Business News of Saturday, 24 June 2023

Source: aviationghana.com

MP opposes US$7 baggage disinfection charge at KIA

Kwame Governs Agbodza, Member of Parliament for Adaklu Constituency Kwame Governs Agbodza, Member of Parliament for Adaklu Constituency

The Member of Parliament for Adaklu Constituency in the Volta Region, Kwame Governs Agbodza, has opposed the proposed US$7 per passenger charge for the fumigation of bags at Ghana’s Kotoka International Airport.

Mr. Agbodza, who is also the Minority Chief Whip in the Parliament of Ghana, and a long-standing ranking member on the Transport Committee of Parliament told AviationGhana in Accra on Friday, June 23 that the decision by Ghana Health Service is without basis and will only serve to make air travel more expensive.

“I think this is very, very unnecessary. You already know that airlines and related businesses are still struggling to recover, and airline tickets are generally extremely high. I am not sure that the government or any agency related to the government came to Parliament to seek approval for any tax. By the way, it is only Parliament that can impose taxes, fees, and charges. So I believe if what we are hearing that GHS intends to charge an additional $7 or so is true, the government should back off. This is insensitive and must not be allowed to happen.

Airlines and passengers are already struggling. Let us allow the industry to recover and then we can discuss that. As it stands, there is no existing law allowing government to charge passengers an extra $7 dollars [for bags fumigation].”

The comments by the legislature follow an action by the Ghana Health Service impressing airlines to add US$7 per passenger on each international airline ticket sold and remit the same to the government agency as a luggage fumigation charge.

AviationGhana sources revealed that the decision of the GHS was conveyed by the Ghana Airports Company Limited to airlines servicing Accra’s Kotoka International Airport at a meeting held on Thursday, June 22, 2023, in Accra.

Airlines, who are still recovering from the impact of the covid-19 pandemic, opposed the decision of the GHS and further pointed to the lack of local law for the planned charge.

If implemented, the imposition of the US$7 fumigation charge will lead to further increases in airfares, which already remain elevated due to high aviation fuel costs, a weak local currency, and a general economic squeeze since last year.

The impact of the COVID-19 pandemic cost the industry some US$180 billion over a three-year period. However, the International Air Transport Association (IATA) predicts that the rebound will lead to a US$2.25 revenue per passenger this year. This is a significant improvement from the -1.1 dollars per passenger loss recorded last year.

In Ghana, most international airlines began re-opening routes they suspended last year and are yet to reach the performance heights recorded in 2019. Ghana to Charge $7 per pax at Kotoka International Airport to fumigate bags.