Passenger numbers drop in first half of 2015

The number of people using air transport as a means of travelling within Ghana in the first half of the year has declined compared to figures from last year.

According to the sector minister, Fiifi Kwetey, the drop can be attributed to the high cost of air tickets.

“The reduction in the domestic passenger movement largely is a combination of the difficulties in the increase in aviation fuel cost last year and also the fiscal issues that brought about introduction of VAT” – he said at a press conference in Accra.

Local airlines complain that value added tax (VAT) on aviation fuel and other charges, which are passed on to passengers, is the reason why tickets are dear.

Earlier this week, the government announced a 20 percent reduction in aviation fuel to make the country as competitive as its West African neighbours, where many international airlines stop to refuel.

“The main reason why the cost was reduced by 20 percent is not just targeted at the domestic airlines but to make Ghana a destination for airlines to refuel. Before the reduction, Emirate for instance makes a stop here in Kotoka but always go to Abidjan to refuel.

In terms of the aviation fuel you heard a good announcement that reduced it by 20 percent. We are talking to the Ministry of Finance as well in order to see an elimination of the VAT”

Government has been trying over the years to increase domestic air travel numbers because it is a faster and safer mode of transport.

However, within the period under review, international passenger numbers recorded an increase; up from 754,553 passengers in 2015 to 837,019 passengers.