Transport Minister Urges Airlines to Cut Airfares After Duty Waivers

Transport Minister Urges Airlines To Cut Airfares After Duty Waivers

Transport Minister Joseph Bukari Nikpe has urged domestic airlines to reduce airfares following the government’s decision to waive duties and taxes on aircraft spare parts imported by local carriers.

steph0626 ·


Mr Nikpe made the appeal during the unveiling of Africa World Airlines’ (AWA) new 102-seat Embraer E190 aircraft at the Accra International Airport.

He said the government’s decision to remove duties on aircraft parts was intended to reduce the operating costs of domestic airlines and improve the sustainability of the aviation sector.

The Minister therefore called on airlines, particularly leading domestic carriers such as AWA, to reflect the savings from the tax relief in their fares so that passengers could benefit from the policy.

“Considering the recent announcement by His Excellency that all the duties on parts of domestic airlines will now be waived,” Mr Nikpe said, the government expected airlines to allow the benefits to “reflect on the Ghanaian traveller” through reduced airfares.

The duty waiver follows a government policy aimed at easing some of the financial pressures facing domestic airlines, which rely heavily on imported components for aircraft maintenance. Africa World Airlines has previously welcomed the measure, describing it as significant financial relief that could improve its operating economics and support future expansion.

Mr Nikpe also linked the potential reduction in fares to the introduction of larger aircraft, saying increased passenger capacity could encourage more Ghanaians to use domestic air travel.

AWA’s newly unveiled Embraer E190 has 102 seats, comprising 14 premium economy and 88 economy seats. The aircraft forms part of the airline’s planned 10-aircraft fleet expansion, aimed at strengthening connectivity within Ghana and across West Africa.

The Transport Minister also outlined ongoing government efforts to improve aviation infrastructure, including developments at airports in Bolgatanga, Wa and Sunyani, as well as the expansion of the runway at Kumasi International Airport to accommodate larger aircraft.

The government’s expectation is that lower operating costs, increased aircraft capacity and improved airport infrastructure will collectively make domestic air travel more accessible to Ghanaian travellers.

Photo courtesy: Hon. Joseph Bukari Nikpe

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