Foreign airlines to increase fares over new forex policy

Posted by News Express | 21 June 2016 | 1,654 times

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The Association of Foreign Airlines Representatives of Nigeria (AFARN) said on Monday that its members might increase air fares due to the new flexible foreign exchange policy introduced by the Federal Government.

The association’s President, Mr Kingsley Nwokoma, disclosed this in an interview with the News Agency of Nigeria (NAN).

NAN reports that the CBN on May 24 announced a floating exchange rate regime aimed at making foreign currencies more accessible in the country that took effect today.

With the move, the apex bank nullified the official exchange rate regime of N197 to the dollar.

However, Nwokoma said the new policy could have a negative impact on the flying passengers in terms of increase in fare tickets.

He said: “Apparently, it is going to affect the airlines and on the long run; those into the import and export businesses will also be affected.

“For instance, if the airline’s ticket rate is about N200 to the dollar, it means we are still using the old CBN rate.

“Now that everything is at par and parallel, we will be looking at between N350 and N360 and above depending on market demands.

“In essence, it will affect aviation generally. For example, the price of ticket will apparently increase and the cost of importing and exporting of cargoes will also increase.”

According to him, this means that the cost will go back to the flying public and importer and exporter of cargoes in and out of the country.

Nwokoma, therefore, pleaded with the Federal Government to exempt its members from the new forex policy. (NAN)

•Photo shows Aviation Minister of State Had Sirika.

Source: News Express

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