Market must decide airfares

Government has been told to allow market forces to determine airfares rather than attempt to pressure airline operators into reducing them. “We feel that the market is the best regulator of airfares. Market forces should be allowed to determine airfares,” Mr. Robert Bryan, Commercial Director (Africa Occidentale and Oriental) for Delta Airlines, said about a directive from the Ghana Civil Aviation Authority (GCAA) and lawmakers to airlines to reduce airfares. Mr. Bryan was speaking to B&FT on the sidelines of a tour organised by Delta Airlines for selected journalists to experience the facilities onboard its Boeing 767-400ER aircraft. Lawmakers have in recent times called for a reduction in airfares by international airline operators in the country. Failure to reduce airfares, they said, will attract sanctions. The Ghana Civil Aviation Authority (GCAA), the industry’s regulator, has also directed international airlines to take measures to reduce airfares and provide world-class quality services to passengers who fly in and out of the country. It warned of “drastic measures” if companies fail to comply. Airlines have retorted that high taxes and fees, which sometimes account for more than half of airfares, inflate ticket prices. “Authorities should review the level of taxes being charged. The level of taxes does not encourage people to travel. In any case, is it being re-invested to improve airport infrastructure?” said James Wooldridge, British Airways’ Country Commercial Manager, in a recent chat with B&FT. “For a ticket that costs US$350, passengers pay about US$500 in taxes, bringing the total price to US$850. If the taxes are reviewed, it will bring down the cost of airfares considerably,” he said. The Managing Director, Delta GSA, Ghana and Liberia, Mr. Pakwo Shum, said the tour of Delta’s facilities was to reveal investments the airline has made in recent times, to upgrade its facilities and afford its passengers the best of air travel experience. Mr. Shum said the airline’s fares are very competitive, and it regularly undertakes promotional activities and offers discounts to different segments of the market. Delta Airlines in 2010 earmarked an investment of US$1billion in technology, products, services and airport facilities. Customers can now check in for flights, print boarding-passes, check bags and review flight status online. Delta has upgraded the seats and in-flight entertainment on its Boeing 767-400 ER aircraft. All seats are now equipped with the latest in-flight entertainment technology and passengers in BusinessElite enjoy flat-bed seats. All the seats in BusinessElite are also fitted with massagers. It also has upgraded pillow, blanket, duvet cover, amenity kit, personal reading lights, and power source for charging personal electronics. Economy Comfort passengers now enjoy 50 percent more recline in their seat and four inches additional legroom on Delta’s Boeing 767-400ER. Economy passengers also enjoy all-leather seats with 81-84cm pitch and complimentary meal service. Delta Air Lines serves more than 160 million customers each year. The airline was named by Fortune magazine as the most admired airline worldwide in its 2011 World's Most Admired Companies airline industry list, and was named the “Top Tech-Friendly U.S. Airline” by PCWorld magazine for its innovation in technology. It offers services to 341 destinations in 61 countries on six continents. Source: B&FT