We cannot build an aviation hub on 2010 rates – Agalga defends new airport levies

The Board Chairman of the Ghana Airports Company Limited, James Agalga, has strongly defended the newly introduced airport passenger service charges, arguing that the previous pricing structure had become a significant financial burden that undermined Ghana’s long-term aviation ambitions.

Speaking on Joy FM’s Super Morning Show on Tuesday, April 7, 2026, Mr. Agalga disclosed that the GACL had effectively been operating on revenue margins set nearly 14 years ago. He described this situation as unsustainable, particularly for a state-owned entity expected to function as a profit-making enterprise while maintaining and expanding critical aviation infrastructure.

Under the revised pricing framework, domestic passengers will now pay an additional 100 Ghanaian cedis (approximately $9) per one-way ticket. Regional travel fares have increased by as much as $30, while international passengers are facing surcharges of $50 for one-way journeys and $100 for return tickets. These adjustments, according to GACL, are necessary to align Ghana’s aviation sector with prevailing regional and global standards.

Mr. Agalga explained that although a 2010 amendment set the domestic passenger service charge at 5 Ghana cedis, the GACL did not retain the full amount. Instead, portions of the revenue were redistributed to other state institutions, including the Ghana Civil Aviation Authority (7.5%), the Ghana Meteorological Agency (5%), and the Accident Investigation and Prevention Bureau (1.5%). Additionally, the Ghana Revenue Authority retained 3% as collection charges.

As a result, he noted, GACL received only about 4 cedis and 15 pesewas out of the original 5 cedis, meaning roughly 17% of the airport service charge was diverted. He described this as a long-standing “resource drain” that limited the company’s ability to reinvest in infrastructure and service delivery.

The Board Chairman stressed that the upward revision in charges is a strategic move aimed at positioning Ghana as a leading aviation hub in Africa. He argued that competing with major continental carriers such as Ethiopian Airlines, Kenya Airways, and South African Airways requires significant financial investment in modern airport facilities, safety systems, and passenger experience enhancements.

“Ghana positions itself as the aviation hub of Africa,” he said, emphasizing that achieving this vision requires robust infrastructure development. He added that the government deliberately structured GACL as a limited liability company so it could operate commercially and generate profits, rather than rely solely on state funding.

Mr. Agalga also pointed out that the 5-cedi charge had remained unchanged since 2010, despite years of inflation and currency depreciation. Even at that time, Ghana’s airport charges were among the lowest in the sub-region, with neighboring countries charging significantly higher fees, often denominated in US dollars.

While the new charges have sparked widespread criticism among travelers and industry stakeholders concerned about rising travel costs, GACL maintains that the increase is essential. The company insists that passenger service charges represent its primary source of internally generated funds needed to finance ongoing and future projects.

According to Mr. Agalga, the additional revenue will be strictly invested in upgrading airport infrastructure, improving safety and security systems, and enhancing overall passenger experience across both domestic and international terminals.

As public debate over the affordability of air travel continues, GACL remains firm in its position that these reforms are necessary to secure Ghana’s competitiveness in the rapidly evolving African aviation sector and to prevent the country from falling behind in the race for regional air transport leadership.