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Competition in domestic air travel drives down airfares to Gh˘50
Posted on: 21-Aug-2012         Source: myjoyonline.com
Apart from banking and telecommunications, another sector where competition has intensified to the benefit of customers is the mainly the domestic airline industry.

The increase in the number of players has resulted in the drastic reduction of air fares to as low as 50 Ghana cedis currently by one of them, Antrak Air.

Since September last year air-travelers have been paying an average of 100 Ghana cedis for an Accra-Kumasi one way flight and 150 cedis for Accra-Tamale.The various players have since the beginning of the year being reducing their fares considerably – all due to competition.

One of them, Antrak Air is now charging passengers as low as 50 Ghana cedis for its Accra-Kumasi flights. According to the Chief commercial Officer, Kweku Antwi Bosiako, admits this is a rather audacious long-term strategy to attract more customers.

“Obviously there is competition and with this everybody would like to attract customers.It will affect our profits in the interim but we’re looking in the long term. If we manage to grow the industry with most people travelling by air and they realize it faster, safer and affordable they don’t go back to the road” he noted.

CEO for Starbow, Brock Frieson is also sure fares will continue go down but emphasizes it will largely depend on their cost of operations.
“We’re monitoring and we’ll ensure that we’re always competitive but that doesn’t necessarily mean price wars”

The domestic-airline players however maintain, the review in their industry’s tax regime remains critical for the continuous reduction in airfares.