NIGERIA MASTERWEB DAILY NEWS

Passengers to Pay Service Charge Directly To Operator of MMA2 ..........Following Airlines Default........ By Lateef Lawal, Lagos, Nigeria. Passengers using the MMA2 Terminal in Lagos, Nigeria are to directly pay the passenger processing fee, otherwise known as passenger service charge to Bi-Courtney Aviation Services Limited(BASL), the operator of the terminal, effective October 1, 2009. Hitherto, the fee was embedded in the air fare paid by each passenger to the airline they chose to travel with, but the non-remittance of the cumulative fees by airlines to government has been cited as the reason behind the latest development. It would be recalled that the Federal Airports Authority of Nigeria(FAAN) recently alleged that several airlines were owing it hundreds of millions of Naira of unpaid passengers' service charge collected on its behalf over the years before passing the management of the MMA2 to Bi-Courtney which was also responsible for the building of the new terminal. According to the Head, Corporate Affairs and Communications of BASL, "The passenger processing charge of N1,000 is already included in ticket prices and collected by airlines on behalf of of Bi-courtney. Because the airlines are not remitting this amount to us,we are now forced to collect from passengers directly. With the new collection method,we expect airlines to reduce their fares by N1,000." The passenger processing fee is used to maintain the facilities within the terminal. The level ot indebtedness of airlines to Bi-Courtney from unremitted passenger service charge ,Odugbesan disclosed has risen to hundreds of millions of Naira, thus making it difficult for the company to service its indebtedness to its bank and maintain facilities.He noted that the efforts to work out a debt-proof arrangement with the airlines proved futile.The new collection measure,also practised in some airports the world over, Odugbesan said, should not translate into an increase in airfare. Posted by Lateef Lawal