Joseph Bukari Nikpe is the Minister of Transport
The Minister of Transport, Joseph Bukari Nikpe, has asked domestic airline operators to adjust flight fares to reflect the recent appreciation of the local currency.
According to him, the currency has performed fairly stable in the last few weeks, enough to trigger a reduction in transport fares.
Following the appreciation of the cedi, transport fares were reduced by 15%.
The minister noted that this should trickle down to every consumer, especially in the services sector.
“You are aware of the gains our cedi has made. Our cedi has appreciated against all the major currencies. And as such, we anticipate that it will trickle down to the service delivery in our country, the cost of doing business in our country,” he was quoted by myjoyonline.com.
The minister lamented the non-competitiveness of Ghana’s domestic airline industry, which causes limited price competition.
He said, “Let me say that because there are only two domestic airlines, they have a kind of monopoly that is keeping them very tight on their fares. But this breakfast meeting is one that we’re using to appeal to them to consider what the road transport sector did by reviewing their prices downwards by 15%, and urging them to take a cue from that and also do a reduction in their fares.”
He, however, noted that the government will continue to engage with the airline operators to work towards a price adjustment sooner or later.
“It is only my prayer that they will listen to the requests and also review downwards their fares. You heard them saying that they are working at it, considering other factors. We are very hopeful that very soon they will end their deliberations, and we will see some fare reduction,” Nikpe said, the report stated.
SSD/AE