Ghana aviation regulator cites market forces for high domestic airfares

The Ghana Civil Aviation Authority (GCAA) has stated that domestic airfare prices are determined by market forces rather than government regulation. Director General Rev Stephen Wilfred Arthur clarified that the authority lacks the mandate to cap ticket prices, noting that its intervention is limited to addressing anti-competitive practices or price collusion.

To address high costs and limited capacity, the GCAA is overseeing the certification of at least two new airlines that could enter the market by 2027. While seeking to increase competition to drive down fares, the regulator emphasized that safety standards will not be compromised for the sake of market expansion.

Aviation analysts suggest the current market operates as a duopoly, where stagnant capacity despite rising passenger demand has created a supply shortage, putting upward pressure on prices. Meanwhile, the Ghanaian government has introduced tax reforms, such as removing duties on imported aircraft spare parts, to lower operational costs for carriers. These efforts align with regional ECOWAS goals to reduce transport costs through lower passenger and security fees.