Transport Minister Joseph Bukari Nikpe has raised concerns about the limited competition in Ghana’s domestic airline space, which he says is driving up fares to the detriment of travelers.
The exorbitant air transport fares, mainly driven by less competition, are placing a heavy burden on travelers who rely on air travel for business, health, or family obligations across regions.
Ghana’s domestic airline space is currently dominated by just two carriers: Africa World Airlines and PassionAir. Experts say these two are creating a de facto duopoly. This concentrated market has led to high fares, limited seat availability, and suppressed passenger volume.
The Ghana Civil Aviation Authority (GCAA) has actively invited new entrants to enhance competition, and passenger numbers peaked at over 850,000 in 2022 before dipping due to capacity constraints and pricing issues.
The Minister for Transport has recognized this situation describing it as a near monopoly that can easily increase prices.
“There are only two domestic airlines; they have a kind of monopoly that is keeping them to be very tight on their fares,” he indicated.
The two airlines dominating Ghana’s airspace are currently offering limited options for passengers flying between major cities like Accra, Kumasi, Tamale, Takoradi, and Wa.
Patrons often lament that the price of a one-way domestic flight can be almost double that of a return trip via luxury bus, making air travel an option only for the privileged or desperate.
Travelers have long lamented the high cost of tickets, inconsistent schedules, and the inability to access more affordable alternatives, even when fuel prices and inflation rates fall.
While global aviation trends remain volatile, the absence of meaningful domestic competition appears to be inflating the situation further.
To address these concerns within the industry, the Minister has initiated a campaign to ensure that these airlines cut prices amid the significant appreciation of the cedi.
“This breakfast meeting is one that we use 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,” the Minister said at an industry breakfast meeting.
Minister Nikpe’s public call aligns with recent developments in the transport sector, where road transport unions voluntarily slashed fares by 15% in response to falling fuel prices and public pressure.
He believes the same principle of shared economic relief should apply to the airline industry.
While the government has indicated plans to attract new players into the domestic aviation space to curb what may be seen as a growing monopoly, industry experts caution that regulatory, infrastructural, and operational hurdles must be tackled to make the sector more attractive to investors.
