anita Khoury maintained in an interview with Citi Business News that the company will drive competition to meet the unsatisfied needs of domestic air passengers.
“We are looking at ourselves and how to cover our cost and obviously if you are looking at another airline’s price to determine yours, then you know you are definitely going to fail; you cannot do that,” she said.
Meanwhile the Director General of Ghana Airports Company Limited, John Attafuah is hopeful that the reduction in major service charges should attract more players into the domestic aviation space.
“By subsidizing landing, parking and lighting charges on domestic routes by as much as 40 percent; Additionally by an Act of Parliament, passengers travelling on the domestic routes are charged 5 cedis as airport passenger service charge compared to $60 and above for international travelers,” Mr. Attafuah noted.
Passion Air is expected to commence commercial flights by the end of August following the finalization of the necessary test runs on its aircraft and crew operations.
Source: Citi Business News