The high cost of aviation fuel called Jet-A1 in the country may stop many airlines from operating. This is according to the Airline Operators of Nigeria (AON).
Speaking on behalf of AON at the ongoing National Aviation Conference (NAC) organised by the Federal Airports Authority of Nigeria (FAAN) in Abuja, the Chairman of Air Peace, Allen Onyema said even though the Federal Government (FG) had interved, success was yet to reflect on the prices of aviation fuel, which he noted is cropping the industry.
In the course of his speech, Onyema revealed that no less than 70 airlines have gone into extinction in recent times, attributing the incessant collapse of airlines in Nigeria to the excessive charges confronting operators in the sector, among other concerns.
His words: “There are so many issues in the aviation industry. Issues like high taxes are making airlines to be unprofitable here.
“We pay excessive charges to the Nigerian Airspace Management Agency. Paying navigation charges is absurd for domestic operations. The mortality rate of airlines in Nigeria is alarming. Over 70 airlines have gone into extinction in the last few years.
“The current fuel crisis will take away three airlines in the next weeks. How do we make money in a situation where we pay salaries and charges to different aviation agencies?”
He noted that 16 months ago, the price of aviation fuel was about N200 per litre but has risen to over N700 per litre today in the local market.
“That is why we ran to the government and the Federal Government has given us about 10,000 metric tonnes of fuel at the cost of N580 per litre in Lagos and about N607 per litre outside Lagos.
“This is not the only issue. Since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered from COVID-19, except those whose countries have injected so much funds to assist them. This is nobody’s fault. It just happened. The government has tried its best by giving us this aviation fuel. This aviation fuel can take airlines out, not only in Nigeria but everywhere in the world.
“Some airlines outside Nigeria have closed down because of the effects of rising aviation fuel. If these things are not addressed in Nigeria, it can affect the bottom-line of all airlines in Nigeria.
“We have come to realise that there is little or nothing the committee set up can do because this is as a result of foreign exchange and the price of oil all over the world now. The fuel marketers will sell according to what they are paying. The cost of aviation fuel has increased, even in London and every other country. Our own is worse because of the increase in foreign exchange,” Onyema added.
